Ready to feel the FOMO? In 2009, when bitcoin was first released to the public, it was given away for free. Shortly after, you could buy it for pennies on the dollar.
Eventually, the value started to shoot up. In November 2021, the first cryptocurrency reached an all-time high of $70,000. Imagine if you had a few bitcoin laying around from a few years ago.
And what about Ethereum? Launched in 2015 for $2.77 each, Ethereum hit an all-time high of $4,891 in November 2021.
Don’t you wish you bought it a few years ago? Well, it’s not too late.
BTC vs. ETH, the age-old question in the crypto community. If you’re going to start your crypto investing journey with just one of these coins, which one should it be? They are very different but are both going to continue growing in value over the years.
Check out our bitcoin and Ethereum guide below to learn more.
What Is Bitcoin?
Bitcoin is the world’s first cryptocurrency. It launched in 2009, initially given out for free.
The vision behind bitcoin was to create a currency that could facilitate peer-to-peer trades, without the need for a bank to facilitate the transaction. It prioritizes decentralization, censorship resistance, and community participation.
But because it’s the first blockchain built, it’s not the most efficient. It’s not viable to build other cryptocurrencies or software applications on top of it. And it’s not ideal to use for purchases, as transactions can take a long time.
What Is Ethereum?
Ethereum wasn’t the second cryptocurrency that was launched, but it has become the second most valuable by market capitalization.
Ethereum is a cryptocurrency that can operate as a long-term investment, and as an actual currency. But it’s primarily built for utility.
The Ethereum blockchain makes it easy for other cryptocurrencies to be built on top of it, leveraging the infrastructure Ethereum has already built.
Here are some Ethereum tips. It powers many crypto applications, such as decentralized exchanges, crypto lending platforms, and NFT marketplaces like OpenSea. So much of the crypto market as a whole is built on top of Ethereum, which has been and will continue to drive up its value.
BTC vs. ETH
With a deposit of BTC, the primary function is to hold onto it as an investment. The value of bitcoin has been rising rapidly over the past few years, and it’s a great place to invest your money in order to outperform almost any other asset class.
Ethereum is similar, in that it’s a great place for long-term investments. But it also offers utilities today. Much of the crypto infrastructure and utility is built on Ehtereum since its technology is much more advanced.
So if you plan to be an active crypto investor, experimenting with Defi, purchasing or creating NFTs, lending crypto, or supplying liquidity, you’ll be using Ethereum.
Investment vs Utility
BTC vs. ETH, which is the better investment in the long run? Hopefully, our Ethereum and bitcoin guide above helped clarify some of the differences and give you an idea of why each currency exists.
If you’re just looking to buy and hold as an investor, both cryptocurrencies are solid choices. If you’re looking to engage in the larger crypto ecosystem, however, Ethereum offers much more utility.
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