Bitcoin remains the undisputed king of digital currency but now in 2022, many investors are apprehensive about the original cryptocurrency’s ability to compete with the ever more sophisticated projects that are emerging. One such project is Cosmos.
Whereas Bitcoin is more or less limited to a means of value exchange, Cosmos has the rather more ambitious remit of providing an ‘Internet of Blockchains’ by offering a seamless platform for the various networks to interact. Given that interoperability and scalability are two of the biggest issues in blockchain today, Cosmos has a raison d’etre that is potentially very lucrative.
However, Bitcoin has been ‘dated’ by cryptocurrency standards for several years, especially after smart chains appeared in 2016, yet it has continued to dominate the market and is still the benchmark against which all other tokens are measured - when it comes to token value at least. So is it still too early to consider writing off BTC?
Most investors still have faith in Bitcoin, there can be no doubt of that, but the cryptocurrency market has become so diverse that most are now looking for ways to expand their portfolios - and smart platforms like Cosmos present the ideal opportunity.
In the following Bitcoin vs Cosmos comparison, we’ll not only weigh up what each project has to offer, we’ll also consider whether they may actually complement each other as part of a diversified portfolio. We’ll also hear from experts and analysts regarding what they think each token’s price movement could be in the year ahead.
Cosmos vs Bitcoin - The Key Differences
If we look at Cosmos vs Bitcoin from a technical perspective, then there really is no competition. The former is a far more advanced platform and has far more use cases within the blockchain industry. However, technical superiority does not necessarily count for much when it comes to a token’s price movement. One only needs to look at the top ten or twenty tokens to realise this.
So can Bitcoin really compete against a much newer and technically more ambitious project like Cosmos? Before we get on to answering this, we need to take a look at exactly what each platform can do, as well as a few key tokenomics.
Bitcoin was the first cryptocurrency and more or less single-handedly introduced the world to the potential of blockchain technology. Following the emergence of the Satoshi Nakamoto white paper, Bitcoin launched in 2009 and quickly became on of the hottest investment prospects in existence.
Bitcoin was the first truly viable decentralised payment system and at one point was lauded as a potential replacement to traditional payment means. However, the reality is that BTC transactions take far too long for it to ever be an efficient means of payment on a commercial scale.
Despite being relatively dated by today’s standard, Bitcoin continues to provide massive returns for investors and remains the yardstick against which the wider market is measured. Whilst the platform cannot support the latest smart contract innovations, such as DeFi and NFTs, it's worth remembering that it is still well ahead of the pack when it comes to market capitalisaiton.
Transactions and Speed
It may have been a revolutionary new technology when it was first launched but by today’s standards Bitcoin is positively sluggish when it comes to transaction rates. In fact, the networks slow speed, lack of scalability and huge power consumption are often cited as issues that will hamper future growth and potentially even see Bitcoin eventually fall into relative obscurity.
Bitcoin relies on the proof-of-work consensus mechanism, wherein miners validate each new block and are rewarded with BTC. Whilst this may be an extremely secure system, it does limit Bitcoin to around 5 transactions per second. This compares to around 10,000 TPS for Cosmos.
To cut a long story short, Bitcoin isn’t likely to ever become a widespread means of payment, which somewhat limits its real-world use cases. However, this has been true for a number of years and it has yet to have any noticeable drag on BTC’s price movement.
Supply and Demand
Whilst Bitcoin may not have the potential it once did, what really counts for investors are the usual fundamentals - namely supply and demand. Bitcoin actually has a limited overall supply - capped at 21 million tokens. In addition to this, it also has an in-built deflationary mechanism, which means the scarcity of BTC increases over time.
When Bitcoin miners successfully add a block to the chain, they are rewarded with BTC - this is how new tokens are released into the ecosystem. However, since Bitcoin launched, the reward has halved at regular intervals, meaning fewer tokens are released.
In addition to the diminishing reward for miners, Bitcoin investors have a tendency to hold on to their tokens. This means that the supply of free BTC may eventually fail to meet demand which should, in theory, drive up the price of the token.
