On the surface, ApeCoin and Bitcoin are two very different projects. The former was launched just this year, whereas BTC is now into its second decade. However, there are also a few similarities between these two projects–not least the fact that they both largely look to trade on popularity and an established brand name.
It looks like 2022 is going to be another exciting year for cryptocurrency with new projects emerging and an ever-expanding range of industries that are now powered by blockchain. So does a coin launched in 2009 and without smart capabilities still have a place in the modern cryptocurrency world?
ApeCoin is arguably the hottest new cryptocurrency and has been making headlines since its launch. An offshoot of the hugely popular Bored Ape Yacht Club NFT collection, ApeCoin already had a ready-made fan base when it was first released. However, make no mistake, Bitcoin continues to be the number one cryptocurrency by market cap and has seen a surge in investment itself across the opening months of 2022.
The trick for investors is choosing which token is likely to offer better investments in the mid to long term. In the following ApeCoin vs Bitcoin comparison, we’ll be looking at the potential of each of these projects and considering what sort of performance we are likely to see in the near future. We’ll be looking at expert price predictions to try to help investors incorporate either token into their existing strategy.
ApeCoin VS Bitcoin - The Fundamentals
We’ve mentioned that there is the odd similarity between ApeCoin and Bitcoin, but from a technical standpoint, they are very different beasts. Ultimately, market sentiment is likely to be the driving force behind each project’s price movement, but before we can look at price data we need a basic understanding of how these projects work and what it is they bring to the industry.
Anyone with even a passing interest in blockchain will know that NFTs have been one of the major trends of the last year or so and the Bored Ape Yacht Club is one of the most popular marketplaces in the world. In fact, the BAYC could even be said to have been the driver of the avatar NFT craze, along with Crypto Punks. Even those with little interest in crypto have probably seen apes in their social media feeds.
ApeCoin is an ERC-20 token that has been touted as the coin that will help deliver the age of web 3.0. Initially, the token was dropped amongst BAYC members, but now it is available to buy on most major exchanges. The developers behind the ape project, Yugalabs, claim to have big plans for ApeCoin, which is currently used as the governance token for the BAYC.
ApeCoin could one day be used as a token for metaverse experiences, access to play-to-earn games and NFT auctions, all of which could be future developments within the APE infrastructure.
ApeCoin has been touted by its developers as “a token for culture, gaming and commerce,” but as things stand it simply serves as a governance and utility token for the ApeCoin project. Essentially, it was launched as a means of further decentralising the BAYC and other services that will be developed by Yugalabs.
At this stage, ApeCoin appears to be similar to meme tokens like Shiba Inu and Safemoon. It features the now-infamous Ape branding and it would appear that it is predominantly trading on the popularity of its brand, with a keen focus on building an online community. In fact, one of the current board members is Reddit founder Alexis Ohanian.
The Ape Foundation is the overarching organisation that oversees ApeCoin DAO and will ultimately offer a platform for developers to build apps and programs that are driven by ApeCoin.
The ApeCoin token
We’ve already noted that ApeCoin is an Ethereum based cryptocurrency, which means it has similar characteristics and performance to any other ERC-20 token. Unlike BAYC, ApeCoin wasn’t actually developed by Yugalabs. Instead, it was launched by the ApeCoin DAO, a new decentralised, autonomous organisation created to govern ApeCoin and steer the direction of the project.
Because ApeCoin is an ERC-20 token, it can be used across numerous other cryptocurrency projects–whether they have any links to the Bored Ape Club or not. In addition, ApeCoin appears to have been making inroads into real-world transactions, with some US breweries and even a real estate firm accepting payments in ApeCoin.
Read Also: Pros And Cons Of Investing In ApeCoin
Bitcoin is the granddaddy of all cryptocurrencies, having launched way back in 2009 when blockchain was a term only known to a small group of tech heads. When it first launched, many speculated that digital currency would one day replace fiat currency and Bitcoin was seen as a major step forward in the world of information technology.
Whilst Satoshi Nakamoto’s original whitepaper pitched Bitcoin as a decentralised alternative to cash, ultimately the resources required to process BTC transactions meant this was unlikely to ever become a reality. Paying for small retail transactions with Bitcoin simply isn’t cost-effective enough to be viable on a commercial scale.
