Altcoin
Which is Worth Investing in 2022-23?
Which is a better investment, Bitcoin or Ethereum?: This debate has been going on for a very long time. But there are certain things you should keep in mind before evaluating any of them.
The major distinction between Bitcoin and Ethereum is their respective use cases. Simply put, Bitcoin is considered as a store of value, but Ethereum facilitates smart contracts and secure financial transactions.
Though Ethereum was supposed to be a complement to Bitcoin, it has instead become a competitor. Bitcoin marked the advent of a new type of digital currency that functions independently of any government or organisation.
It is important to note that Bitcoin is a cryptocurrency, whereas Ethereum is a platform.
Future of Ethereum and Bitcoin
The most recent difference between Bitcoin and Ethereum came with the completion of the Ethereum “merge” in mid-September. Both cryptocurrencies formerly employed the proof-of-work (PoW) process to validate transactions and safeguard the blockchain. Although Bitcoin continues to employ PoW, Ethereum’s long-awaited Merge transitioned the network to a proof-of-stake (PoS) process.
The Ethereum network’s energy consumption is predicted to shrink by more than 99% as a result of the PoS transition. One of the most serious critiques levelled against cryptocurrency in general has been its vast carbon footprint and high energy requirement, which ETH has now directly addressed but Bitcoin has not.
Investors should keep in mind that transitioning from one legacy system to another is a challenging process, and should anticipate some bumps along the road.
Also Read: Bitcoin, Ethereum Price Prediction- Altcoin Rises As BTC Regains Lost Ground
According to experts, three things will happen as a result of the switch: The merge will lower the amount of new Ether created each year by around 70% to 75%, reduce Ethereum’s carbon emissions by 99% or more, and make the cryptocurrency more appealing to investors who are concerned about environmental, social, and governance aspects, or ESG. This may lead to an influx of institutional money into the Ethereum ecosystem.
On the other hand, experts continue to predict that Bitcoin will reach $100,000 – and it’s a matter of when, not if. First and foremost, it is limited in quantity, therefore its value will rise over time. Bitcoin will most likely see short-term volatility and long-term growth.
It is useful because it addresses two major concerns with the existing financial ecosystem: distrust and inaccessibility. It is a decentralised network that enables individuals to trade value around the globe without the need for a regulatory authority or financial middleman. All you need is Internet connectivity and a computer or smartphone.
Conclusion:
Bitcoin and Ethereum have fallen by more than half since their all-time highs in late 2021. While crypto winter is in full swing, it might be a great time to invest wisely in this asset class.
From a practical standpoint, investors should build a well-diversified portfolio. Bitcoin and Ethereum should be part of such a portfolio.
Also Read: Bitcoin Vs Ethereum: Twitter’s Jack Dorsey Ready For War
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
