Bitcoin or Ethereum: Which Should You Invest In?

Bitcoin vs. Ethereum

Are you wondering about investing in Bitcoin or Ethereum? Well, you’ve come to the right place. We all know that Bitcoin is kind of like the ‘father’ of all cryptos. But at the same time, no one can argue about the growth of Ethereum, which so happens to be the next big thing after bitcoin.

That said, that presents an impasse that could be the difference between your success or failure in cryptocurrency investments. To help you make an informed decision, let’s take a look at the different elements and compare both cryptos.


Bitcoin or Ethereum: Purpose

The primary purpose of the rise of Bitcoin, from the beginning, was to create a decentralized system so that every individual can have full control of their funds. A life where citizens are not subjected to harsh government taxes. On the other hand, the primary purpose of Ethereum is to create a system that allows other tech gurus to design applications on top of it. That’s what we call smart contracts.


Bitcoin or Ethereum: Mining

As of current status, Ethereum and Bitcoin both use the POW (Proof-Of-Work) consensus system. However, there are plans for Ethereum to switch its consensus to POS(Proof-Of-Stake). In the POW, miners use computation to solve various puzzles and gain rewards for their work. The most valuable part of the POW is that it provides ultimate security in the blockchain system. But the move by Ethereum to POS will get rid of all miners and create validators in their place. So, if ETH moves to POS, it will give Ethereum the ability to scale up.


Bitcoin or Ethereum: Fees

In the Bitcoin blockchain, the miners charge a certain percentage fee for every transaction that happens. More importantly, if you want a faster transaction, then the transaction cost will be higher. On the other hand, Ethereum operates with the Gas system instead of transaction fees. To be more specific, Gas is a unit of measurement that helps determine the computation power required to complete certain operations.


Should I Invest In Bitcoin Or Ethereum?

As you can see, each of these cryptocurrencies affects the crypto world differently. They both have unique and useful features. With that in mind, both cryptocurrencies are worthwhile investment choices. However, I would like to point out that Bitcoin dropped to a new low during the COVID-19 period, and it’s been on the rise since then. There are speculations on TradingView that the cryptocurrency might go even higher by the end of 2020.

When it comes to Ethereum, the blockchain might drop during the shift to POS, but it will quickly rise after adopting the new consensus. So, it might also be a good investment for any Hodlers out there to make an early investment. With that said, if your funds can support it, it’s best to invest in both cryptocurrencies (That reminds me of the saying that ‘you shouldn’t put all your eggs in one basket’).

We hope this article helps bring some clarity in regards to whether you should invest in Bitcoin or Ethereum. Stick around for some more of these articles.



Not sure how to buy Bitcoin? How to Buy Bitcoin: The Ultimate Guide

Ready to start trading? Best Cryptocurrency Exchanges In 2021