When looking to invest in the crypto market, understanding the cryptocurrency you buy is imperative. We often hear questions like is Bitcoin (BTC) better than Ethereum (ETH)? And the truth is, aside from them both being cryptocurrencies, and currently ranked number 1 and number 2 in terms of market cap, that is about where their significant similarities end. In this article we’re going to detail everything you need to know about these two completely different ecosystems so you can establish for yourself which is a better buy.
What is Bitcoin?
Bitcoin is the original cryptocurrency, the one that instigated and ignited the entire market we know today. The cryptocurrency was designed by Satoshi Nakamoto, an anonymous entity, and released in a white paper in 2008. The first block, also referred to as a genesis block, was mined in January 2009, and the rest as they say is history.
Nakamoto designed Bitcoin to offer the world an alternative banking system, one not governed or controlled by banks or governments. Bitcoin is an entirely decentralized operation, run by believed to be over 10,000 nodes around the world. Through blockchain technology, the payment system facilitates peer to peer payments, no matter where the parties might be geologically located. Used as both a medium of exchange and a store of value, BTC has received widespread adoption, corporate interest, and mainstream media attention in the past several years.
The main purpose of Bitcoin was to offer the world a feasible alternative to traditional fiat currencies. The cryptocurrency currently dominates 65% of the crypto market, with over 8,000 altcoins and a $1 trillion crypto market value. Bitcoin’s current market cap is just under $700 billion.
What is Ethereum?
While Bitcoin was created to offer an alternative monetary system, Ethereum on the other hand was created as a blockchain software platform. Ethereum was designed to offer developers an opportunity to build blockchain based decentralized apps (dapps) and smart contract functionality on top of their network.
Originally designed to work alongside Bitcoin, Ethereum ended up offering an entirely different use case and eventually became known for something entirely different. Ethereum is considered to be one of the busiest blockchain networks as the platform provides infrastructure to an incredibly broad range of industries, including the DeFi industry, gaming, gambling, tokenization (Tether for example is built on Ethereum), etc.
So while Bitcoin offers a store of value and medium of exchange, Ethereum is more of a decentralized computing network for application development. The cryptocurrency fueling Ethereum is called Ether and is represented by ETH. Every action made on the Ethereum network requires ETH (also known as Gas).
Ethereum Vs Bitcoin: History And Performance
Looking back at the last year, both cryptocurrencies market performance was impressive, to say the least.
Bitcoin rose through the ranks from being a fringe investment instrument to becoming the chosen asset for companies’ reserves. Bitcoin opened the year trading at $7,300 before hitting pandemic influenced lows in March of around $5,300. As Bitcoin rose from the ashes, it underwent the scheduled halving in May, and then entered a supercharged bull run like no other.
Many Wall Street and institutional investors took notice, and as they began pouring their reserves into the digital asset the price only continued to climb. By the end of the year Bitcoin had hit new all time highs of $28,000 before hitting a whopping $40,000 in the first week of January 2021. The price has since corrected, trading in the $36,000 region. Still an impressive run considering the BTC price this time last year wasn’t even above $10,000.
Etheruem too had a great year, experiencing gains of roughly 470%. Starting the year trading at $130, the cryptocurrency managed to hit $740 come the end of the year. On the backtail of Bitcoin’s bull run in the first week of January 2021, ETH reached $1,300, missing it’s previous all time high by just over $100. The price has continued trading along this value, and the entire network has a market cap of $152 billion.
Built on top of the Ethereum network, the DeFi industry also saw incredible gains last year. The entire industry’s net worth rose 1,200% to an unexpected $13 billion. Other noteworthy performance indicators for Ethereum is their launch of the Ethereum Enterprise Alliance (EEA). The EEA is designed to offer large corporations, of which there are already over 200 that have joined, the opportunity to implement the Ethereum blockchain into their business. The final contributing factor to Ethereum’s bullish year is the launch of ETH 2.0, the first phase of 4 as the platform moves to a Proof of Stake consensus.
So, Which One Is A Better Buy In 2021?
Both markets have shown incredible returns this past year, as well as over the hardest hit months of the pandemic. As we mentioned earlier, both cryptocurrencies represent two unique and very different networks. While Bitcoin is proving to be a reliable store of value, Ethereum offers an opportunity to build and implement blockchain technology into many different avenues.
Cindy Yang, team lead for the Duane Morris Fintech industry group sums it up by saying, “I think they’re so different that it’s actually like choosing between two stocks from different sectors.” Whie Bitcoin has changed the way we use money, Ethereum is changing the way we conduct mortgage transfers or securities trading for example.
While Ethereum has the potential to become an outstanding market performer, as it currently lies, many investors are pointing to Bitcoin as a more viable investment – for the moment. Galaxy Digital stated “Our belief is that Bitcoin has the highest near-term probability of adoption and inclusion in mainstream portfolios.”
Ethereum Vs Bitcoin Investment: How To Buy Them On Oobit
Buying either Ethereum or Bitcoin (or both) on Oobit is as easy and simple as clicking your fingers. We have streamlined the processes to ensure the buying exercise is as effortless and straightforward as possible. You can buy Bitcoin and buy Ethereum with your credit or debit card, receive the cryptocurrency in minutes, and still store them in our military grade air gapped vault in less time than it took to read this article.
All you need to do is enter your email address here, and we’ll guide you through the rest. Simple, fast and reliable, Oobit is the answer you’ve been looking for in the crypto markets. It’s time to enter a new financial landscape, and we’re here to assist you every step along the way. So is Bitcoin (BTC) better than Ethereum (ETH)? We’ll leave that up to you to decide.