Bitcoin vs Ethereum: Which One Should You Buy in 2021?

[Shiftal]

If you are looking to start your crypto journey and looking for recommendations, most would advise you to invest in either Bitcoin or ETH or both. I would do that same. But, if you are confused between ETH and BTC for a better investment option, this article is all about Bitcoin vs Ethereum.

BTC and ETH are the two biggest cryptocurrencies in terms of market cap as well as popularity. But, there is a big difference between the two, which can probably help you make a decision. Continue reading to find out.

Bitcoin

Bitcoin is the cryptocurrency with the largest market cap. It recently touched the all-time high price of $55,000 and a market cap of $1 trillion. Launched in 2009, Bitcoin has a gross ROI of 34765%, i.e. it has given this much return since its launch.

However, the coin price and total market cap aren’t usually the best way to judge a cryptocurrency. In my opinion, the things that actually make a difference are the coin demand in the market, total supply and future applications.

Since Bitcoin is a payment currency, it’s practical uses are limited to digital payments. The bitcoin price increases every time some big organisation or entity decides that it will start accepting bitcoin for payments. For instance, Tesla recently invested a substantial amount in bitcoin with the possible intention of allowing Tesla buyers to pay in the digital currency. This, among other things, was the reason behind the recent boost in the coin price. Also, the bitcoin total supply is limited, which is another reason to hope for a significant boost in the price in the coming future.

Recommended: How to Buy Bitcoin in India?

Ethereum

ETH of Ether is the native cryptocurrency of the Ethereum blockchain, which was created with the sole purpose to promote the uses & futuristic value of blockchain technology. As a public blockchain, Ethereum allows developers to build their decentralized applications, smart contracts and DeFi projects on its platform.

Although, it was never about the price with Ethereum and the main focus was always the blockchain growth, the value of ETH grew substantially in just a couple of years from its launch. As of now, 1 ETH is worth over $1,486. According to the coinmarketcap website, the overall ROI of Ethereum is more than 52011%.

Recommended: How to Buy Ethereum in India?

Bitcoin vs Ethereum – price and growth analysis

If you simply look at the price, Bitcoin obviously takes the lead. The currency price of BTC is almost 30 times the price of ETH. But again, we also have to consider factors like the launch period and the overall growth & ROI, which is higher in the case of ETH.

If you had invested $1,000 each in Bitcoin and ETH at the time of their respective launch, ETH would have given a better return in less time.

Also, the price of Bitcoin is already very high and practically out of the reach of most first-time buyers. So, ETH makes an equally good yet much cheaper investment alternative, especially for beginners.

If we try to analyse the Bitcoin and Ethereum price growth trajectory, we will see that the stats are nearly the same. In fact, all the altcoins start pumping at the same time when the BTC price is taking a hike, and start dropping when the Bitcoin is falling. Take a look at the graphs (BTC vs ETH) below to understand the price movements of both coins.



As I said, both coins have nearly the same price movements. However, if you look closely, you’ll see that there are exceptions as well, i.e. times where ETH price rose even when BTC was falling and vice versa.

Conclusion – Should I Invest in ETH or BTC?

Well, if your budget agrees, I’d strongly recommend you invest in both ETH and BTC. This will not only ensure you have hands in the top two cryptocurrencies of our time but also will help maintain a diversified portfolio.

If you have to choose one, take a look at the use cases and future scope of each coin in order to figure out possible future returns. Bitcoin is more popular and has the backing of large investors, which means the coin price will continue to rise and may eventually cross the $100,000 mark. At the same time, it’s highly volatile, which means the risk is quite high.

ETH, on the other hand, is backed by a really powerful blockchain that is again supported by a community of millions of users and developers. It’s a strong project, which makes the coin strong. And with the upcoming launch of ETH 2.0, the possibility of a significant price hike cannot be denied.

That said, now is the best time to invest in your favourite cryptos. If you are looking for the easiest and best way to buy ETH or BTC, check out Shiftal, which is a Top P2P crypto exchange allowing users to buy/sell ETH and BTC directly with each other. No hassle, no high middleman cost and instant credits.