Bitcoin and Curve represent very different aspects of the cryptocurrency market but both are undoubtedly popular with investors at the moment. But can Bitcoin continue to compete with the newer, more advanced protocols like Curve?
It’s been an exciting year for cryptocurrency, with the growth of DeFi and the emergence of NFTs offering investors numerous new ways to enter the market. Now as we head into 2022, the hunt is on for the next big success story.
Whilst Bitcoin still dominates as the number one token by market capitalisation, many altcoins have offered larger returns for investors over the last 12 months - including Curve. Nonetheless, both projects have demonstrated their ability to undergo significant price surges and when considered alongside each other, both could be suitable options for diverse investment strategies.
As the market continues to evolve, tokens like Curve are increasingly coming to the fore, but Bitcoin remains the most prominent token in existence - particularly when it comes to investors from a more traditional background. Whilst speculation continues as to whether 2022 will be the year that the Bitcoin express runs out of steam, many market commentators believe that the original cryptocurrency is still poised for substantial growth.
In the following Bitcoin vs Curve comparison, we’ll look at exactly why each project could make a worthwhile addition to your cryptocurrency portfolio, as well as consider which one is predicted to be the stronger performer in the year ahead.
Bitcoin vs Curve - The Key Differences
We don’t have to scratch far beneath the surface to find the major differences between Bitcoin and Curve. For one thing, Curve only launched in 2020, whereas most people know that Bitcoin more or less single-handedly launched the cryptocurrency industry back in 2009.
There can be little question that Curve is the more advanced platform from a technical perspective, but the reality is that in this sense Bitcoin was eclipsed many years ago now and yet continues to be the most valuable cryptocurrency on the market. Nonetheless, it’s important to be aware of the strengths and weaknesses of each project.
Bitcoin is a cryptocurrency that needs no introduction. Since it was launched back in 2009, the token has become synonymous with blockchain investment and today remains the most popular - not to mention the most valuable - token on the market.
Whilst blockchain had been in development for a number of years before Bitcoin, Satoshi Nakamoto’s whitepaper set out the first truly viable form of secure, decentralised digital payment. Whilst Bitcoin may never come close to replacing fiat currency - especially given its huge energy requirements - it has dominated the cryptocurrency market consistently since its inception.
The reality is that in 2021, Bitcoin is somewhat dated. It cannot support the latest blockchain applications, such as DeFi or NFTs and there are far faster, more scalable and more versatile projects out there. However, even heading into 2022, Bitcoin continues to be the yardstick against which the wider market is measured.
Transactions and Speed
By today’s standards, Bitcoin is hardly posting any impressive numbers when it comes to transaction speeds. In fact, many predict that its comparative sluggishness will eventually be its downfall - alongside the huge amount of resources required to maintain the blockchain.
Bitcoin uses a Proof-of-Work consensus mechanism, which requires miners on the network to compete in solving equations to validate transactions on the network. When miners are successful, they are rewarded with BTC. This process - which has largely been superseded by Proof-of-Stake - limits Bitcoin to around 5 transactions per second.
To put things simply, Bitcoin isn’t going to compete with projects like Curve, which can take advantage of the faster transaction rates of the Ethereum blockchain, but the original cryptocurrency has proven that speed isn’t everything when it comes to cryptocurrency investment.
Supply and Demand
Bitcoin has an immutable supply cap of 21 million, with a circulating supply of 18,902,906 at the time of writing. However, it has an in-built deflationary mechanism wherein the amount of new BTC being unlocked is reduced as time goes on, which effectively serves to increase the scarcity of the token.
As we’ve mentioned above, Bitcoin miners maintaining the network are rewarded with BTC. However, this reward is halved at regular intervals. For instance, in 2009 mining a block would yield a 50 BTC reward. In 2012 this was reduced to 25 BTC and in 2016 it was cut to 12.5. The last halving was in May 2020 and the BTC reward now stands at 6.25 BTC.
The halving mechanism reduces the amount of new BTC being released into the network. When combined with the fact that many investors buy large volumes of the token and hold them for several years - which also leads to fewer tokens available - Bitcoin is constantly becoming scarcer, which in theory boosts the value of those tokens that do remain available.