Yet, despite being unable to truly fulfill its original use case, Bitcoin continues to be the most sought after, most valuable and most talked about cryptocurrency on the planet. It is also the most popular digital asset for large organisations and institutional investors to buy holdings in.
Transactions and Speed
The reason that Bitcoin cannot support every day retail transactions has to do with the way blocks are verified. Bitcoin relies on the proof-of-work consensus mechanism, which is fairly dated by today’s standards and requires a huge amount of computational power and energy–with Bitcoin’s power consumption equating to that of a small European nation’s.
It takes roughly ten minutes for a new block to be added to the Bitcoin network, which allows for roughly five transactions per second to be processed. By comparison, Ethereum can put through around 20 TPS and payments platforms like Visa and Mastercard can handle almost 2000.
Because of its slow transaction rate and high energy consumption, Bitcoin is now largely seen as a kind of digital gold–a place for investors to put their cash in the event of a downturn in the traditional financial and equities markets.
The BTC token
At this stage, most people are vaguely aware of how the Bitcoin system works. Miners on the network compete to solve complex equations to add new blocks to the network. When they are successful, these miners are rewarded with Bitcoin. This is how new tokens are minted and released into the system.
The block reward that miners receive has been halving at various intervals. In 2012, miners received 25 BTC for adding new blocks. In 2016 that number was cut to 12.5 BTC and in 2020–the most recent halving–it was reduced to 6.25 BTC. This means that fewer and fewer tokens are being released into the system as time goes on.
In addition to the diminishing block reward, the total supply of Bitcoin is also capped at 21 million tokens. This means that BTC is increasing in scarcity which, in theory, should push up its price if demand for the token remains high. Finally, large scale investors tend to buy their BTC to hold long term, which also means it has been taken out of open circulation.
Check Out: The 5 Best Ways To Buy Bitcoin (BTC)
ApeCoin vs Bitcoin: Which Is The Better Investment?
So now we’ve covered the fundamentals of what each project actually is, it's time to look at ApeCoin vs Bitcoin from an investment perspective. In order to do this, we need to move away from technical particulars and start working with price data, as this is what will allow us to understand predictions from the analysts we will look at below.
Bitcoin Vs ApeCoin: Price History
Price predictions are almost entirely generated from existing data–i.e price history. By looking back at how each project has performed in the past, we get a better idea of how they move in relation to each other and the wider cryptocurrency market. Price history may also suggest how these projects are influenced by particular market forces.
First thing’s first, ApeCoin was only released in 2022, so there is very little previous data to go on. In effect, it is something of an unknown quantity as most cryptocurrencies go through fairly atypical price movement in their first few weeks. However, the existing price data is still the best information we have to go on when making future predictions.
ApeCoin hit the market at around $7.40. This is a reasonably high entry price, compared to many other tokens, and is more than likely due to the fact that ApeCoin already had a solid following in the form of the Bored Ape Yacht Club community. Just days later, its token price surged to $17.17 before dropping back below $10. However, before March was out the token had once again rallied to a high of $15.37, more than doubling in value in its first month of trading.
APE stayed within narrower bands for the first half of April. It declines slightly in the opening days of the month, trading between $10 and $11 before inching up and generally holding a trading price above $11. In the latter half of the month, the token entered its most significant bull to date. It hit $17.30 on 21 April before a second rally took APE to its all time high of $26.70 in the last few days of the month.
The arrival of May then saw a sharp drop in APE’s trading price, with the token sinking back to $15.84 on the first day of the month. Unfortunately, the next day saw ApeCoin dropping in value again. At the time of writing, the token was trading at $14.39.
Bitcoin’s price movement was one of the things that helped propel blockchain into the mainstream, as early investors ended up seeing returns equating to tens of thousands of percent. Having been worth virtually nothing upon launch, BTC had surged in value to over $1,242 by the time 2013 arrived.
As the market gathered pace and new crypto projects were launched, interest from mainstream investors increased and BTC continued to rise substantially in value. By the time 2018 arrived, the token had reached an average trading price of $19,783. However, it turned out that Bitcoin couldn’t sustain such unbridled growth and that same year things came crashing down, with BTC dropping to $3,430 before the year was out.
