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Investing in ETH v. BTC for the Future

BySeema Gurnani 21.1.2019         Mail Now X   Post Comments

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Cryptocurrencies are quickly becoming another investment opportunity for the shrewd investor. With most seeing it as the future of worldwide currency, we are still a long way from that though. Currently the cryptocurrency trade has numerous stumbling blocks and hurdles that include governments, banking institutions and the limited oversight on its trade. Despite all the recent troubles however, the market growth is estimated to cross $27 billion in Ethereum coins alone.

Currently experiencing a surge in the active market, investors looking to invest on the blockchain based coin are asking how it compares to the bitcoin? The answer, in the short-term, bitcoin is still considered the standard for cryptocurrency but many see the Ethereum having the possibility to turn the tables long-term.

While planning to invest on a cryptocurrency like Bitcoin or Ethereum, it is crucial to understand that the market for cryptocurrency is still very raw and young, this means the potential for growth is still incredibly immense and the market around cryptocurrencies is constantly evolving. It is also important to understand that the is constantly shifting back and forth and that trade values are not cemented.

The Difference

When considering which of these two types of cryptocurrencies to invest with, it is important to know the differences between them.

One of the biggest differences is the fact that the Bitcoin is a standalone currency, it is well established and is considered the standard bearer for cryptocurrencies in the current market. Ethereum while also a currency of its own, also works as a ledger technology, one that many companies are beginning to use to create new programs. While the software gives the Ethereum a different spectrum for investors to consider when considering growth, there is also the argument that because bitcoin functions purely as a currency it is more streamlined and as such a safer investment.

Another big difference is the trade value, the current Bitcoin to Ethereum exchange rate is 0.1:2.83 in favor of the Bitcoin, this means that the Bitcoin has a much stronger hold financially across the globe, as an investor however, we aren’t looking at current market value as much as we are potential growth for net profit.

Therefore, it is important to understand what the potential growth for these coins are, the current value of the Ethereum coin is approximately $129 with a projected value of $3844 by the year 2023, the upside of Ethereum seems large when considering the next five years. The Bitcoin however, is currently trading at $3674 and has the potential to grow to $51,000 by the year 2023.

Trading

Trading between cryptocurrencies is common practice when investing in them, for investors looking into trade, finding value for these currencies can be a challenge. One popular method is going the route of conversion between XRP coins and Eth coins. The current ETH to XRP conversion rate is 1:389. When trading cryptocurrencies, please keep in mind that using a stable wallet for your coins helps, some of the best bitcoin wallets currently use blockchain and are regulated by some affiliated body of the government to promote fair trade practices.

Conclusion

When considering an investment, it is crucial to recognize potential market growth and identify your personal needs, in this case, both Bitcoin and Ethereum are good long-term investments looking at an upside. Although the value of the Ethereum must catch up to the bitcoin, for investment purposes only the potential projected growth for Ethereum is higher. Currently, the Bitcoin is projected to grow at a staggering 1262% but the Ethereum boasts an even more impressive 2880%. The biggest decision in this case would be to choose between a stable power and a developing one, remember that the hurdles for both are very different and the rewards differ as well.

TAGS: cryptocurrency,   Ethereum,