Are you confused about whether you should invest in Bitcoin or Ethereum? If yes, you aren’t the only one as there are thousands of people that are confused between the both. It is challenging to decide on one cryptocurrency that you should invest in by considering the current situation. If we consider these cryptocurrencies in terms of market capitalization, Bitcoin stood at first as its market capitalization is more than $1 trillion making Bitcoin the first largest cryptocurrency. On the other hand, Ethereum is no less as it is also growing and is the second-largest cryptocurrency.
In the past few months, it has been observed that bitcoin’s price has surged more than six times, whereas Ethereum’s price has surged more than 15 times. This is where the investors and traders get confused about investing in cryptocurrency. Bitcoin is breaking previous records and is reaching an all-time high, but ether is another cryptocurrency that is performing amazingly. In this going week, ether has broken all its previous records and soared its past mark from $3000 to $3500. If we consider the year-to-date growth of these cryptocurrencies, Ethereum is known to have growth of around 325% in comparison to bitcoin that only grew around 95% in the equivalent time gap. Invest in Bitcoin through Bitcoin Digital and also get the advantage of storing it on the same platform.
Price History of Ethereum
The price of Ethereum in USD ha started to grow in April 2021, and it crossed over $2500. Ethereum has followed the footsteps of Bitcoin every time, and with the growth of Bitcoin in 2021, Ethereum also grew with it but due to different reasons. The reason behind the growth of Ethereum was when an art piece was sold as the most expensive art piece in the world that has a worth of 38000 ETH, which was around 69.3 million dollars. The craze of Ethereum is around investors and traders because of its technological developments that aren’t present much in Bitcoin and other cryptocurrencies.
The main reasons behind the rise in price and growth of Ethereum were the “Berlin Update” and the arrival of a smart contract protocol named Uniswap V3. Both these updates were meant to reduce the transaction costs and ETH gas prices and optimize the trading of Ethereum. Though Ethereum is doing great, it is still difficult to predict the price movements of Ethereum and analyze its future. The price developments of Ethereum can be expected only with the world-changing and accepting Decentralized Finance. Decentralized Finance uses blockchain technology to eliminate the need for intermediaries to perform financial transactions between two parties independently. The future price and development of Ethereum completely depend on Decentralized Finance as Ethereum is not a currency but is an open-source platform that runs blockchain applications. If Ethereum has the feature or facilitates Decentralized Finance, it will lead to the great growth of Ethereum along with it.
Ethereum and Bitcoin vs. Gold
Both Bitcoin and Ethereum are cryptocurrencies that have different purposes, but both are based on blockchain technology. Cryptocurrencies like Bitcoin and Ethereum are considered safe-haven assets, and also these cryptocurrencies provide a hedge against the increasing inflation of fiat currencies. These cryptocurrencies are known to provide a higher rate of return on your investments as these make the best investment asset compared to gold.
Current updates and news about Ethereum
- Ethereum breaks all records in 2021 and has reached quadruple its value this year. This is because of the launch of exchange-traded funds and the increasing demand of ether wallets worldwide to transact the tokens that are non-fungible. These are the main factors behind its rise in price and popularity.
- This year, there is an increase of around 350% in Ethereum’s price, which made it the second-largest cryptography. But still, there are many challenges or risks that are involved in investing in Ethereum.
- Ethereum becomes the second-largest cryptocurrency by breaking all the records of $4000 to make new records. Its price increase is unbelievable as ether in 2021 gains around a 500% surge.
- Elon Musk, the chief executive of Tesla, tweeted about Bitcoin and Ethereum and said the Bitcoin and Ethereum seem high this year.
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