Ethereum is Outperforming Bitcoin Again! Does This Mean ETH is A Better Buy?
2022-04-01 15:06:50
Is Ethereum A Better Investment Than Bitcoin In 2022?
On November 30, 2021, Bloomberg reported that Ethereum outperformed Bitcoin by the greatest amount since its launch in 2015. While both of the two coins created new record highs earlier that month, Ether gained about 530% since December 2020, compared with a doubling in value by Bitcoin, widening the performance gap between the two by more than 400%.
As the largest altcoin, the impressive performance of ETH price made experts and analysts believe that the new altcoin season had started. This month, the confidence index level related to the altcoin season was revised. On the 20th towards the weekend, Ethereum’s price rallied more than 16% while Bitcoin rose 8.4% according to recent data from Gate.io.
Bitcoin vs Ethereum, which is a better Buy in 2022?
While Bitcoin only managed to return 59.8% last year, Ethereum greatly outpaced it with a returning rate of 399.2% thanks to the popularity boom of NFTs and the creation of DeFi 2.0 protocols which expanded possible use-cases. In the longer term, first traded in 2009, BTC started with less than 1 cent and ultimately hit an all-time high of almost $69,000 in November 2021. Conversely, ETH debuted in 2015 at less than $3, again in November 2021, it recorded a new high of $4,891.
Some experts say that the comparison between Ethereum and Bitcoin is like comparing electricity with gold. "Bitcoin to me is more of a commodity, like gold, for example – it's more of a medium of exchange, almost, compared to Ethereum, which is actually infrastructure for people to build apps on top of," says Urvashi Barooah, principal at Redpoint Ventures.
Barooah’s view in fact reflects the attitude of many Ethereum supporters, which is that while the first-mover-advantage argument works in Bitcoin, Ethereum seems to have the greatest long-term appreciation potential.
As the first cryptocurrency, Bitcoin is still unmatched. However, it is also clear that there has been a lot of bashing of it in recent years, such as the energy consumption issue and lack of utilities other than being a store value. So far, Bitcoin has not come up with a convincing enough solution.
As for Ethereum, it has brought virtually limitless possibilities. For example, other cryptocurrencies are issued on it and that is why there are hundreds of ERC-20 tokens on the market; non-fungible tokens, or NFTs, are trading freely using ETH on the platform every day. More importantly, it is actively working towards addressing its own energy- and fee-based shortcomings through a slow but sure transition towards ETH 2.0.
Investors are seeing the potential of 2.0 and are rushing in to buy Ethereum, hoping it will replace Bitcoin when it is fully upgraded. Adrian Kolody, co-founder of Domination Finance, a non-custodial, decentralized exchange for trading crypto dominance, or market share, is one of the long-term investors.
"In my opinion, ETH is the more solid investment long term," Kolody says. "BTC is coming under more scrutiny for the lack of utility, and if ETH 2.0 delivers on its promises, it isn't even going to be a contest anymore.”
Unfortunately, Ethereum 2.0 is still a long way out and nobody really knows when it will launch. Some say 2022, and some expect the shift in 2023 or beyond. Do keep this in mind if you also want to invest in Ether.
On November 30, 2021, Bloomberg reported that Ethereum outperformed Bitcoin by the greatest amount since its launch in 2015. While both of the two coins created new record highs earlier that month, Ether gained about 530% since December 2020, compared with a doubling in value by Bitcoin, widening the performance gap between the two by more than 400%.
As the largest altcoin, the impressive performance of ETH price made experts and analysts believe that the new altcoin season had started. This month, the confidence index level related to the altcoin season was revised. On the 20th towards the weekend, Ethereum’s price rallied more than 16% while Bitcoin rose 8.4% according to recent data from Gate.io.
Bitcoin vs Ethereum, which is a better Buy in 2022?
While Bitcoin only managed to return 59.8% last year, Ethereum greatly outpaced it with a returning rate of 399.2% thanks to the popularity boom of NFTs and the creation of DeFi 2.0 protocols which expanded possible use-cases. In the longer term, first traded in 2009, BTC started with less than 1 cent and ultimately hit an all-time high of almost $69,000 in November 2021. Conversely, ETH debuted in 2015 at less than $3, again in November 2021, it recorded a new high of $4,891.
Some experts say that the comparison between Ethereum and Bitcoin is like comparing electricity with gold. "Bitcoin to me is more of a commodity, like gold, for example – it's more of a medium of exchange, almost, compared to Ethereum, which is actually infrastructure for people to build apps on top of," says Urvashi Barooah, principal at Redpoint Ventures.
Barooah’s view in fact reflects the attitude of many Ethereum supporters, which is that while the first-mover-advantage argument works in Bitcoin, Ethereum seems to have the greatest long-term appreciation potential.
As the first cryptocurrency, Bitcoin is still unmatched. However, it is also clear that there has been a lot of bashing of it in recent years, such as the energy consumption issue and lack of utilities other than being a store value. So far, Bitcoin has not come up with a convincing enough solution.
As for Ethereum, it has brought virtually limitless possibilities. For example, other cryptocurrencies are issued on it and that is why there are hundreds of ERC-20 tokens on the market; non-fungible tokens, or NFTs, are trading freely using ETH on the platform every day. More importantly, it is actively working towards addressing its own energy- and fee-based shortcomings through a slow but sure transition towards ETH 2.0.
Investors are seeing the potential of 2.0 and are rushing in to buy Ethereum, hoping it will replace Bitcoin when it is fully upgraded. Adrian Kolody, co-founder of Domination Finance, a non-custodial, decentralized exchange for trading crypto dominance, or market share, is one of the long-term investors.
"In my opinion, ETH is the more solid investment long term," Kolody says. "BTC is coming under more scrutiny for the lack of utility, and if ETH 2.0 delivers on its promises, it isn't even going to be a contest anymore.”
Unfortunately, Ethereum 2.0 is still a long way out and nobody really knows when it will launch. Some say 2022, and some expect the shift in 2023 or beyond. Do keep this in mind if you also want to invest in Ether.
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