Does Ethereum (ETH) as an asset threaten to strongly outperform Bitcoin (BTC) in the coming months and years?

This is the question we want to address in this article to give long-term investors an interesting perspective on the market. So if this topic might interest you, stay tuned to get ahead of the rest of the market today.

What is Bitcoin?

Bitcoin was created as a decentralized digital currency, allowing individuals to securely send and receive payments without the need for a middleman. It uses a proof-of-work consensus mechanism to validate transactions and maintain the integrity of its blockchain.

What is Ethereum?

On the other hand, Ethereum was designed as a decentralized platform that enables the creation of decentralized applications (apps) and smart contracts. In addition to being a cryptocurrency, ether (ETH), Ethereum provides a blockchain that allows developers to build and deploy decentralized applications. Ethereum also uses a proof-of-work consensus mechanism but is in the process of transitioning to a proof-of-stake agent.

So, while Bitcoin aims to be a digital currency, Ethereum aims to be a decentralized platform for creating and deploying apps and smart contracts.

What's the vision of these two crypto projects?

The vision of Bitcoin is to create a decentralized, peer-to-peer electronic cash system that allows for secure and transparent transfer of funds without the need for intermediaries. The Bitcoin whitepaper, authored by Satoshi Nakamoto, outlines a vision for a new type of currency that would allow for trustless and borderless transactions over the internet.

The vision of Ethereum, on the other hand, is to create a decentralized platform for developing and deploying decentralized applications (apps) and smart contracts. The Ethereum network was designed to be a more general-purpose platform than Bitcoin, with a broader range of capabilities and a focus on enabling developers to build decentralized applications that can be used for various purposes.

In essence, the vision of Bitcoin is centered around creating a decentralized alternative to traditional fiat currencies. In contrast, the idea of Ethereum is focused on creating a decentralized platform for creating and deploying decentralized applications. Both projects aim to bring greater security, transparency, and autonomy to their respective fields, but they approach these goals from different angles.

Ethereum has been proliferating recently, driven by the increasing popularity of decentralized applications and the growing use of ether as a cryptocurrency. Its market capitalization has surpassed many other cryptocurrencies and is currently second only to Bitcoin.

The idea that Bitcoin could become the next money refers to the potential for Bitcoin to replace fiat currencies as the primary means of payment in the global economy. This would require widespread adoption and acceptance of Bitcoin as a form of payment by individuals, businesses, and governments.

The idea that Ethereum could become the next internet refers to the potential for Ethereum to become a decentralized platform for creating and deploying decentralized applications (apps) and smart contracts. This would require widespread adoption and use of the Ethereum network by developers and users.

While both scenarios are possible, it's essential to remember that the cryptocurrency and blockchain space is highly dynamic and subject to rapid change. Bitcoin and Ethereum face significant challenges and uncertainties in their respective journeys, and it remains to be seen what their ultimate impact and role will be in the future.

Whether Ethereum will surpass Bitcoin in terms of market capitalization in the future is difficult to predict, as it will depend on various factors, including the overall adoption and growth of cryptocurrencies, the development and success of decentralized applications on the Ethereum network, and general market conditions.

It's also important to remember that the cryptocurrency market is highly volatile and subject to sudden shifts, so any predictions of Ethereum and its market capitalization should be considered cautiously.

Depending on the market phase, either ETH or BTC is preferable

The topic of this article is a very special one. Namely, today we want to look at the better investment for the coming years: bitcoin's BTC or Ethereum's Ether (ETH).

If you held Ethereum instead of Bitcoin from late 2015 to mid-2017, you were well advised to do so. Because in that relatively short period, the altcoin rose nearly 9,500% against bitcoin.

That's a lot.

However, things looked different in the years that followed. From mid-2017 to September 2019, ETH lost 90% of its value against BTC.

Why am I telling you this?

This historical data shows quite clearly that even for longer-term investors in the crypto market, there are periods when holding one asset over the other is preferable, even when the investor's ultimate goal is to have as many Bitcoins as possible.

Now we see that the price of ETH has risen tremendously against BTC since its low in 2019, which inevitably leads us to whether it is advisable to bet on Ethereum instead of Bitcoin even now.

So, in summary, we are at the beginning of a renewed uptrend here, where Ethereum will significantly increase in value against Bitcoin. It is probably conservative to assume that ETH will triple in value compared to BTC.