Curve is a very different beast from Bitcoin. Instead of offering a means of value exchange, Curve is actually an Automated Market Maker. Put simply, this means that it is built upon protocols that provide liquidity for the buying/selling or exchanging of cryptocurrency. This means that Curve is an example of Decentralised Finance - DeFi.
Curve is actually built on the Ethereum blockchain and provides an exchange service that is built using smart contracts - using liquidity pools to provide its service, as opposed to a central order book, as is the case with traditional exchanges.
What’s sets Curve apart from other DeFi projects is that it focuses on stablecoins and by doing so, it offers far more competitive rates than most other exchanges. In fact, the Curve protocol is actually used by other projects, such as Aave and Compound, to augment their own exchange services.
If you’re looking to invest in the Curve protocol, then your best option is to acquire some CRV. CRV is the token’s native cryptocurrency. Like many DeFi projects, Curve is managed by a by a decentralised autonomous organisation (DAO) and CRV is the cryptocurrency token used to govern the protocol.
Holders of CRV are entitled to vote on the direction of the Curve project. This can include updates to the protocol, changes to the fee structure and how the project is managed in general. Voting power is dependent on how much CRV someone holds, as well as how long they have been holding it.
CRV is also delegated as a reward to those providing liquidity on the Curve platform - in addition to the interest they gain from the liquidity pools. As with most cryptocurrencies, CRV can also be bought and sold on most retail exchanges.
Supply and Demand
As we’ve noted, the Curve DAO token is used to incentivise users to provide liquidity as well as allowing holders to be involved in the governance of the protocol. However, it can also be bought and sold in the same way as any other cryptocurrency.
At the time of writing, there was a total supply of 3.3 billion CRV. Of that number, 506,199,915.34 is in circulation, with around 43% of the total supply locked into the protocol. When the token was launched, some 30% of the total was handed over to shareholders.
A point worth noting is that when CRV tokens are locked into the protocol, it tends to be for a fairly long time. In fact, the average time for the tokens to be locked into the system is 3.67 years. This means that tokens are often taken out of circulation for this time, which serves to increase scarcity - albeit temporarily.
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Curve vs Bitcoin: Which Is The Better Investment?
Technical particulars are all well and good, but ultimately investors are concerned with the future value of an asset and, as the cryptocurrency market has demonstrated, advanced features do not necessarily translate to major price increases.
Despite being relatively dated at this stage, Bitcoin is still the number one choice for mainstream investors entering the cryptocurrency market and continues to be the most valuable token by market cap - but is there much room left for it to grow?
It's extremely unlikely that CRV will overtake BTC in terms of token value, but if we take a look at a few key indicators we can get an idea for how much value each project has the potential to gain - or lose - in 2022.
Bitcoin Vs Curve: Price History
Before we look to any price predictions for Bitcoin or the Curve, it’s worth taking a look back at how each token’s price has moved in the past. This not only gives us an idea of potential price boundaries but also how each project moves in line with the wider cryptocurrency market.
Bitcoin is famous for its meteoric and often unexpected price rises. In fact, Bitcoin really put cryptocurrency on the map when it comes to serious investment. For example, the token was virtually worthless when it launched back in 2009, but a little over two years later a single BTC token was worth $1,242 - meaning those who chose to invest early saw substantial returns in a comparatively short space of time.
Over the next few years, BTC’s price moved in both directions, but in 2017 the token went stratospheric and had reached $19,783 by the time 2018 came around. The wider market was also caught in Bitcoin’s wake, but unfortunately, the surging market turned out to be a bubble - and that bubble burst later in 2018, sending BTC back down to $3,430 by December in what was arguably the most significant downturn the cryptocurrency market has seen to date.
Bitcoin remained subdued for a while but it weathered the COVID storm of 2020 remarkably well, prompting a new wave of investment. This in turn led to a record-breaking year in 2021, with BTC skyrocketing to over $40k in January. Another price run in February/March then saw Bitcoin hit $64,804.
News of a regulatory crackdown in China then sent the cryptocurrency market spiralling, with Bitcoin falling to $31,399 over the summer. However, the market soon bounced back and Bitcoin hit its all-time high of $69,044 in November.
Compared to Bitcoin, Curve is a relatively new project, having only launched in 2020. Therefore, there isn’t quite as much price data to look back over. However, in its short existence, Curve has demonstrated a fairly high degree of volatility - even by cryptocurrency standards.