Cosmos touts itself as the Internet of Blockchains and is effectively an interoperability platform designed to simplify transactions and interactions between the various blockchains. In this sense, it can be thought of as a kind of conjunction protocol.
The project’s inner workings are inevitably far too complex to be broken down here, but there is effectively a primary blockchain connecting different ‘Zones’, which themselves are other blockchains added to the protocol. The whole thing is then underpinned by Tendermnint, the proprietary consensus mechanism operating the Cosmos infrastructure.
It’s enough to understand that each blockchain added to the protocol, Dogecoin or Ethereum for example, will have its own Zone. Each Zone works independently, carrying out its own tasks and functions, but the Cosmos Hub then keeps track of their states.
Powering the impressive functions of Cosmos network is ATOM, the platform’s native token. It has three main use cases. Number one, ATOM can be used for paying fees on the network - which is of course pretty standard. The token is also used in the execution of smart contracts and used in staking mechanisms.
Those staking their tokens are also rewarded with additional ATOM. The more ATOM a user is prepared to stake, the better their chance of being selected as a validator node, as the consensus protocol selects those in the top 100 in terms of the amount of ATOM they can put up. If there are any issues with the selected validators, then their ATOM is held whilst an investigation is carried out.
Finally, ATOM is used to govern the Cosmos protocol. Holders can vote on potential changes to the network and have a say in how the project is run.
The total circulating supply was 286,370,297.
Supply and Demand
At the time of writing, the total circulating supply of ATOM stood at 286,370,297. It should be noted, however, that ATOM differs from Bitcoin in that it is not intended to mimic or stand-in for fiat currency. The ATOM token exists to power the Cosmos infrastructures.
Whereas BTC has in-build deflation, ATOM is an inflationary token. Put simple, ATOM is a staking token, meaning new tokens are minted as rewards for those who commit their existing ATOM. This inflation means that those not participating in the running of the blockchain are effectively ‘punished’ as their tokens will become less valuable as time goes on and they will not offset this inflation with rewards for staking.
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Cosmos vs Bitcoin: Which Is The Better Investment?
At first glance, it would appear that Cosmos has the edge when it comes to longevity. There’s no denying that it’s a more technically advanced platform and has a huge amount of potential, given the function it serves.
But it's also very much true that Bitcoin is the more established project and has far higher value overall. It’s also fair to say it has more interest from mainstream investors at this stage - though this could change in the near future.
To build an idea of what each token might be worth in 2022, we need to look at a few different information sources. Whilst this can’t tell us what will happen in future, it will certainly allow us to make more informed decisions with regards to investment.
Bitcoin Vs Cosmos: Price History
Before we look at price predictions for Bitcoin vs Cosmos, the first thing any sensible investor should do is take a look at how each token has performed leading up to this point. After all, it is this data that analysts use to generate their forecasts.
Bitcoin has seen some truly impressive price movement over the years. It was almost worthless as a nascent technology in 2009, but by 2013 the price of a single BTC token stood at an impressive $1,242 - having turned many early investors into multimillionaires in just a few years. In this sense, Bitcoin single-handedly created the massive investor interest that has surrounded digital currency ever since.
Bitcoin had a few peaks and troughs over the coming years, but things really took off across 2017 and BTC was trading at a then-unprecedented price of $19,783 going into 2018. However, this bubble famously burst in the first quarter of the year and BTC tumbled to $3,430 by December in what was arguably the most significant downturn the cryptocurrency market has seen to date.
However, Bitcoin didn’t take too long to recover and by the time 2021 arrived, it had reached a token price in excess of $23k. Then the market exploded. In January, BTC soared to a then-record high of $40,000. It then smashed this record by reaching $64,804 just a few weeks later.
These price increases were replicated in April and May before regulatory rumblings caused the market to crash going into summer, with Bitcoin falling to $31,399. However, this downturn was very short-lived and Bitcoin was soon out to break records again, hitting its all-time high, of $69,044 in November.
