Traditionally, Bitcoin has been the most talked-about cryptocurrency out there.
Bitcoin was a very innovative technology that had never been seen. Bitcoin served as a online currency that was used without any centralized authority, which is far different than government-backed currencies. Bitcoin has essentially been the catalyst that has the world talking about cryptocurrencies and blockchain technology. It is also one of the most expensive cryptocurrencies.
Ethereum came along later, and also included much of the same blockchain technologies.
Ethereum could act not only as a currency but also enabled smart contracts and decentralized applications, also known as dapps without any interference from outside parties. Many people are realizing that as far as potential investments, some of the alt-coins may be the way to go.
Clearly, the king of all alt-coins is Ethereum. Ethereum has even been discussed in many circles as a potential slayer of Bitcoin and its dominance. Without a doubt, both Bitcoin and Ethereum have had an amazing year and have climbed to new all-time highs. For those who argue that Ethereum may one day overtake Bitcoin, however, they may have a point. One day, it is likely that Ethereum will beat Bitcoin.
DeFi is becoming ever more popular in our world, especially as governments continue to spend and inflation continues to be a significant factor. DeFi crypto applications attempt to recreate financial systems such as currencies and exchanges.
The one difference is that there is no government interference. Ethereum has quickly become one of the most used DeFi cryptocurrencies, and this is one of the reasons that it is increasing its dominance in comparison with Bitcoin. It can be argued that Ethereum has more use cases than Bitcoin, which is essentially held by most people as a store of value, much like gold.
Another reason that Ethereum’s dominance is starting to grow is due to yield farming. Bitcoin can be held as a store of value, as does Ethereum. One big difference with Ethereum, however, is that it enables yield farming.
This is a process where people can invest and stake their Ethereum.
Basically, this is like earning money simply for holding Ethereum. Yield farming allows holders of Ethereum to be rewarded because other investors are able to utilize their holdings. It is comparable to an investor who buys a bond or who is earning interest in a savings account. The good thing about this is that the Ethereum holder is earning money from yield farming, while the value of Ethereum is also going up. While it has its ups and downs, as does Bitcoin, the person who is willing to hold Ethereum on a long-term basis will definitely gain some significant value to his or her portfolio.
One thing to consider when comparing Bitcoin with Ethereum is the market cap.
Bitcoin currently has the largest market cap of all cryptocurrencies, and Ethereum has the second largest. As of July 2021, the current market cap for Bitcoin is a whopping $603,637,991,090. Compare this with Ethereum’s market cap of $232,212,421,389, and there is a big difference.
The market cap of Bitcoin is about 2.5 higher than Ethereum. Essentially, this means that there is tremendous room for growth for Ethereum. As its market cap grows, so will the price of Ethereum. Basically, Ethereum is starting smaller and has more room to grow. If the market cap of Ethereum does reach and exceed Bitcoin, the potential return on investment for its holders could be astronomical.
In fact, many experts in the cryptocurrency industry are predicting that this will happen one day – that Ethereum will beat Bitcoin, and flip both its market cap as well as its price. Ethereum and Bitcoin are very different cryptocurrencies that do not really compete with each other, as they have different use cases. Nevertheless, Ethereum could still “compete” with Bitcoin in that its value could one day overtake it, in fact, that may be more likely than most people think.
The Ethereum vs Bitcoin debate has been picking up steam, especially this past year when many are seeing the growing use cases and growing market cap for Ethereum. The Ethereum vs Bitcoin also has led to the term flippening, which refers to the market cap of Ethereum overtaking that of Bitcoin. This flippening could make many Ethereum holders very wealthy. Some experts think that Ethereum could overtake Bitcoin within two to three years. In fact, there may be some substance to this argument, as many experts note that Ethereum has already overtaken Bitcoin in terms of total amount/dollar holdings on some exchanges. This appears to be something that has taken place in recent months.
Holding Ethereum also makes it easy to trade for other alt-coins on Ethereum’s ecosystem.
Some of these alt-coins have seen incredible growth in the previous year as well. A simple click of the mouse makes it easy to trade for said alt-coins on the Ethereum ecosystem and then when gains are significant, the owner can trade the alt-coin back for Ethereum and make it possible to hold even more Eth than he or she had before. While gas fees for doing so are generally small, one way to avoid the gas fees is to simply hodl (hold) the Ethereum. Knowing it’s possible to exchange for other alt-coins, however, is another benefit to holding Ethereum. It’s a good idea to do own’s own research, however, and search out coins with good fundamental analysis. As with any investment, it is wise for investors to do their own research and come up with their own conclusions and make their own decisions.
There is also some good news for those who are not sure they want to, or who do not have the means to invest a significant amount into Ethereum. It is not required that a person purchase an entire Ethereum Coin (though the more you buy, the more you will earn). In fact, a person could buy a fraction of Ethereum in any dollar amount that is wanted and still earn the same percentage of return. For example, if Ethereum goes up 50%, you will earn 50% of whatever amount of money you originally put in, and it is important to remember the yield farming earning potential on top of this also.
Based on the above data, along with all other factors considered, it is clear that Ethereum truly could overtake Bitcoin in terms of both market cap as well as value. While Bitcoin was one of the fastest-growing assets in history, Ethereum is picking up steam as investors realize what it can do. If one has missed out on buying Ethereum, the good news is that most experts agree that we are still very early in the game, meaning that Ethereum may still be in its infancy. A small investment now will likely yield huge gains if held onto for several years.
The “flippening” debate will one day be settled, with Ethereum likely coming out on top. This will make it possible for many new millionaires to be made. The key is to hold onto the Ethereum during its ups and downs. Whether Ethereum will hit $10,000 or $100,000 within a few years, nobody knows the exact amount. The important thing is to continue to invest. With no centralized regulations, cryptocurrencies have really been taking off. Dollar-cost averaging makes it possible for many investors to gradually increase their Ethereum holdings, as a little is added each month. Ethereum’s long-term potential is astronomical and now is the time to get in. Club Swan can help, because we are an alternative banking platform for crypto and traditional currencies combined with concierge services saving you up to 40% on travel, shopping, and experiences.