In the world of crypto-currencies and Blockchains, the duel of the giants is probably Bitcoin vs. Ethereum. Even if both of the block chains as well as their native Coins have fundamental differences, and not to be compared motives was created, there is always a question of the better crypto-currency. Ethereum is better than Bitcoin or Vice-versa?
In this article we want to give you the 3 most important arguments of the Pro-Ethereum perspective. Important: You should consider this article only as one of many perspectives and points of view. It is a matter of different views to show. Viewing from the perspective of Bitcoin will follow in the future.
Ethereum and Bitcoin: The price performance
We begin with a factor that is for many investors and crypto enthusiasts, arguably the most important: the Performance of the course. It should all of us be aware that such comparisons extremely manipulative are. This means that the results are often greatly influenced by the choice of the Start and end time period.
We would like to focus this article particularly on a short-term period. This means that we consider both crypto currencies, the Year-to-Date perspective. To put it differently: How has the Ethereum course and how the Bitcoin exchange rate since the beginning of the year?
We see here first of all, a positive price performance for Ethereum and Bitcoin. It is, however, also clear that Ethereum could outperform in the year 2020, the Bitcoin exchange rate enormously. This is qualified, however, quickly, if you look, for example, the period from 01.01.2019 – 01.01.2020. Here, again, BTC could rise by around 90%, while Ethereum has lost 8%.
For the selected time period this year, Ethereum, however, is the clear winner.
Fundamentals: Active addresses in the comparison
Now we want to look at the number of active addresses. This will go specifically about how high the actual use of the Blockchain is actually. For this purpose, we use data from the analysis company Messari. We now look together at the following Chart:
Here, too, we see a significant difference between Ethereum and Bitcoin. While the number of active addresses could rise on the Bitcoin Blockchain since the beginning of the year, after all, about 49%, is Ethereum, with a value of 119% is the absolute top.
If we look at this value, of course, automatically the question as to the cause. What are the reasons for the increase of the active addresses on the Ethereum Blockchain?
Ecosystem: a DeFi Hype stops
A big reason for the increase in the variety of opportunity to use Ethereum is. The platform is known to be an open Blockchain, which allows developers to build distributed applications.
The CEO of the Messari, Ryan Selkis, summarizes the many possibilities on the Ethereum Blockchain as follows:
The level of Development on Ethereum is crazy: ICOs, Stablecoins, non-fungible Token, Decentralized Exchanges, and other decentralized applications and Web3 Use Cases.
However, even if the project is experiencing especially due to the hype around Yield Farming, and Decentralized Finance (DeFi) a riser, the project is not free from criticism.
The Messari-CEO said on the other side too, that in spite of all the progress of Ethereum, Bitcoin’s most important projects in the crypto world. Also, Ethereum itself is struggling with a possible delay around Ethereum 2.0 – The Update, which is urgently needed to solve existing problems such as high Gas charges.
It is established that both Bitcoin as well as Ethereum are the two most stable and therefore probably the ’safest‘ projects in the crypto world. The demand for DeFi is high and the adaptability of Ethereum is given. With an Upgrade to Ethereum 2.0, this will continue to grow. And Bitcoin is Bitcoin: The strongest, oldest, and most stable Blockchain, which will be used as a digital Gold, both for private investors as well as institutional investors becoming more and more popular.
Bitcoin and Ethereum to buy? – The Options
If you’re playing with the idea to buy Bitcoin or Ethereum, there are a variety of ways. The span ranges from simple certificates to physical crypto-currencies, which are in your sole possession.
Just as a beginner, the selection is often complex and confusing. We can recommend at this point a look in our comparison. There, we have reviewed the best platforms and providers. If you are still looking for a correct strategy, we recommend you take a look at our articles in the Bitcoin savings plan.
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