At the time of writing, BTC was trading at $36,265.75 per token.
ATOM came along some ten years after Bitcoin, so there isn't quite the price history to look back on. The token hit the market in 2019 and initially traded at around $2.75 per token. It experienced substantial volatility in the first couple of weeks, reaching as high as $6.42 but bottoming out at $3.40 and bouncing between these two figures for a month or two.
The token then went into steady decline across the summer of that year, with very few upswings. It levelled out at $1.95 in September, before things started to turn around. By the end of 2019, ATOM had gone back past $4 and held out above this mark for the first quarter of 2020, before things again took a downturn and Cosmos dropped in value to around $2.30.
However, the token had regained much of its value when 2021 arrived and starter the year at $6.46. It then benefitted from several significant market upswings, led by Bitcoin. In February, ATOM soared to $25.13 as the market exploded. Following a few volatile weeks, it then saw two further price surges, culminating in it reaching $29.36 in May.
A market downturn saw ATOM sink as low as $11.05 over the summer, but things quickly picked up again and the coin soon soared past its previous milestones, hitting a record high of $44.42 in September. It peaked again in October, though not quite hitting its record price, then went into a period of decline.
At the time of writing, ATOM was worth $36.31.
Bitcoin Vs Cosmos: Future Predictions
Taking a retrospect of each tokens price movement can tell us a lot about their potential and how they move in line with the wider market, but ultimately it's the future that investors are concerned with. Whilst cryptocurrency price predictions can never be guaranteed, they are nonetheless a valuable information source for planning an investment strategy.
Bitcoin price predictions are almost invariably positive - which is, of course, a good sign for the original cryptocurrency but also the market in general, as typically a good performance from BTC filters down to the wider market, as we saw with the upswings of 2021, most of which were led by Bitcoin.
DigitalCoinPrice is one platform that is highly optimistic about Bitcoin’s price potential for 2022. It has the token undergoing several bulls in the coming months and by February its token price is expected to have almost doubled, reaching a potential high of $51,327.06. However, a fair bit of volatility is then expected and BTC will experience a downturn across the summer. However, by December it is predicted to be back at $50,347.68 before continuing to grow into 2023, hitting $64,415.16 in the first months of the year.
WalletInvestor echoes DigitalCoinPrice’s positive Bitcoin price prediction for 2022, although it expects things to be slightly slower. According to its technical analysis, BTC will hit an average trading price of $48,477.10 by the end of February. It will then continue to build on its success over the summer months and by the end of the year BTC is expected to be trading well over the $69k mark.
Finally, the Economy Forecast Agency has lower expectations when it comes to Bitcoin’s price movement in 2022. Its data suggests that BTC could be up by as much as 22.78% by the end of March 2022. The summer months are then expected to be a volatile time for BTC, but by the end of December, things are expected to level out, with the token trading above the $30k threshold.
These predictions are just that - predictions. They are not guaranteed and shouldn’t form the sole basis of an investment plan. However, the similarity between them is certainly a positive sign for Bitcoin.
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It seems that Bitcoin price forecasts are almost unanimously predicting growth. But what of Cosmos? Forecasts for ATOM face different challenges as the project has rivals that could edge it out in the coming months, but it seems that most analysts are optimistic about its future.
Looking at DigitalCoinPrice, for example, we can see that the platform has ATOM up by approximately 40% before the end of April 2022, which would be a pretty impressive price movement by anyone’s standard. However, going into summer it is expected to have reached $54.08, which would equate to almost 50% growth. Things are then expected to turn against ATOM for much of the latter half of the year, but by early 2023 it could be trading at a high of $63.68.
Elsewhere, WalletInvestor is expecting more stable growth for ATOM. Its technical analysis also suggests the token will be up by around 30% come May 2022, trading at around $47. However, the summer months will then be relatively stable and by the end of the year, ATOM is expected to be closing in on $59.93 per token.
TradingBeasts sees things slightly differently. It has Cosmos experiencing very slow growth throughout the year. However, this downward trend is expected to grind to a halt in the latter half of the year and ATOM will eventually creep back past its currency price and finish the year up by around 7.3%. This slow upward trend will then continue across 2023 and 2024.
