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Between investing in bitcoin and Ether

by Ndianabasi Tom

Over the years, Bitcoin (BTC) and Ether (ETH) have positioned themselves as the two most prominent cryptocurrencies in the world. While BTC is often referred to as digital gold due to its status as a store of value asset and finite supply of 21 million coins, ETH is the native currency of the largest smart contract platform, Ethereum. This respective uniqueness makes both BTC and ETH very attractive to crypto investors. Nonetheless, which among them would you bet your money on? BTC, ETH, or both?

BTC adoption is growing stronger.

Being the first-ever cryptocurrency to go mainstream, BTC has enjoyed significant brand recognition, adoption, trust, and liquidity in the market. This makes it the No.1  cryptoasset by market cap as millions of individual investors and institutions choose it. Per Coinmarketcap data, BTC boasts a market capitalization of over $1.2 trillion and over 50 million holders at the time of writing. 

Remarkably, institutional adoption for BTC has skyrocketed in recent months. Recall that the United States Securities and Exchange Commission (U.S.SEC) approved 11 spot bitcoin exchange-traded funds (ETFs) to be listed and traded on stock exchanges in January 2024. 

This and many more positive developments have led to a massive funds inflow into BTC with spot bitcoin ETFs AUM exceeding $55 billion and its price setting a record high. Meanwhile, Michael Saylor’s MicroStrategy has invested a whopping $1,444.7 million in BTC in March 2024, with the tier-one company holding 214,246 BTC at press time.  

Reaching a new all-time high above $73,000 per coin on March 14, the soaring investor interest in BTC is largely fueled by the fourth bitcoin halving event expected in April 2024. The pre-programmed event is expected to take BTC price above $100,000 later this year, according to several crypto experts. 

Read also: What is bitcoin? 

Read also: Bitcoin at all-time high of over $73,000: What is fueling the surge in the crypto market?

Ethereum’s Ether Progressing

  • Ethereum has established itself as the leading platform for decentralized finance (DeFi), non-fungible tokens (NFTs), and various other applications, leading to significant liquidity and adoption for its native token ETH. This is evident in the surging market cap and ETH price. 

Though trading below its all-time high of $4,891 reached in 2021, ETH has remained the second-largest cryptocurrency for years with a market value of over $413 billion at the time of writing. Coinmarketcap data further shows that ETH has a crypto market dominance of 16.66%, second to bitcoin which has a dominance of 51.70% at press time. 

Likewise, the asset’s supply has reduced by a whopping 430,000 ETH since the Merge upgrade in September 2022 given that a good percentage of fees paid for using Ethereum are burned. Recall also that Ethereum developers implemented a major upgrade —codenamed Dencun— on the blockchain on March 13 to lower gas fees on the chain’s L2s. 

Read also: What is Ethereum? 

These positive metrics imply that the investment case for ETH is getting stronger by the day. With Wall Street indicating its interest in Ether through the push for ETH ETFs, the popular cryptoasset may be in for a massive price rally in the latest crypto bull market. Notably, leading global asset managers VanEck and ARK 21Shares have filed for approval to launch their respective ETH ETFs. Reports show that May 23 is the final deadline for the SEC to decide on their applications.

Overall, citing performances in the 2017 and 2021 bull market cycles, experts expect ETH to hit at least $8,800 or $14,750 per coin, assuming BTC breaks $100,000. 

Read also: Ethereum Dencun Upgrade Set to Launch March 13, as ETH Price Pushes Above $3,400

Bottom line

BTC and ETH have proven to be solid cryptoassets since their inception. In other words, their potential is glaring, presenting them to be good bets for crypto investors. However, as with every other digital asset, there are no guarantees that investing in either BTC, ETH, or both assets would lead to a good return on investment. Not financial advice. Therefore, don’t fail to do your own research (DYOR). Invest only what you can afford to lose. 

Read also: What is bitcoin halving and why does it matter to crypto investors?

Image source: Times of India

Credit: Ndianabasi Tom  A crypto journalist and content writer who has been talking about cryptocurrency and blockchain technology since 2018, Ndianabasi is a Writer at Crypto Asset Buyer (CAB).