Bitcoin or Ethereum: which should you buy and invest in for the years to come? This is a question that many people have been asking themselves as they have seen the prices of both crypto go up and down over the past few weeks.
It can sometimes be a great advantage to purchase Bitcoin or Ethereum as they start to trend downwards because they're more accessible. However, if you don't have enough money to invest in both, which would be the better option?
In this blog post, we will explore all of the pros and cons of these two cryptocurrencies, so that you can make an informed decision about what to do with your money.
Bitcoin and Ethereum Price Charts Compared
Before jumping into purchasing Bitcoin or Ethereum, you'll want first to understand the background between the two cryptocurrencies. Each has its own history and fluctuation in price, which is essential to understand before choosing one to invest your money in.
Bitcoin Background: Basics, History, Price
What is Bitcoin?
Bitcoin is a digital cryptocurrency that was introduced in 2009. It's decentralized, which means that it isn't controlled by any one person or company and is instead managed through blockchain technology—a public ledger of all the Bitcoin transactions ever made since its creation. It's recognized as the original cryptocurrency to receive popularity.
The History of Bitcoin
Bitcoin was created in 2008 by an anonymous individual, or group of people, under the name Satoshi Nakamoto. It was released as open-source software, so that anyone around the world could use it and contribute to its development without having anyone at a higher level of power. Unlike other forms of currency, there are no physical Bitcoins available for purchase.
Bitcoin price has fluctuated wildly over the years with periods where there's been significant growth and other times when Bitcoin saw sharp declines. For example, in April 2013 and November 2017, BTC prices surged from USD 100 per coin to more than USD 1200 before falling back down again in 2016.
Ethereum Background: Basics, History, Price
What is Ethereum?
Ethereum is a blockchain-based cryptocurrency that was introduced in 2015. The Ethereum network has a broader range of applications than Bitcoin and is also known for its use as an operating system (EthereumOS).
It enables the use of decentralized applications and smart contracts to be run and built without any issues or interference from third parties. This encourages developers to use, run, and build applications using their programming language.
The History of Ethereum
While the history of Bitcoin can be traced back to 2008 when Satoshi Nakamoto created it, there are many different stories and rumors about the birth of Ethereum. All that we know for sure is that Vitalik Buterin invented it after seeing what he considered flaws with BTC's model.
He saw what the potential could be and decided to hold Ethereum to the next level. Ethereum can be used for two purposes. First, it can run applications via the Ethereum network and be traded as a digital currency like other cryptocurrencies.
Bitcoin and Ethereum - Pros and Cons
Pros of Bitcoin
- Protection from Payment Fraud: Bitcoin transactions are irreversible, which means that once you purchase the product, you receive your crypto. Plus, since payments are all well-tracked using the blockchain, the chances of a fraudulent transaction are slim to none.
- Very Well Known: Bitcoin is one of the original and most popular cryptocurrencies, which means that it's more trusted and well known than newer currencies. This pushes more people to use this cryptocurrency method, thus increasing the overall value of the platform, increasing the stability and popularity of Bitcoin.
- Potential for High Returns: With Bitcoin, the return is possible even though the risk of losing money in an investment is high. There's a chance that you'll see profits come to fruition and make a ton of money off your current-day investment. In fact, experts have predicted that the price will go up to $4,287,591 for 1 Bitcoin by December of 2030.
- Limited in the Number of Coins Available: There's a limit to the number of Bitcoins available, which helps keep Bitcoin valuable and scarce. There are currently 18,749,318.75 coins available in existence. Once all coins are sold, there won't be any more coins available for purchase.
- Anonymous Network: One of the benefits of Bitcoin is that it's an entirely digital currency. Since all transactions are done online, there aren't any physical Bitcoins available for purchase, which means people can use goods anonymously without having to face criminal charges from the government or police force.
Cons of Bitcoin
- Unregulated by Any Institution: Bitcoin is not in any way regulated by an institution, which means that if the government ever decides to shut down Bitcoin's network, it will have a significant impact on how many people are able to use and trade within this currency. This also means that there is no protection on your investment if something was to go wrong.
- Potential for Fraud: Since there isn't any regulation or authority controlling what happens with Bitcoin, the chances of fraud and scams are a lot higher. People might try to make money from merchants or consumers without delivering any goods, and nothing can be done about it if this happens.
- Black Market Activity: Bitcoin has become the go-to currency for illegal activity, and people who are looking to purchase drugs or weapons online will typically use Bitcoin. This is because it's not regulated by any institution, meaning that the police can't track down criminals if they're using this cryptocurrency system.
- High Volatility: The volatility of Bitcoin is one of the reasons why it might not be a good investment. It's been reported that there are days when BTC prices can change by over $200, which leaves people who have invested in this currency with potentially huge losses or profits. If you're not a financially stable place to lose a significant amount of money, Bitcoin might feel like too risky of an investment.
- Not Widely Accepted: The fact that Bitcoin isn't accepted in many locations means it's more difficult for people to use it. While some retailers, like Overstock and Newegg, accept this currency, you'll have a hard time using your Bitcoins if you want to buy groceries or clothes offline. Plus, most banks won't allow customers to purchase Bitcoin.
Pros of Ethereum
- Well-Known Community: Ethereum is more than just one of the most popular cryptocurrencies in existence, which means that it's well known and trusted by many people. It also functions as a decentralized application and smart contract, attracting developers looking for a new application to host their programs. This helps to increase its popularity as more investors are attracted to this type of currency.
