Bitcoin or Ethereum: What Is a More Viable Investment In the Long Term?

When it comes to cryptocurrencies and the cryptocurrency market, anyone interested in them first mentions Bitcoin and Ethereum. Trading BTC to ETH is available on almost every crypto exchange. The major cryptocurrencies have truly changed the world, but which one is better for investment?

What is the difference between Bitcoin and Ethereum?

Bitcoin was the first successful cryptocurrency and was created as an alternative means of payment, a decentralized digital currency. Although they have not yet become an alternative form of money during their existence, they are still evolving towards a means of payment and a store of value. Experts say that Bitcoin is indeed acquiring more and more features that bring it closer to gold.

Ethereum is a multifunctional blockchain platform and cryptocurrency. The original purpose of Ethereum was to develop an improved version of Bitcoin, but today there are more differences than similarities between the major cryptocurrencies. Ethereum is multi-tasking and, above all, remains a development tool. The massive emergence of new crypto projects and entire areas of the crypto industry is primarily the success and merit of Ethereum.

Bitcoin is a more independent and decentralized cryptocurrency that enjoys a high level of trust among investors. Throughout its history, the number of hard forks has decreased, while Ethereum already has a number of alternatives available for purchase along with the original coin, in particular on

On the other hand, ETH has more applications. The platform’s capabilities can potentially be used in the areas of logistics, finance and audit. Another undoubted advantage of Ethereum is the high speed of transaction processing. To solve problems with blockchain scalability, there was a transition to the Proof of Stake consensus mechanism. With the gradual implementation of additional updates, a significant increase in platform throughput is expected.

Taking into account all the characteristics and capabilities, Ethereum surpasses Bitcoin in terms of transaction volume and number of active users. However, it should be noted that Ether is more volatile compared to Bitcoin and is preferable for active trading.

Another significant difference relates to monetary policy. Supported by a limit of 21 million units, the emission of Bitcoin creates the preconditions for a gradual increase in the price of the asset. In the case of ETH coins, the supply is not limited, although their tokenomics include anti-inflationary measures.

The BTC price is determined directly on the market, while the ETH price is highly dependent on the platform itself and the pace of development of the decentralized finance (DeFi) industry. Currently, the Ethereum blockchain is the leader in its segment, but the emergence of a worthy competitor is a matter of time.

Which coin is better for long-term investment?

When it comes to choosing a coin for long-term investment, there are many variables to consider. These include the functionality of each asset, the relationship between supply and demand, and the impact of regulatory authorities.

Bitcoin remains the flagship of the market, setting its overall dynamics. Cryptocurrency No. 1 is evolving towards a means of accumulation and preservation of capital. It is unlikely that it will be possible to oust BTC from this niche.

Ethereum consistently ranks second in the ranking of the most capitalized cryptocurrencies. However, younger and more advanced projects are appearing on the market that offer the same opportunities as the Ethereum blockchain, but are better in one or more indicators. So far there are no visible prerequisites for changing ETH’s position in the ranking, but in the very long term the situation may change.

However, Ethereum is currently more accessible compared to BTC, has greater growth potential, and has the potential to generate greater profits over the coming decade. Therefore, it is reasonable not only to track the Ethereum rate, but also to include it in an investment portfolio to achieve risk diversification.