Bitcoin vs. Ethereum
The world of cryptocurrency has grown exponentially over the last two decades. Ever since the inception of Bitcoin in 2009, more developers have started to take notice of blockchain technology and built applications around it.
One of the other very famous digital coins is Ethereum, the second-largest cryptocurrency to Bitcoin by market cap. This cryptocurrency is built on a blockchain that uses algorithmic consensus mechanisms to approve financial transactions through a network.
These digital assets have grown astronomically over the last five years, with Bitcoin reaching an all-time high of around $70,000 in November 2021. It is currently sitting at approximately $32,000, which is significantly low considering the coin was at its ATH only three months ago from the time of writing.
Why did it drop so low, you ask? There is something called a market cycle, and we would like to discuss that more.
The cause of the sell-off in the Bitcoin market is currently due to regulations that governments worldwide are trying to impose. However, it is good to note that this has been going on for years. It has always been something that has caused volatility in the market and is nothing to be concerned about.
You may be wondering, “since Bitcoin has dropped so significantly low, is it even worth investing in? Well, let’s get one thing straight!
Bitcoin, Ethereum, and any other cryptocurrency (an alt or meme coin) will never go away. Why is this, you ask? Well, ever since Satoshi Nakamoto introduced the open-source blockchain code to the internet in 2009, developers have been using it to make their blockchain networks.
The Future of Money Is Digital
The adoption of blockchain technology can provide a safer and anonymous financial ecosystem that can help people remain private and send money internationally within seconds.
Some of these blockchains, like Ethereum (ETH), use a consensus algorithm called proof-of-stake, and this takes a lot of operating power for people who mine the coin. In turn, this leaves you with higher costs (gas fees) when transferring money from one ETH account to another.
Ethereum has recently announced that they are working on Ethereum 2.0 to make the network more scalable and sustainable.
On the other hand, Bitcoin’s transactions are handled by a consensus algorithm called proof-of-work. The algorithm needs to calculate complicated numerical codes to confirm valid transactions, and this takes a lot of computing power, which is why there are colossal Bitcoin mines worldwide.
There is a rivalry between these two digital assets, with many investors opting to invest in Bitcoin for the long term. Some experienced investors and big hedge have large amounts of capital in Bitcoin and are currently buying this dip in the market.
If you consider investing in Bitcoin, there has never been a better time to get involved. An application like elitetradingclub.de can assist you in exploring the market and investing in it at your leisure.
What Next for Cryptocurrency?
Even though regulations are tightening and the value of these tokens have dropped significantly since their all-time highs, there is still no stopping developers from evolving the blockchain.
The plan is to have cryptocurrencies more in line with the decentralized future of finance.
There has also been a lot of hype around blockchain games and recent play-to-earn games, which has driven some altcoins to exponential heights.
Games like the Sandbox and its token SAND have grown to a market cap of $1,013,868,438.
There is just too much going on in the world of cryptocurrency for it to slow down anytime soon. That is one of the reasons there has never been a better time to invest in cryptocurrency.
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I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.