5 reasons why you should buy Ethereum instead of Bitcoin

Gun to your head, “Name 7 cryptocurrencies!”

If you are anything like the vast majority (over 95% of the crypto population), Bitcoin and Ethereum will be in your top 5 picks. This shows how popular both cryptocurrencies are in the crypto space. Relative to Ethereum, Bitcoin appears to be at its peak. For the most part, it appears that Ethereum is only gathering momentum to claim the top spot in terms of value and market capitalization. But while Bitcoin is obvious for the first time in this regard, should you choose to buy Bitcoin instead of Ethereum?

This article will explore the top 5 reasons why you should choose Ethereum over Bitcoin without a second thought. Sit back and relax because you are about to learn one of the most important lessons that will evolve your investment journey forever.

A little story

Before we get into it, it is important that you understand a few things about Bitcoin and Ethereum.

Since 2017, Ethereum has positioned itself in the cryptocurrency ecosystem as a decentralized platform that promotes different forms of transactions in the absence of an intermediary or third party. However, it should be noted that while Bitcoin (BTC) has been around since 2008, Ethereum (ETH) launched in 2015 and sold with a unit price of $ 3. Although the two coins are largely different, they both have a market capitalization of $ 1 billion; with BTC having $ 921,629,402,230 and ETH having $ 478,438,977,852. They are currently trading at $ 48,769.48 and $ 4,025.63 as of this writing. Both currencies share some similarities, including digital currencies that can only be accessed online through exchange platforms. In addition, they are stored in wallets. They are decentralized and use blockchain technology: a distributed ledger system. For a newbie just getting into crypto trading, you might consider price movement and decide to invest in ETH, and that’s okay. But as a professional, consider the following five reasons before deciding whether to buy ETH or BTC.

  1. ETH use cases

The Ethereum blockchain uses a full Turing language that allows anyone to create smart contracts. This made it the first in the ecosystem. Simply put, smart contracts are open source snippets that can be used by anyone with the necessary knowledge. This has made it possible for ETH to have many uses ranging from healthcare to gaming to finance and the like. With the help of this new protocol, all Tom, Dick and Harry can create their cryptocurrency token. Unlike BTC, ETH serves as a foundation where other infrastructures can be built in the crypto space. As an investor, what would you prefer to invest in, a car or a piece of land? Suppose you bought a small piece of land, developed or not, it will appreciate over time compared to a car or smartphone. An entity that continually creates value will become more valuable. Continued use of the ETH blockchain to disrupt various industries will consequently lead to an increase in its value and as such would be a good long-term buy.

  1. Greener mining

As a result of the proof-of-work model used to generate most cryptocurrencies, including BTC, environmental concerns with respect to greenhouse gas emissions. This model is based on a trial and error calculation to discover the wrong one that will produce a valid block and as such requires a large amount of power. As a result of this, the crypto space has received many backlash and slow adoption by industries, as is the case with the head of Tesla. Elon Musk. However, an alternative protocol for the Ethereum blockchain (EIP-3554) is being developed to enable the switch to a less power-consuming mining model: proof of stake. This allows users to stake their ETH to verify transactions and earn rewards at the same time. Unlike proof of work, the puzzle solving step would be eliminated, reducing energy use. According to the Ethereum Foundation, it will be analyzed that this will cause a reduction of 99.95% in the total energy used for mining. If, as an investor, you also advocate for a greener environment, I think this should help you make the purchase decision.

  1. Great NFT enabler

The recent buzz in the crypto space has revolved around non-fungible tokens. For the newbies, NFT were made possible by the ERC-721 standard of the Ethereum blockchain. Since the advent of NFT, it has been used to power some of the big NFT markets, including opensea.io. Although current developments in the crypto space have made the creation of NFT possible with other cryptocurrencies, you may still need some ETH. As a crypto creator, there is nothing wrong with pocketing a huge bag of ETH. Positioning is essential as the NFT market is still emerging.

  1. DAO and dApps

The position of BTC in the crypto space is because it is the first to arrive. However, the Ethereum blockchain and its versatility could tip the balance between BTC and ETH over time. Before that time comes, get yourself some ETH (even if it’s for buying). DAOs are autonomous decentralized organizations that exist on the ETH blockchain to function without the involvement of man or third parties. It can be used by companies, NGOs and self-employed networks.

On the other hand, dApps are decentralized applications created using smart contracts. Unlike Facebook and other apps, there is no central authority. DApps can be implemented on social media, banking, art, shopping, and commercial platforms. According to statistics on the dApps status, there are over 2500 dApps on the ETH blockchain currently.

  1. The future of Ethereum

Unlike Bitcoin, with only a community of volunteer technicians, Ethereum has a separate community of developers who work endlessly to help the ETH blockchain reach its full potential by developing more applications and use cases. This implies that there would be continued development on the ETH blockchain due to its extensibility compared to the BTC blockchain. Ethereum 2.0 It will be fully implemented by the end of 2021, further helping ETH secure its future position in the crypto space. Ethereum has a promising future with endless possibilities.

Bottom line

It is never too late to dive into the crypto space. And, even if you’re already fishing from the big pool, it’s never too late to evolve your trading game and catch bigger fish.

A newbie may think they know the best currency to buy just by looking at the difference in their prices. But as a seasoned investor, these five reasons will guide you to a more informed decision. Consider this: With a knife, you can only cut limited things, but you can do several things with a pocket knife. Size is not always the most important thing. Its functionality. Although Bitcoin has lower transaction fees, a stronger mining pool, and a brand, it is nothing more than an online currency, like the rest. So, when closing this page, keep in mind that ETH still has many untapped potentials that you can explore to a measure that you deem suitable for your many needs.

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5 reasons why you should buy Ethereum instead of Bitcoin

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