London, UK, 4 Sep 2021, ZEXPRWIRE – Is it wise for a person who wants to invest in cryptocurrency to choose between Bitcoin and Ether?
An investor would probably look at broader trends. For example, when the value of Bitcoin surged by almost 1,000% in 2017, it pulled up the value of hundreds of other cryptocurrencies too. FinancialCentre broker Vincent Renser says an investor looking at alternative coins is likely to be looking at the entire cryptocurrency market. Bitcoin vs. Ether may not be a significant factor now.
However, if you are comparing two coins by themselves, there is a case for choosing between Bitcoin and Ether. To understand why one has to look into the digital currencies more closely.
Generally speaking, both cryptocurrencies have been designed to do much the same thing – work as a digital medium of exchange. They both claim to be decentralized in nature and not controlled by any government or central bank. The idea is that a person in one country can transact with another person in another country instantly, without having to deal with cumbersome and restrictive currency controls and conversions. Bitcoin vs. Ether are both built on the ‘Blockchain’ technology, a digital ledger that contains records of all transactions ever conducted.
The value of Bitcoin shot up in 2021, fuelled by increased adoption and growing investor interest. A big reason for the same was its limited supply of 21 million. That puts a cap on the extent to which market forces can drive up prices.
On the other hand, Ether is expected to keep pace with Bitcoin in 2021, but it does not have any such advantage over Bitcoin. So when Bitcoin is expected to have a limited supply, Ether will not have that advantage.
The second reason Bitcoin is popular among investors is that it has been around for longer, and hence there are more exchanges available that trade in Bitcoin.
On the other hand, Ethereum suffered from an embarrassing glitch in 2021, enough to stop potential investors from putting their money into Ether.
Hence, while Bitcoin is more valuable than Ether and has a limited supply, investors may choose to invest in Ether if it can overcome the short-term drawbacks. Both Bitcoin vs. Ether have their own pros and cons. Investors will have to do their homework before choosing between them as both cryptocurrencies are expected to remain relevant for 2021 and beyond.
The future of cryptocurrency
Cryptocurrency is expected to continue growing in 2021, with Bitcoin and Ether at the forefront. While they may not be without their flaws, cryptocurrencies are here to say. Whether it is Bitcoin vs. Ether or another digital currency that finds favor with investors, one thing is certain – we will see more of them in 2021 and beyond as demand for them grows.
An endorsement from a tech giant like IBM is one more step in the direction of cryptocurrency going mainstream 2021 and beyond. The technology that cryptocurrencies are built on has been recognized as a potential game-changer in 2021, opening new cryptocurrency applications in 2021.
There are still some challenges to be ironed out in 2021, with safety and security being high on that list in 2021. Indeed, the recent unfortunate incident of a cryptocurrency glitch is a case in point 2021.
However, cryptocurrencies still have some way to go until they can match physical currencies. In 2021, for example, credit card transactions are expected to be more than $4 trillion. Cryptocurrencies are yet to match that 2021.
That said, the future of cryptocurrency is expected to be bright in 2021 and beyond. While the current growth in prices of these digital currencies may be a bubble, they are expected to continue growing once this initial boom is over 2021.
As more and more people, corporations, and countries adopt cryptocurrencies, their demand will increase. That should push up prices.
The ‘Blockchain’ technology that underpins cryptocurrencies is expected to revolutionize business and beyond, making transactions faster, easier, and more secure. It is likely to lead to the creation of new applications and markets in 2021.
By the end of 2021, Bitcoin will likely be at $50,000, according to
Monaco Technology’s latest report. Ether will be at $10,000 in five years’ time, the company forecasted.
So, which cryptocurrency has the edge?
At face value, you would have to give the nod to Ether. It is newer and more scalable than Bitcoin. However, all things are not equal in crypto-land. There’s an upper limit to how much BTC will be mined (21 million). But with Ether, only 18 million of the maximum supply have been mined (as of January 2018).
In addition, Ether is not an inflationary coin. Once all the coins are mined, annual issuance will be capped at 25%, and it’s set to decrease every year. Bitcoin, on the other hand, had a 100% issuance rate in the first block. It has about 14 million coins mined, but that’s expected to drop by half in 2020.
But that doesn’t mean investors should get rid of their Ether now for Bitcoin. Both cryptocurrencies have a very different future ahead of them as they
While Bitcoin is more valuable than Ether and has a limited supply, investors may choose to invest in Ether if it can overcome the short-term drawbacks. The value of both cryptocurrencies is expected to remain relevant in 2021 and beyond.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.