When CRV launched back in August 2020, a single token was worth around $54.01. However, within just a few days its price had plummeted to just $3.59. A month later, CRV crawled back up to $5.44, but in October its value slumped again, dropping as low as $0.35 per token.
The price of CRV then bounced around for the remainder of 20202, never reaching the $1 mark and generally holding out above $0.50 for the most part. Surprisingly enough, however, 2021 saw CRV embark on an upward trajectory that would see it quadruple in value, reaching $2.14 in January. A few weeks later Curve was on the rise again, this time peaking at $3.59.
Several market upswings occurred throughout 2021 and, whilst Curve generally benefitted from all of them, it didn’t see the record-breaking price runs that many altcoins underwent. April saw CRV reach $3.94, but a downturn soon followed and by the end of May the token was trading at around $1.30.
By October, the downturn had passed and CRV began to increase once more, hitting around $2.80 by the middle of the month. In November, the token surged again, this time climbing to $5.88 - marking its highest price since the week of its launch in August 2020.
Bitcoin Vs Curve: Future Predictions
Previous price history can tell us a lot about how a particular cryptocurrency responds to certain market pressures, but ultimately what we are interested in is how things may move in future. To get an idea of what we can expect from Bitcoin and Curve, we can take a look at price predictions from some leading analysts.
Bitcoin price predictions appear to be fairly optimistic across the board - which is always good news for the wider cryptocurrency market as where Bitcoin leads, altcoins have a tendency to follow.
DigitalCoinPrice is forecasting substantial growth in its Bitcoin price prediction for 2022 and beyond. According to its analysis, by July 2022 BTC could be worth more than $55,000 per token. However, this is expected to be the high point of the year, with Bitcoin then declining slightly over the summer and finishing the year at an estimated value of $52,600.05. However, Bitcoin is expected to peak again in January 2023, reaching a potential high of $67,296.86.
Elsewhere, WalletInvestor is predicting a more consistent upwards trajectory for BTC. It has the token building on its price month-by-month throughout 2022, reaching a potential high of $61,293.90 over the summer before continuing to climb to a year high of $71,306.70 in December. Bitcoin (BTC) is then expected to continue rising well into 2023, potentially breaching $80k before March is out.
Finally, the Economy Forecast Agency sees Bitcoin’s future in a more conservative way. Its technical analysis also suggests that the price of Bitcoin (BTC) will perform well in the first few weeks of 2022, before going into a lull for most of the summer. However, by December, the BTC token is predicted to have bounced back and could be worth up to $25,575. Going into 2023, the platform expects BTC to grow more steadily, reaching $62,271 by the end of the year.
Of course, these Bitcoin price predictions are highly speculative, but the fact that they all point to growth is certainly a positive sign for anyone looking to invest in BTC in 2022.
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Curve’s price movement has been somewhat chaotic and the token has only been trading since August 2020, so building accurate price predictions is a little more difficult. With this in mind, potential investors should approach the following Curve price predictions with caution.
First up, DigitalCoinPrice sees CRV making some fairly solid gains over the next few months, before plateauing in the second half of 2022. According to its forecast, CRV will be up by around 40% come April, with an average trading price of around $4.41. However, after some volatility over the summer, the token is expected to finish the year around the same price, at $4.64.
Meanwhile, TradingBeasts is a little more apprehensive about CRV’s future. It has the token trading around its current price across much of 2022 and 2023. However, by the end of 2024 the token is expected to be up by around 44%, trading at a potential high of $4.58. Whilst this ma unnerve some investors, it seems that 2022 could be an opportune time to buy into Curve when prices are subdued.
WalletInvestor is predicting a much steadier increase in price for CRV. It has the token climbing slowly throughout 2022, climbing past $5 per token in March and hitting a potential high of $6 before the start of the summer. Going into September, CRV is expected to be trading at over $7 and by the end of the year, WalletInvestor’s best-case scenario has it breaking $8.
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Curve Vs Bitcoin: What the Experts Say
Whilst expert opinions are no substitute for analysis-based price predictions, they can shed some light on how particular cryptocurrency projects are viewed in the worlds of business and finance.
