March 28, 2024

Is it worth investing in Bitcoin or Ethereum in 2020?

How is Bitcoin different from Ethereum? There is an opinion that Bitcoin and Ethereum are not actually competing with each other.friend. They are united by only one thing - they both use blockchain technology. And that’s it. Otherwise, they are completely different. To say that they are the same and that they are competing is the same as saying that Exxon Mobil is the same as Netflix, or that they are somehow competing only because both are companies. This does not work at all.

</p>

Companies come in different types and sizes. They target different audiences and operate in different markets. For example, Airbnb competes with the hotel market, Uber competes with taxis, Amazon retails, and Bitcoin revolutionizes money.

Bitcoin features like limitedsupply, its dynamics of supply and demand and decentralization, make it the best among all payment systems and other types of money that exist on the planet today, including fiat currencies such as the US dollar and euro, precious metals such as gold and silver, and even others Cryptocurrencies like Litecoin, Dash, or Ripple.

</p>

If Bitcoin is revolutionizing payments, then whatis Ethereum revolutionizing? First of all, he is revolutionizing the legal contracts on which the interaction of people, organizations, courts, and even government institutions is based. Ethereum has other properties than Bitcoin; in particular, it is a programmable blockchain. In essence, this means that you can write smart contracts on Ethereum or create other developments based on it. This includes literally anything from writing your will on the Ethereum to creating a decentralized Twitter or even collecting “crypto kittens”.

As a pioneer in the smart contract market and with a large community and talented developers, Ethereum is superior to other programmable blockchains such as NEO, EOS and TRON.

Given these different properties, it is obvious thatBitcoin and Ethereum are not the same thing. Bitcoin is the best in the class of payments and means of savings, while Ethereum is the best where programmability, flexibility and the possibility of “add-ons” are important.

One wise man once said: “Imagine that Bitcoin is a tiger and Ethereum is a shark.”

Of course, if you throw a tiger into the water, then a sharkeasily defeat him. But if you pull the shark to land, then the tiger will easily defeat. If you just let the tiger and shark live in their natural environment, it will become obvious that they never collide with each other and both are winners.

Similarly, Bitcoin and Ethereum are most likelywill continue to dominate their respective markets in 2020 and will be major winners in the long run. Therefore, if you want to invest in cryptocurrency in 2020, the question should be, not what, but how much to buy - how to distribute the budget between investments.

What to invest in 2020?

: Unsplash

The answer to this question depends on your readiness.to risk. Many analysts believe that Bitcoin is more reliable, because it is easier. Other developments are not built on top of it. Although this seems like a limitation, it makes it simpler, so its attack surface is much smaller than Ethereum. That is, Bitcoin is less susceptible to bugs, attacks, hacks and other events that can quickly undermine the network.

If Bitcoin has been on the market for more than 10 years and passedtest by battle, Ethereum on the market only a little more than 4 years. Since other developments can be built on top of Ethereum, it is much slower, much faster, it becomes overloaded and more susceptible to bugs and attacks.

Ethereum is far from solving problemsscalability, and most likely, he will face many more difficulties before he becomes the global computer that he wants to see. Thus, Ethereum has more risks. But I also believe that the growth potential of Ethereum is much greater, because the possibilities of what can be built on it are theoretically endless. So, in my opinion, Ethereum has more risks, but also more potential rewards.

Conclusions from Blockshow Asia 2019

</p>

Generally speaking, there has always been a lot of non-existence in the crypto world.only promises, but also skepticism. No matter how enthusiastic a crypto investor may be, his investment will primarily depend on the level of security offered. This is why crypto enthusiasts are increasingly attending events such asBlockshow, wanting to personally meet with the founders of technology startups and other cryptocurrency investors.

At Blockshow Asia 2019, Bitcoin and Ethereum price forecasts, as well as the future and scalability of the blockchain and the current situation of decentralized networks in general, were much discussed.

According to Thon Weiss, an independentThe content maker, who has been in the cryptocurrency ecosystem since 2013, has nothing to do with crypto space other than Bitcoin. He said that the free market will ultimately show how useless other projects were, and there will be one significant blockchain, just like there is one Internet.

He explained his position by the following analogy:

“Imagine you were offered $ 1 million inBitcoins or $ 5 million in any other cryptocurrency to choose from, but on the condition that you will not touch this money for 10 years. Will you choose $ 1 million in Bitcoin or $ 5 million in something else? ”

He also stated: “Stablecoins are important only for those who want to trade without regulation. Your stablecoins are stable only insofar as the government allows them to be stable. I would prefer to trade in the traditional market, because I know that my funds are really safe. I think everyone will use only Bitcoin. ”