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Is Ethereum better than Bitcoin for the future? (Ethereum vs Bitcoin)
After the tremendous rise in the price of Ethereum in 2017, the question which is plaguing most of the investors is whether we should invest in Ethereum in the current year or whether we should invest in Bitcoin. You have to 1st and foremost look at the past performance of both as well as the application of both. Once you are able to look into that, you would be able to understand which one is a better option for investing.
Underlying application:
Even though the vendor who are accepting Bitcoins is increasing day by day but the underlying application of Ethereum is much stronger as it provides a platform for executing smart contracts which is being increasingly used by more and more companies all over the world.
On the other hand, when you’re speaking about Bitcoin it is being predominantly used as a currency. However, it is not able to replace any of the Fiat currencies in the off-line world. This is one of the main reasons why after the recent run-up, it is not worth investing in at present. The risk-reward ratio is currently in favor of the risk when it comes to investing in Bitcoins.
Media coverage:
When you compare both the cryptocurrencies on the basis of media coverage, you would realize that here, Bitcoin is much stronger as compared to Ethereum. This is one of the main reasons why Bitcoin readily is still attracting new investors. Moreover, you have to take into account the forks(Bitcoin Cash, Bitcoin Gold) which are coming in Bitcoin as well. They are generating additional value for the investors.
With the 1000% rise in Ethereum, Ethereum is also receiving good media hype. Owing to this very reason, it is no longer an unknown cryptocurrency.
Market cap:
You need to understand that Bitcoin is the highest value cryptocurrency by market cap. On the other hand, when you’re looking at Ethereum you would realize that it is the 2nd most valued. However, the gap between Bitcoin as well as Ethereum is pretty huge. Even if Ethereum were to stay the 2nd most valued cryptocurrency, still it has a huge room for appreciation. Moreover, as the underlying application is strong, you can be sure that volatility would be on the lower side.
Owing to all of these reasons, you need to understand that if you’re looking for a relatively lesser volatile cryptocurrency, then Ethereum is one of the perfect options for you. You need to, however, ensure that when you are opting for Ethereum you have a longer-term horizon. Only when you’re having a long-term or reason, it would be easier for you to generate some profits.