The 2018 downturn inevitably burned a few fingers, but it wasn’t long before investor interest returned. By the time 2020 arrived, the market had bounced back and Bitcoin was trading over $10k once again. This helped to reassure investors that there were still profits to be had from crypto and in 2021 things went to a whole new level.
February 2021 saw a major market upswing that carried BTC to an unprecedented $64,804 per token. The entire market then saw a surge in investor interest and in the latter half of the year several tokens hit record highs–with Bitcoin leading the way and reaching $69,044 in November.
When 2022 arrived, however, the market went into a sudden downturn with prices sinking across the board. Bitcoin bottomed out at $35,180 in January before things gradually started to creep back up. Prices have since cooled again and at the time of writing BTC was trading at $38,233 per token.
Bitcoin Vs ApeCoin: Future Predictions
Price history should give you an idea of roughly how each token’s price has moved in relation to the market, as well as what each one's high and low price barriers are. However, ultimately investors are more interested in what will happen in future. For this, we need to turn to the forecasts of top market analysts.
We’ve already pointed out that ApeCoin has very little previous price data, so the price predictions we encountered are built on limited information. However, it appears that many platforms believe APE has a bright future ahead.
DigitalCoinPrice, for example, has APE climbing fairly steadily over the coming years. Naturally, the token is likely to experience fairly high volatility but its average value will increase to $19.11 by the end of 2022, climbing to $21.08 over the course of the following year. In 2024, DigitalCoinPrice predicts APE will climb past the $25 mark and could even reach as high as $30 as early as 2025.
Elsewhere, WalletInvestor is also optimistic about ApeCoin’s future. Its technical analysis suggests the token could reach $25 by the end of 2022–which would mark growth of over 70% on today’s price. The platform then expects 2023 to be a successful year for APE, potentially reaching an average trading price of $30 by the end of the year. By the time 2024 draws to a close, WalletInvestor believes APE has the potential to reach $50 per token.
Surprisingly, even TradingBeasts, which is usually conservative with its forecasts, is predicting fairly solid growth for APE. It has the token growing by as much as 40% across the remainder of 2022 before continuing on an upwards trajectory across 2023. By the time 2024 arrives, the platform expects APE to have an average trading value of $30.22, which means it would have doubled in value across less than two years.
Read Also: ApeCoin (APE) Price Prediction
Many leading analysts have had to revisit their Bitcoin forecasts throughout 2022, as the market has seen some unusual price movement. However, overall it appears that most are predicting renewed growth for BTC over the coming years.
DigitalCoinPrice is backing Bitcoin for the second half of 2022, predicting that BTC has shaken off the downturn that struck at the start of the year. It has Bitcoin reaching $49,743 as an average trading price by the end of the year. It then expects Bitcoin to continue growth well into 2023, reaching a potential average of $55,530 by the end of the year.
Elsewhere, WalletInvestor is also positive about Bitcoin’s future. Its figures suggest BTC will climb back above $40,000 before the end of 2022 and 2023 could see it hit a new all time high, as the platform is predicting a maximum trading price of $82,478 come December. By the time 2025 arrives, WalletInvestor believes BTC could have finally broken the $100k barrier.
Finally, TradingBeasts sees things somewhat differently from the other two Bitcoin forecasts we have looked at. Its analysis has BTC losing significant value over the next couple of years, potentially dropping by as much as 28% come 2023. However, things will start to pick up a year or so later and by the time 2025 draws to a close, Bitcoin is expected to be worth an average of $70,210. If this prediction is to be believed, it would appear Bitcoin should be seen as more of a mid-to-long term investment.
The forecasts we have looked at are based on analysis of existing price data, but ultimately they are guess work. Whilst it certainly bodes well that all of the analysts consulted are pointing to growth overall, there are no guarantees that any of these predictions will prove accurate.
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ApeCoin vs Bitcoin: What The Experts Say
No matter who they come from, expert opinions are just–opinions. However, hearing from cryptocurrency and tech experts on what they think the future holds for a particular project can provide valuable insight into how that project is viewed by the wider business world.
