I get that Bitcoin is the original and has the largest blockchain, but the realistic scenario for mass adoption is institutional adoption, and if BTC becomes big won't it eventually be discarded for ETH since ETH is simply a superior product?
ELI5: Why invest in Bitcoin when Ethereum exists?
byu/-Ophidian- inCryptoMarkets
Posted by -Ophidian-
9 Comments
I dunno bro. ETH is the exactly same price as 4 years ago and probably 4 years ahead.
Why invest in gold when copper exists?
They work better as a pair.
BTC has more liquidity, but ETH has more volatility, so levered ETH works better as a hedge to BTC than BTC itself.
And ETH has staking, so you can go delta neutral on it if you want and still earn real (not nominal) yield.
Bitcoin has the most trust, backing and confidence. That probably matters the most when it comes to a currency (the same reason why gold is used as a currency and not some other equally rare metal or metal with superior chemical properties). Monero is the best as a currency for payments that respect privacy. That leaves Ethereum with the ‘rest’, which is other tokens, smart contracts, etc. That matters more when the flexibility of the technology matters, but right now the volume of transactions isn’t enough to push it beyond the growth rate of BTC and XMR. In the future? Who knows. But right now people value trust and anonymity more than anything else (not at the same time, some value trust and growth, others value privacy, so each has its own clientelle).
Because Bitcoin has cap of 21mln. Bitcoin doesn’t have owner and it is the most important thing in this whole discussion. You don’t know the future of Ethereum, maybe vitalik will change it, maybe he won’t, while bitcoin is always Bitcoin. I personally go 80% BTC 10% Ethereum 10% Solana. I like the idea of Ethereum but is it the best risk to reward investment? I highly doubt it
They serve different purposes. One is truly decentralized and scarce, the other is not. ETH’s benefit is it’s smart contracts. But there are better cryptos like Hedera.
Bitcoin serves as a form of digital gold/money. Ethereum does not.
My main argument would be limited vs unlimited supply but I would have a ton more tbh…
If BTC is digital gold, then ETH is digital silver. BTC is scarce, ETH isnt. There is no supply cap on ETH, it has dynamic supply. So you see there are fundamental differences between BTC and ETH.
BTC has cemented itself in the financial world already while ETH still needs to proof that it can be the backbone of Web3. BTC is a safer bet with smaller potantial gains, while ETH is riskier with more upside potential. Last cycle it underperformed severely (ETH) and it still needs to proof a lot.
At the end it comes down to your risk appetite and if you buy into ETHs bullcase (Backbone of Web3). If you want a safe bet I would suggest BTC, if you got more risk appetite I would suggest ETH.
Why invest in btc and eth when xrp and zbcn are better than both lol 😆