The dynamics of global currency transactions are changing rapidly, and the cryptocurrency trend is at the heart of this. Over the past year many new cryptocurrencies have been initialized through ICOs, however, Bitcoin and Ethereum still hold a larger share of the ‘cryptocurrency pie’.
Although the price of Bitcoin has surged to new highs, there are a several reasons why investing in Ethereum may prove to be a better choice over Bitcoin.
Ethereum is a relatively new platform in the cryptocurrency market when compared to Bitcoin. However, Bitcoin has a supply cap of 21 million BTC coins whereas Ethereum has a current supply of 92 million coins. Moreover, Eth is the only currency at this point that has no fixed limit of maximum supply. These figures indicate that Ethereum offers higher investor participation in the future.
More Advanced Technology
Though Bitcoin has been around in the market for over nine years, it is believed that the Ethereum platform offers more versatility when compared to the Bitcoin technology. The platform runs on what are called “Smart Contracts,” which enables the ability to build decentralized apps (dApps). This means that in addition to being just a store of value, Ethereum can automate transactions based on inputed criteria.
Smart Contracts allow investors to exchange other commodities like real estate or loans, by eliminating service providers and thus the fees that come with those services, and thus creating a greater potential for more real-world applications.
Higher Growth Rate
In the last year, both the Ethereum price and Bitcoin price have witnessed significant jumps. However, when compared in terms of percentage growth, the gain for Ethereum is over 100x that of Bitcoin. The price of Eth has already grown rapidly in the past year and speculators say it will continue to gain rapidly as more apps and use cases come out using its technology.
Both cryptocurrencies do have a similar rise-and-fall pattern, however, it remains to be seen in the future as to how the momentum and trends shift ahead, and who takes the upper edge in market cap.