Bitcoin has been dividing opinions since it launched in 2009, but recently it has garnered much more mainstream support. Famously, Tesla acquired $1bn worth of BTC at the start of 2021, which constituted a fairly significant vote of confidence. Elsewhere, Galaxy Digital’s Mike Novogratz has long been a vocal supporter if Bitcoin and he believes that ever-increasing demand from institutional investors will see the price of BTC continue to rise:
“Every single bank is working on their own crypto project, how they can get bitcoin to their wealthy 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 curve, Peter Chan, who trades with Hong Kong’s OneBit Quant, believes that traders abandoning stablecoins like USDC could herald changing fortunes for Curve. Especially after USDC froze $100k worth of assets on a few addresses. Chan believes that this might see “flow on USDC switching to other stable coins” which in turn could boost Curve’s value.
Meanwhile, Michaël van de Poppe has noted that Curve is showing some strength against Bitcoin and could see bullishness continue into 2022.
Curve Vs Bitcoin: Conclusion
Bitcoin and Curve represent two very different areas of the cryptocurrency market. Bitcoin is still the dominant token on the market, despite being nothing more than a digital currency equivalent. Curve on the other hand is a sophisticated exchange that seeks to solve the issues of volatility within the cryptocurrency market.
The reality is that both of these tokens could have their place in a forward-thinking investment portfolio. Curve is definitely still an up-and-coming project that has plenty of room for growth and a comparatively low token price. Bitcoin on the other hand is still a favourite for institutional investors and remains the world most famous cryptocurrency.
If we look at price predictions for Curve and Bitcoin, then it seems that 2022 could be a good year to buy either token. Bitcoin is expected to grow fairly steadily, whilst Curve’s token price could remain low for much of the year - making it an ideal time to buy, as it is widely expected to swing back to growth in 2023 and beyond.
Bitcoin and Curve could both prove to be worthwhile investments in the coming years and taken together, the two projects provide a good opportunity to diversify any cryptocurrency portfolio. As always, anyone choosing to invest in the cryptocurrency market will need to keep a close eye on things and stay informed of the latest developments to stand the best chance of success.
How To Invest In Bitcoin & Curve Coins in 2022
If you do choose to invest in Bitcoin and/or Curve in 2022, then it's important to find a reliable and secure broker or exchange that can give you access to the market. We recommend eToro for most users, as the platform has an excellent reputation in the industry as well as an award-winning trading platform.
eToro lists both Bitcoin and Curve, as well as many other leading cryptocurrencies. You’ll also find plenty of articles and guides on the wider market, as well as tips from top professional traders.
eToro – The Best Platform to Buy Cryptocurrencies
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
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Bitcoin vs Curve - which should I buy in 2022?
Bitcoin and Curve are two very different projects. Whereas Bitcoin is the original cryptocurrency that sought to offer an alternative to fiat money, Curve is a relatively new DeFi project that harnesses the potential of stable coins. When it comes to investment, both projects have the potential to grow in 2022 and together, both offer a good way of diversifying your existing crypto portfolio.
Can Curve double my money in 2022?
Most analysts are predicting growth for Curve in the coming years. However, some believe that the token may stagnate throughout much of 2022, so it's unlikely that the token will double in value over any extended periods. Nonetheless, its possible that Curve could double your money in 2023 or 2024 so 2022 could well be a good time to buy into Curve.
Where can I buy Curve?
If you are looking to buy Curve, then the good news is that one of the world’s leading cryptocurrency brokers - eToro - is currently listing the token, not to mention numerous others. It takes a few minutes to open an account and then you’ll have access to eToro’s renowned trading platform which will allow you to purchase Curve at the touch of a button.
Which crypto should I buy in 2022?
2022 looks set to be an exciting year for the cryptocurrency market and there’s every chance that cryptocurrency investment will be more popular than ever before. If you are looking to start a cryptocurrency portfolio, then research is key to ensuring the best chance of success. If you’re new to the market, why not start by checking out our guide on how to invest in cryptocurrency in 2022.
Will Bitcoin continue to grow in 2022?
Bitcoin saw record-breaking price runs in 2021, eventually smashing its all-time high in November and reaching $69,044 in November. However, whilst some have speculated that Bitcoin has little room left to grow, it seems investors are still betting on the original cryptocurrency. Mike Novogratz, of Galaxy Digital, believes that continued interest from big players will continue to drive BTC’s price up across 2022 and beyond.