Dec 01, · However, even today, the two most talked-about coins remain those that represent the first and second generation of crypto — Bitcoin (BTC) and Ethereum (ETH). The two are not exactly rivals, as they do not aim to do the same thing. Bitcoin is still number one digital currency to date, 10 years after it came to be. Sep 11, · Fundamentals aside, there are plenty of optimistic price predictions for both ETH and BTC. According to a stock-to-flow price model, BTC is closely following the trend of the previous two halvings. The model suggests that BTC could reach $, during this four-year halving cycle. Jan 24, · But is BTC or ETH a better investment? By John Divine, Senior Investing Reporter Jan. 24, By John Divine, Senior Investing Reporter Jan. 24, , at bitcoinlife24.de: John Divine.
Better to trade in btc or ethBTC and ETH: Which one is a better buy?
Generally, a higher transaction fee could suggest that the market has a higher demand for conducting transactions. Therefore users are willing to pay more for faster settlements. That also indicates that more people are using the network. We believe that cryptocurrency is a kind of network value asset, which means the more people use and hodl it, the more valuable the asset will be. If analyzing on-chain activities is like fundamental analysis to equities, analyzing derivatives trading activities could be like statistical analysis.
It could provide market participants with a glimpse of how real traders have been positioning their trades. We could find valuable information from that. We noticed that one of the recent conversations in the crypto community is that the options skew of ETH has turned negative, and it could be bullish for the price.
Traders can use these relative changes as a trading strategy. We believe that the IV changes in different options contracts could somewhat suggest the upcoming volatility of the underlying and how traders were anticipating it. We think that traders should consider this alongside with many other factors that could drive the crypto markets.
The way options traders pick the strike prices seems telling us that market has been takinga more progressive view on BTC prices, while the view on ETH has been relatively moderate.
We can see that most of the BTC options open interestwere in the strike price area, while the second and the third most popular strike price wear around and On the ETH side, strikes have been the most popular, while the second and the third most OI were and On the ETH side, calls with strikes seem like a typical bullish setup.
On the other hand, and puts look more like defensive setups, as ETH has been in a rally since mid-May. On the BTC side, calls with strikes also seem like a standard bullish setup, but calls with and strike prices seem even more aggressive. From the put writing perspective, puts with , , and strike price were all in-the-money. If a trader is bearish on BTC, they may consider puts with even lower strike prices than above However, it looks like BTC traders have been more long-term bullish on the price, while ETH traders have been more focus on the short-term price actions.
Still, traders and investors should be flexible on the trading strategies and adjust their setups according to the market conditions. This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions.
Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
The cryptocurrency market slipped into a red zone, with all major altcoins nursing significant losses. Stablecoins may pose risks to "international monetary stability". Initially proposed in by Vitalik Buterin, the project went live in Ethereum took one of the key innovations behind Bitcoin, the blockchain, and repurposed it to support a broader range of functions.
So, is Ethereum better than Bitcoin? Realistically, they should not be in direct competition, even though they do share a few similarities. Both are decentralised with no central issuer or authority, have a native token powering the network and utilise the distributed ledger technology known as the blockchain.
And passionate communities on both sides inevitably pit Ethereum against Bitcoin. The original vision for Bitcoin was the creation of a digital currency, independent from governments and banks around the world.
Introduced right after the global financial crisis, Bitcoin was promising a censorship-resistant, decentralised financial system at the time when the trust in the traditional financial system was at an all-time low. While Bitcoin aims to create a new financial system, Ethereum expands on that vision. The Ethereum network, through its Virtual Machine and smart contract functionality, allows for the development of real-world applications on top of it.
You can think of it as the decentralised app store. At the moment, both Bitcoin and Ethereum networks are using proof-of-work PoW consensus algorithms. PoW networks are very secure but tend to be relatively slow and resource-intensive. The Ethereum network, however, is in the process of migrating to a proof-of-stake PoS consensus.
The transition is meant to address the scalability issues that have plagued Ethereum for many years. In PoS, miners are replaced with validators, who stake their coins to secure the network. The Ethereum community chose to go with the Casper PoS protocol, which has a punishment mechanism to prevent malicious behaviour. Arguably, supply is the key difference between Bitcoin and Ethereum networks. Bitcoin has a limited supply, with only 21 million coins set to be mined.
This adds a scarcity element to the bitcoin economics. Furthermore, the new supply of BTC is reduced roughly every four years, through a process called halving. Ethereum, on the other hand, has no hard cap on the amount of ETH that can be created. As it attempts to be a decentralised app store, supporting an entire ecosystem of applications, capping the supply would be counterintuitive.
The concept of transaction fees is another differentiating feature in the Ethereum versus Bitcoin comparison. On the Bitcoin network, transaction fees are paid for each and every transaction. These fees go to the miners who then validate transactions and place them into a block. Ethereum network uses the concept of gas, priced in ETH , instead of transaction fees. Every interaction with the Ethereum blockchain requires a certain amount of computational effort. Gas is used to pay for that computation.
Simple send orders, for example, require little effort. Complex interactions with smart contracts, on the other hand, are very gas-intensive. So the cost of an Ethereum transaction depends on its complexity and the gas price, which is set by the miners. Block size is important in comparing Bitcoin vs Ethereum. It plays a key role in determining the transaction costs, confirmation times and scalability of a blockchain.
Coronavirus affects markets. Blocks on the Bitcoin network are currently 1 MB. Disagreements over the block size eventually led to the creation of Bitcoin Cash as the fork of Bitcoin. Bitcoin Cash increased the block size to 8 MB, while Bitcoin maintained its block size at 1 MB and implemented the Segregated Witness SegWit soft fork to increase the number of transactions that can fit into a block.
On the Ethereum network, the block size is measured in gas and each block is limited to The gas limit was increased as recently as June , from 10 million, to alleviate the stress on the network, increase processing capacity and reduce fees. The sell-off coincided with a broad decline in asset prices, from stocks to gold , partially attributed to a rally in the US dollar.
So, what are some of the recent news and developments related to Ethereum and Bitcoin? For quite some time, the main focus of the Ethereum community has been on the PoS migration. It should be able to address the scalability concerns and high transaction fees of the network. The most recent estimates put the launch of the Beacon Chain at the end of or beginning of More recently, the emergence of decentralised finance DeFi applications have pushed transactions and fees on Ethereum to all-time highs.
Not only that, but the total amount of gas used on Ethereum is more than double the peak of level, while the price of gas is almost five times higher. Another exciting development has been the introduction of tokenised Bitcoin on the Ethereum network.
Remember, the two projects operate on different blockchains that are not compatible. This represents just 0. As always, predicting asset prices is a thankless task. Instead, we can look at the fundamentals of both networks to assess their future potential.
BTC , for instance, is underpinned by strong institutional interest and limited supply acts as an inflation hedge, ever more valuable in the world of easy monetary policies. ETH , on the other hand, supports a growing ecosystem of decentralised applications and the transition to PoS will further cement its position as the only meaningful smart contracts platform.