Bitcoin or Ethereum: what to choose for investment and mining?
The cryptocurrency market offers many assets, but bitcoin and etherium remain a key elections for investors.
One acts as a digital gold with limited emission, the other-a platform for smart contracts and decentralized applications.
Bitcoin attracts with its stability, and the etherium - technological capabilities and great growth potential in the future.
At the same time, mining requires significant investments, while ETH can no longer be mined after the transition to POS.
Capitalization and fundamental differences
When Bitcoin only appeared in 2009, no one could predict that he would become a financial phenomenon comparable to gold. Today, its capitalization is about $ 1.9 trillion, which makes the BTC the most reliable crypto acting.
On the other hand, the etherium, launched in 2015, gained popularity thanks to smart contracts, which became the basis for the whole industry Defi, NFT and Web3. Now its capitalization reaches $ 318 billion.
The limited emission of Bitcoin makes it an analogue of gold, while the etherium functions as a digital platform for applications. If the BTC is a safe in which investors keep value, then ETH is a whole economy where the money works and benefits.
Which of the cryptocurrencies is more profitable for investment
Bitcoin, thanks to a rigidly set limit of 21 million coins, remains the main tool for hedging inflation. That is why large funds and institutional investors include it in their portfolios, considering BTC as a protective asset.
Ethereum, in turn, won the technology race. Its transition to Proof-OF-STAKE (POS) and the combination mechanism of part of the coins made it a deflation asset, which potentially increases its value.
Bitcoin is preferred by conservative investors who count on a stable increase in value, and those who believe in the development of digital finance and Web3 choose the etherium.
Which is better to minute: bitcoin or etherium
When Ethereum abandoned Proof-OF-Work in favor of Proof-Of-Stake, the traditional ETH mining went down in history.
Now, cryptocurrency can only be obtained in the Bitcoin network, but the difficulty of mining is growing, and the reward for the block is reduced every four years (halving).
To understand how profitable it was to extract bitcoin, we will take one of the most popular ASIC devices-Antminer S19 Pro (110 Th/S, 3250 W).
The complexity of the Bitcoin network continues to grow, reducing the profitability of mining, especially for individuals, and if the stability of electricity grows, this will also affect profit.
Nevertheless, BTC remains the only large cryptocurrency that can be mined in a traditional way.
What to choose: bitcoin or etherium?
Bitcoin is reliability and limitation, it behaves like digital gold , and its market is less susceptible to manipulation. Ethereum offers flexibility and innovation, allowing investors not only to store, but to earn on digital finances.
- If you are looking for a stable asset for storing value - choose bitcoin.
- If you believe in the development of technology, Defi and Web3 - Ethereum can give more profits in the long run.
- Bitcoin remains for mining, but its production requires expensive equipment. Among the alternatives, Monero (XMR) is beneficial, which can be mined on CPU and GPU, and Kaspa (KAS), effective for video cards.
Alephium (Alpha) and Ergo (ERG) are also promising, which continue to develop after the Ethereum departure with Pow.
Ultimately, the ideal strategy is diversification. Combining investments in BTC and ETH, you can benefit from their strengths.