Bitcoin is arguably the favourite cryptocurrency amongst large scale investors. It has been backed by Elon Musk, whose Tesla firm added almost $1bn worth of BTC to its portfolio early in 2021. Galaxy Digital boss Mike Novogratz is also a vocal supporter of Bitcoin, recently comparing it to gold as a ‘safe haven’ for investors looking to hedge against economic downturn.
ApeCoin is a newer token so hasn’t quite earned the reputation that Bitcoin has, but Dimitrio Salampasis, a FinTech speaker and lecturer at Swinburne University of Technology, believes that big things are on the horizon for APE and has predicted the token will peak at $45 in the near future. However, he also believes that it will be worth just $10 by 2030.
ApeCoin vs Bitcoin: Conclusion
Having taken a closer look at ApeCoin vs Bitcoin it would seem that either project has the potential to yield decent returns for investors. ApeCoin is the new kid on the block and already has a following thanks to the Bored Ape Yacht Club. Similarly, Bitcoin is THE biggest name in the cryptocurrency space. As such, both tokens have already built a certain degree of momentum.
Bitcoin undoubtedly has the bigger following from the world of business and finance, but ApeCoin is arguably targeting a younger, more socially engaged market. To be fair, neither project has a particularly unique use case, but we know that this does not necessarily mean much when it comes to token price.
The price predictions we looked at for ApeCoin vs Bitcoin all point to growth–albeit with some divergence on when growth will occur and how sustained it will be. Ultimately, the information we have to go on suggests that either of these projects could have a place in any crypto investment portfolio.
Realistically, ApeCoin is the bigger risk at this stage, as it is a new token that is riding the wave of the NFT trend–and no one can know if that trend is here to stay or not. However, the fact that it is a new token also means APE also has potential for substantial growth. As always, investors will need to keep a close eye on the market and get a feel for general sentiment towards each project by engaging with the wider crypto community.
How To Invest In ApeCoin and Bitcoin In 2022
Whether you want to buy ApeCoin or Bitcoin–or both, you’ll need to find a broker that lists these tokens. If you’re new to the cryptocurrency market, then we’d recommend checking out eToro. Not only is it one of the leading names in retail investing, but it has an innovative trading platform that is suitable for both novice and more experienced investors.
Opening an account with eToro can usually be done within a few minutes–you’ll just need to verify a few details to confirm your identity and this is usually done automatically. Once you’re up and running, you’ll have access to eToro’s impressive range of trading tools as well as a treasure trove of information and reports on the cryptocurrency market and trading in general.
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Bitcoin Vs ApeCoin - FAQ
What is ApeCoin?
ApeCoin is a relatively new token that has been launched to support a range of products operating under the banner of Ape Labs. An offshoot of the Bored Ape Yacht Club, ApeCoin has been touted as a cryptocurrency for web 3.0 services–a token that will eventually support everything from play-to-earn gaming to digital art NFT marketplaces.
Why is ApeCoin in the news?
ApeCoin has been making waves recently following a substantial price increase at the end of Q1 2022. The token is a spin off of one of the world’s most popular NFT marketplaces–the Bored Ape Yacht Club. As such, there is a fair amount of interest surrounding this token and many have picked it to be one of the most promising cryptocurrencies of the current generation.
Where can I buy ApeCoin?
Despite having only hit the market in March 2022, ApeCoin is already pretty widely listed and anyone looking to acquire some token will find they have quite a few options. If you’re in the market for a new broker, then we’d recommend checking out eToro. Not only does the platform list APE, it also has one of the most approachable trading platforms you’re likely to find.
Is Bitcoin finished?
Bitcoin is the oldest cryptocurrency out there, having launched way back in 2009. It's fair to say that, from a technical perspective, Bitcoin was surpassed a long time ago. However, it remains the biggest cryptocurrency by market cap–by a considerable margin–and is easily the most talked about token worldwide. As such, investors shouldn’t count out the original cryptocurrency just yet. In fact, it has been pegged for significant growth in the coming years.
Does Bitcoin offer big returns?
Many newcomers to the cryptocurrency market are enticed by stories of tokens that surge in value by several thousand percent, in some cases overnight. Whilst this does indeed happen on occasion, such rallies are notoriously hard to predict. Bitcoin is less volatile than many altcoins. Yet, whilst its days of overnight price explosions may be behind it, the original cryptocurrency still offers excellent returns for those who are prepared to play the waiting game.