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Cosmos Vs Bitcoin: What the Experts Say
Expert opinions can tell us a lot about current sentiment towards a particular cryptocurrency or blockchain project. Whilst they should never be considered any kind of investment advice, they are another information source that can occasionally reveal details that market analysts may miss.
When it comes to Bitcoin, there have been reams of opinions over the years. Recently, Elon Musk’s Tesla showed its support by investing some $1 billion in BTC. Galaxy Digital’s Mike Novogratz has also been a long-time supporter. He believes that demand from institutional investors will continue to drive the price of BTC up:
Every single bank is working on their own crypto project, how they can get bitcoin to their wealth clients,” Novogratz said. “I think a lot of clients that didn’t buy it the first time will see this as an opportunity to buy it and get involved.”
When it comes to Cosmos, the most prominent voice of support appears to be cryptocurrency market expert and popular trader, Michael van de Poppe. He believes ATOM has what it takes to see off its competition and its price movement points to growth. “If we take out the previous all-time high for Cosmos, I think we’re going to accelerate quite nicely, and then we’ve got $75… as the target point, and the second one is $100,” he said.
Cosmos Vs Bitcoin: Conclusion
At this stage, few people would argue that Cosmos is a far more technically advanced project than Bitcoin - and so it should be, having launched a decade after the original cryptocurrency. However, despite having a genuinely intriguing use case, ATOM is very far from rivalling BTC when it comes to value.
Bitcoin still dominates the cryptocurrency market and this doesn’t look set to change in 2022, so despite being somewhat dated by today’s standard, it still stands as a solid investment opportunity and arguably a more stable option by industry standards, whereas Cosmos is something of an unknown quantity by comparison.
Looking at Cosmos vs Bitcoin from a price prediction standpoint, it appears that both tokens are poised for growth in 2022, although that latter seems to be facing a slight downturn throughout the summer months. That being said, by 2023 both tokens are expected to be worth significantly more than they are today, so both could be said to be a good investment at this point.
It’s also worth bearing in mind that Cosmos and Bitcoin don’t compete in the same space. In fact, they would both be worthy additions to a diversified portfolio. Cosmos has a comparatively low price point so it could even be seen as a worthwhile punt for investors looking to expand on their current investment strategy.
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Bitcoin vs Cosmos - which is better?
Comparing Bitcoin to Cosmos is something of a fool's errand. The reality is that they serve two very different functions - not to mention Bitcoin being about ten years older than Cosmos. When it comes to technical particulars, Cosmos is a lot ‘smarter’ than its predecessor, but when it comes to total value, then Bitcoin is the undisputed winner here.
Is Cosmos going to explode in 2022?
Whilst no one can say for sure what’s going to occur in the future, most analysts believe that 2022 will be a good year for ATOM. It's never wise to assume you’ll see returns, but there are several Cosmos price predictions that suggest the token could all but double in value over the next 12 months.
Where can I buy Cosmos?
If you want to invest in Cosmos, the good news is that the token is widely listed and you’ll find plenty of exchanges that will allow you to purchase the token. If you’re new to cryptocurrency, then we’d recommend checking out eToro, as it's one of the most trusted names in the industry and is particularly regarded for its approachable trading platform.
Which crypto should I buy in 2022?
If you’re looking to expand your cryptocurrency portfolio in 2022 then it’s important to do plenty of research. The market is likely to see another positive year but some tokens will inevitably perform better than others. Bitcoin remains a staple for any portfolio but for diversification it's also worth checking up-and-coming projects like Cosmos, Algorand or SafeMoon.
Is Bitcoin losing popularity?
Bitcoin is the number one cryptocurrency and has been for many years, but as it approaches 13 years since the token’s launch, many have suggested that Bitcoin’s lack of scalability and high resource requirements mean that it is now dated technology. That being said, this has been said for a few years now and Bitcoin shows no sign of loosening its grip on the market.