What Is The Difference Between Bitcoin And Ethereum(3)?
2021.05.30 09:19
Is it worth investing in Bitcoin and Ethereum?
Sure! Bitcoin and Ethereum have their respective values, and it is worth investing in.
Reasons to Invest in Bitcoin
1. Fight against inflation
Local governments keep "printing money," cause a decline in the intrinsic value of traditional currencies, which in turn generates inflation. On the contrary, the total number of Bitcoins is only 21 million, which will never increase, and there will not be a relatively problem of currency devaluation. Therefore, Bitcoin can be used as a virtual currency against inflation.
2. Hedging the stock market
When the stock market is going to falling, we can consider investing in Bitcoin. Bitcoin is also called "digital gold", which can hedge the stock market like gold because the correlation between the stock market and Bitcoin is low. Even during a stock market plunge, the price of Bitcoin may go up.
Reasons to Invest in Ethereum
1. Intrinsic Value
When more people active on the Ethereum platform, the intrinsic value of Ethereum will increase. For example, in 2016, the total amount of Ethereum gas used to maintain the execution cost of smart contracts was about 650 million. In 2021, the total amount of Ethereum gas rises to 80 billion. The amount of increase is more than 120 times.
2. Leading position
Ethereum has a leading position in the field of smart contracts. Ethereum is the second-largest market capitalisation in the cryptocurrency market. It is also known as the "second-generation blockchain platform", second only to Bitcoin.
So, which one is more worth investing in depends on your analysis of the market!