The crypto market is still in a long-term depression. Yet, well-seasoned and battle-hardened investors know well that assets are purchased on the downfall. In light of Ethereum switching from proof-of-work (PoW) to proof-of-stake (PoS) protocol, as well as the current geopolitical events, the decision of what coin to invest in, ETH vs. BTC, becomes very pressing.
Let’s review this crypto pair from the perspective of a miner, day trader, long-term investor, and regular user.
Ethereum vs Bitcoin: For the Miner
Bitcoin has been operating based on PoW from the beginning. So far, no switch to PoS is planned. It means that miners may still take full advantage of mining pools and get rewards with the help of the processing power they generate.
At the same time, Ethereum has recently completed the long-awaited shift from PoW to PoS. Since September 6, 2022, users can no longer mine ETH. This merge separated Ethereum from Bitcoin and made ETH completely unsuitable for any mining purposes.
Still, investors with their coins can serve as validators and earn rewards in less energy-extensive ways. So, users willing to earn as validators have options to choose from.
Ethereum vs. Bitcoin: For the Day Trader
The vivid characteristic of a day trader is a large number of short-term financial operations based on intraday market price action. They intend to get relatively small but strictly controlled profit from daytime market fluctuations.
For such traders, the most profitable asset is the most volatile asset. From this perspective, both ETH and BTC are fine options. Some investors may even consider trading the ETH/BTC pair. So, there is no need to choose only one asset here.
Ethereum vs. Bitcoin: For the Long-Term Investor
In their turn, long-term investors hold the market position for an extended time. They purchase assets that may increase in their value over time and stick to them for years. Compared to intraday or emotional investing, this approach does not require close, constant attention to the market. But still, choosing a reliable asset is of outstanding importance here.
For reference, the cost of ETH, as of September 2022, is about $1,325, while BTC costs $19,256. Now, let’s review several predictions for Bitcoin and Ethereum to find out which coin may be a more profitable long-term investment:
- Priceprediction.com. This source expects BTC to triple its price and reach as much as $67,129 in 2025. At the same time, the prediction for ETH is equally positive. It sticks to about $4,953 in three years.
- Digitalcoinprice.com. Here, we get even more positive forecasts for both coins. $73,865 for BTC and $5,093 for ETH in 2025 are the potential prices for these assets, as per this statistical prediction.
Long-term investors will definitely enjoy 300%+ profitability on each of these assets. From this perspective, Ethereum and Bitcoin are equally excellent investment opportunities.
Ethereum vs. Bitcoin: For the Regular User
As practice shows, regular users in the crypto industry care about carbon emissions, transaction speeds, and transaction fees. From this point of view, Ethereum is definitely a winner. The PoS protocol cut carbon emissions by 99% compared to Bitcoin’s PoW.
As for high transaction speeds, ETH can process about 10-15 transactions per second (TPS). In its turn, BTC support about 7 TPS. In the real-world environment, it means that BTC transactions are confirmed within roughly 1 hour, while ETH transactions are several times less time-intensive. Moreover, with the introduction of PoS, Ethereum’s TPS is predicted to increase to 100,000.
Average transaction fees with BTC are about $1.5 as of September 2022. At the same time, one transaction with ETH costs about $1.9. The difference is quite subtle. Yet, your total transaction charges largely depend on the provider of exchange services. If you choose an affordable crypto exchange like Godex.io, you should be good with both options.
So Which One Are You?
Your choice depends on your goal. If you are a short-term or a long-term investor, you may go with any coin in this pair. As a regular user, you may like Ethereum more than Bitcoin. But if you are a miner, ETH is not an option for you.
Make a wise choice and always consider financial and security risks while going for a trade or an exchange.