Ethereum has more use than Bitcoin in decentralized projects. Therefore, analysts and crypto enthusiasts believe that ETH has more potential than BTC and can overcome Bitcoin’s price in the future.
Bitcoin is the first cryptocurrency that was introduced by Satoshi Nakamoto back in 2009. Since its inception, BTC faced many ups and downs and tested the $60,000 level for the first time in 2021. On the other hand, ETH’s price barely reached the $4000 level in 2021 since its invention in 2015.
However, Ethereum has a lot of upside potentiality that influences investors to believe that the price will move up above Bitcoin’s value.
Today, we will see a complete comparison between BTC and ETH so that you can choose the right asset for your future.
What is Bitcoin?
Cryptocurrency is a digital asset running through a cryptographic formula through the blockchain network. For example, Bitcoin is a cryptocurrency that works in a peer-to-peer connection through the Bitcoin blockchain. It is a digital asset that is held by a digital place known as a Bitcoin wallet.
BTC created a revolution as people became eligible to make transactions, from one person to another, without any intervention from financial institutes and banks.
People started to get involved in Bitcoin mining and investing, and in 2021, the price soared to $60,000 for the first time.
The colossal profitability and reliability through blockchain networks make people believe that Bitcoin is a solid investment opportunity than other cryptocurrencies.
What is Ethereum?
Ethereum is an open-source blockchain with the functionality of a smart contract. Here Ether is the native currency of the Ethereum network, which is the second-largest cryptocurrency in the world by market capitalization.
The significance of Ether is that it requires more proof of the network in a speedy way that makes the transaction more secure than Bitcoin. Based on the recent findings, Ether’s transaction speed is 3x higher than Bitcoin. It means when three transactions are happening through the ETH blockchain, only one is possible in Bitcoin.
On the other hand, the ETH blockchain has an open-source network where institutions can create an API through the network. Therefore, any business can connect through the Ethereum network and make transactions through Ether.
When we compare ETH vs. BTC, some functionalities will keep ETH ahead of BTC. However, based on the recent price action (until today), Ether’s value is way below Bitcoin’s.
Why could ETH outperform BTC?
Until this section, we have seen that the Ethereum network is more well-established than Bitcoin. However, its impact is not seen in the price chart, even if Ethereum showed a decent movement in 2021.
In any investment decision, investors should keep an open eye on low prices and future potential. And for Ether, it completely matches all qualities to consider it as a prime investment opportunity.
So let’s see why Ether’s price can outperform BTC:
- DeFi projects
DeFi or decentralized finance runs through a decentralized network where all transactions happen through transparent and highly secured protocols without intermediaries.
In the DeFi channel, any buyer can make transactions through the blockchain network by making the money transfer transparent. Moreover, Ethereum is a programmable blockchain where other currencies and applications are easily acceptable by the network.
It is very significant in the investment world as you can transfer money without any help from banks and financial institutes that saves a lot of money. As a result, businesses started to implement this feature to make their activity secure.
According to the state of DApps, more than 80% of DeFi projects use the Ethereum network for their DeFi projects that may increase the value of Ether in the future.
- Smart contract
It is a self-executing contract that will be generated as soon as some criteria are met. It remains in a code, and after filling in all requirements, the code transfers to the contract.
Imagine that an insurance company paid you without any claim. It is possible through smart contact because the insurance company can automatically check your eligibility conditions to receive payments.
The interesting fact is that the smart contract happens through the Ethereum network. Therefore, investors love Ethereum due to its future potential.
The smart contract will boost after the massive acceptance of non-fungible tokens (NFTs). It is an asset where any artist or creator can sell their digital assets from their artwork. Moreover, they can ensure copyright and royalty information through the smart contract.
- Ethereum 2.0
Ethereum 2.0 is a DeFi platform that is a long-awaited upgrade of the Ethereum network. This upgrade will make the ETH network more secure, scalable, and user-friendly.
The ETH 2.0 upgrade is the most significant fundamental event for Ethereum till now. As per current projections of crypto enthusiasts, Ethereum’s price will soar immediately after release.
Conclusion: can Ether outperform BTC?
It is the central question; whether Ethereum is a good investment opportunity or Bitcoin. But, first, let’s see the result of the battle.
Bitcoin’s age is 12 years, where Ethereum is only six years old. Therefore, it is often not logical to compare these two coins based on price stability and user acceptance. Moreover, Bitcoin is the primary cryptocurrency that works as a price driver in the broader crypto market.
Once the Bitcoin price moved down from the $60,000 level, other altcoins, including Ethereum, started to fall. Moreover, there is a correlation between these coins that allows them to be called Gold and Silver in crypto.
Since the beginning, Bitcoin struggled and faced several crashes, pointing out that the cryptocurrency market is unpredictable. Moreover, due to the lack of price history, some analysts provide buying possibilities in Bitcoin and ETH, while some analysts say this bubble may burst.
Therefore, investors should invest money in the crypto market that they are ready to lose or hold for a long time. Many DeFi projects use the Ethereum network, and ETH.20 is implemented, but it does not mean Ether’s cost will soar immediately above the Bitcoins price.
Ethereums price has many projections with massive bullish possibilities, but proper trade management is the key in any investment.