For all the crypto lovers and traders, 2021 has been a wonderful year. If you take a clear look at the numbers, you can observe that their price has almost doubled. Even some of the small cryptocurrencies have seen a rapid price rise.
But we have successfully closed 2021 and entered into 2022. Many experts are predicting that 2022 is going to be a great year for all crypto traders and this is just one of the reasons investors should choose Bitcoin.
Even when the year is going to be fruitful, you should be able to pick the right cryptocurrency for investment. Most of the crypto investors show interest in Bitcoin and Ethereum.
That is because they are the top two cryptocurrencies out of the 17000 plus coins available. But even with these two crypto coins, there is a lot of confusion about which is a better long-term investment in 2022.
Let us have a look at a few factors that help you understand which is the right choice for you:
Their performance in 2021:
We are just done with 2021 and cryptocurrencies, Bitcoin, and Ethereum have done very well. So, let us just compare them:
At the beginning of 2021, the price of Bitcoin was around $28,878 and by the end of December 2021, it was almost $48,882. That means it has raised by 69.2 percent in one year. If you take a look at Ethereum, it also starts at $733 and it closed at almost $3956. It clearly shows that there is a rise of 439 percent in that year.
In the same year, both the coins have hit their all-time high prices. Bitcoin’s all-time high was $69068 and Ethereum was $4874. That means, they have closed at a quite lower price by the end of the year. But still, they were in profits. So, if their performance or price is the factor to determine which is the right coin to invest in, then Ethereum is a perfect choice.
Other factors one should consider
One of the best things about Bitcoin is it has institutional adoption. When we say institutions, then you can consider celebrities and big companies. If they are willing to buy a large number of coins, then the price of the cryptocurrency will automatically go up. For example, when Telsa bought Bitcoin worth $1.5 Billion, then the price when high in just 24 hours. The rise was almost 10 percent and that is huge in 24 hours. As more and more institutions start buying it, its value also increases. That is the power of institutional adoption.
The best for developers:
One of the best points about Bitcoin is many investors use it as a means of sending money. Its main focus is on that factor. But when it comes to Ethereum, it focuses mainly on developers. Its blockchain is popular across the world. Many crypto coins use this blockchain for building and the payment fee is done with ETH. As more and more developers are using this cryptocurrency, its price is increasing.
Bitcoin’s deregulation is one of the most important factors that affect its price. This coin is in the crypto market for 13 years now and it still does not have any regulation. It is not just Bitcoin, even Ethereum and other cryptocurrencies face the same problem. Many countries are still in the discussion of whether Bitcoin can be considered as a form of payment or currency. If it is accepted by more countries and their governments, then people will start buying it with confidence. That will help in raising its price.
Another important factor that helps in making a decision is the operational issues. Many people think that it is a perfect coin, but no. It is not. There are still many operational issues to address. One of those factors is its transaction speed. As many people started using the same blockchain, it is getting very slow. Also, the transaction fee is quite high for Ethereum. Due to this problem, many people prefer Solana over Ethereum. That is the reason Solana is called Ethereum Killer.
So, these simple points can help you decide which is the best cryptocurrency to invest in – Bitcoin or Ethereum. Your research will also play an important to make the choice.
Support us by following us on Google News to ensure you don’t miss out on any future updates.
Send comments, press releases, tips, and guest posts to email@example.com.