- Decentralized Network: Ethereum is a decentralized network, meaning that it doesn't rely on one governing entity to manage the entire cryptocurrency system. This means that there are no restrictions on what people can do when they're using this currency—there's also less of a risk for fraud.
- Function As More Than a Cryptocurrency: Ethereum functions as more than just a cryptocurrency. Developers can use this currency to build applications that are decentralized on the network, which helps create new opportunities for people in all industries. This attracts investors who might not otherwise be interested in Cryptocurrencies due to their limitations and restrictions within the market space.
- There is No Cap to Ether: Ethereum does not have a cap on how many Ether can be mined, which means there's no limit to the number of tokens available. As more people enter this market space and use ETH for transactions, it will create an even greater demand for these coins in the future.
- Cheaper Buy-in Than Bitcoin: Ethereum is significantly cheaper to buy than Bitcoin, and it's also a lot easier for new investors to enter this market. If you're looking at investing in the digital currency space, ETH might be a better option because of its lower entry price point.
Cons of Ethereum
- Scaling of Ethereum Is Slow: The scaling of Ethereum is slow, which means that it can take a long time for transactions to be processed. This could leave people who are looking to use ETH frustrated as they have to wait in some instances, and the higher transaction fees might also deter investors from using this currency system.
- Hard to Understand Programming Language: Ethereum is hard to understand if you look at the programming language. There are many complicated concepts that people who aren't familiar with these types of languages will find challenging to comprehend, which might deter many investors from investing in ETH due to this issue. However, if you're experienced and quick to learn new things, you might not find this to be a negative.
- More Significant Transaction Fees: Ethereum has higher transaction fees than Bitcoin, which might not be practical for investors looking to use these currencies regularly. If you're using ETH as your primary currency, it will take more effort and time to make transactions through this system due to the high fees.
- Risky Investment: Like all cryptocurrencies, investing your money is considered to be a high-risk investment, which means that there's no guarantee of what will happen to the value in the future. You must be willing to part with this money if the market crashes, which is why it's essential only to invest money you don't need.
- Lacks Scarcity: The number of Ether that can be mined is not limited, which means there's a chance that the value will decrease in time. If you're looking at ETH as an investment, it might lose more value over time if people can mine these coins and create even greater supply in the market space.
Is Ethereum better than Bitcoin - the key differences
After reading the pros and cons of each cryptocurrency, you might be wondering if Ethereum is better than Bitcoin. Well, it really depends on what you're looking for in a cryptocurrency.
Are you looking for a low entry point? If so, then Ethereum might be the better option because of its lower buy-in costs. However, suppose you're more interested in investing your money. In that case, Bitcoin might work out to be a better investment since it has been shown that these coins are able to retain their value over time and have proven less risky than other currencies available on the market today.
What type of investor are you? Is there an industry where ETH would prove helpful or beneficial to use as a currency? Do any specific cryptocurrencies interest you outside of BTC and ETH already outlined within this post? These questions can help determine which is right for you to invest in. Since the two cryptocurrencies are so different, narrowing down your needs will help you choose the best route for purchasing the right Cryptocurrency.
Purchase Bitcoin and Ethereum Through Paydepot Today
Ready to start investing? If you've decided which cryptocurrency to invest in, purchasing Bitcoin or Ethereum through Paydepot is a great option. At Paydepot, we make it easy to buy the crypto of your choice, whether you want to purchase online or find a Bitcoin ATM to purchase with cash.
FAQ on Buying and Investing in BTC and ETH
1. How can you invest inBitcoin or Ethereum?
If you're looking to invest in Bitcoin or Ethereum, you're first going to need to have a wallet. This is where your coins will be stored and protected. You won't have access to them until it's opened on a computer or mobile device. Once you have a wallet, you can use an online source, like Paydepot, to purchase your crypto of choice.
2. What is the difference between Bitcoin and Ethereum?
The main difference between the two cryptocurrencies is that BTC has been around much longer than ETH. However, there are still more buy-in opportunities for those who purchase Ethereum due to its low price. However, if you're looking at investing in something long-term, BTC might prove to work out better due to its slower inflation rate through mining.
3. What is an Ethereum or Bitcoin investment?
An Ethereum or Bitcoin investment is a way of investing in either cryptocurrency, which means that you're buying and selling the coins on the market.
4. Does Paydepot sell cryptocurrency?
Paydepot does not sell cryptocurrencies, but we make it easy to purchase BTC or ETH through our site with cash at an ATM near you. If you've decided to buy online, this transaction will be completed within minutes after entering your details securely.
5. Ethereum vs Bitcoin: Which is winning?
Bitcoin is currently the top dog when it comes to cryptocurrencies. It has been around for a while, but Ethereum might be taking over in terms of market share and possible dominance down the road. However, both consistently tend to fluctuate in value, and both tend to have positives in different aspects.
6. Bitcoin vs. Ethereum: Which should I invest in?
If you're looking to invest in either Bitcoin or Ethereum, it really depends on what your needs are and why you want to buy the cryptocurrency. For example, if you're more interested in a low entry point with less risk, then ETH might be better for you. But, suppose you want something that is going to retain its value over time and has proven safer than other currencies available on the market today. In that case, BTC might work out better as an investment opportunity.
As of right now, there isn't one single currency that's considered best by all standards since they differ so much from each other. However, both options will give investors different opportunities depending on which type of investor they are through how they choose to use it.
7. Bitcoin vs Ethereum: Which rises faster?
Bitcoin and Ethereum rise in value at different rates. With Bitcoin, it is generally slower but has proven to retain its value over time when other currencies have lost theirs. However, with ETH, the price fluctuates a lot more—sometimes rising fast and then falling just as quickly.