Bitcoin and The Graph may already be in your investment watchlist. But which one has the better investment in 2022 and beyond?
Bitcoin and The Graph are about as different as is possible for two blockchain projects to be - one was launched back in 2009 and offers a means of secure, decentralised value exchange, whilst the other promises to revolutionise the entire blockchain industry. But does this mean that GRT is a better investment than BTC as we head into 2022, or will the original cryptocurrency continue to dominate?
It could be said that the cryptocurrency market has changed more in the last 12 months than in any other year before it; yet even as new and ever more advanced projects emerge, Bitcoin remains the clear market leader in terms of overall value. However, The Graph seeks to solve certain issues that have arisen within the blockchain industry, which could undoubtedly see its value surge.
On the surface, it may seem as though Bitcoin vs The Graph really is no competition at all, and from a technical perspective this may well be true, but it should be remembered that institutional investors are still wary of the cryptocurrency market and, no matter how advanced a project may appear, it will be a while before it can build up the same level of trust that Bitcoin has.
There is also the question of whether Bitcoin and The Graph really need to be decided between - as we shall see in this article, there are one or two reasons that these projects could both be wise additions to any forward-thinking portfolio.
This is a good thing to bear in mind when weighing up Bitcoin vs The Graph, but we’ll start by taking a closer look at the finer points of each project, before hearing from a few top analysts on what they are predicting for their future price movements.
The Graph vs Bitcoin - The Key Differences
There is no shortage of difference between The Graph and Bitcoin - the two projects are arguable as far apart as is possible for two blockchain projects. However, it's important to be aware of a few key fundamentals and understand for what purpose each project was designed for.
Bitcoin
Background
Bitcoin is the original cryptocurrency, having put blockchain on the map back in 2009. Whilst the technical aspects of the project might be somewhat dated at this point, Satoshi Nakamoto’s original whitepaper laid out many of the fundamentals that are now taken for granted as the backbone of all cryptocurrency projects.
Of course, Bitcoin is also famous for yielding huge returns for investors over relatively short time frames. Few people can claim to be unaware of the sheer hype surrounding Bitcoin investment and heading into 2022, this shows little sign of calming down.
What’s interesting about Bitcoin is, despite the emergence of DeFi and NFTs - which the Bitcoin network cannot support - the original cryptocurrency has continued to dominate the market throughout its existence and even today a single BTC token is worth considerably more than any other cryptocurrency, despite the project approaching 13 years old.
Transactions and Speed
Bitcoin’s transaction rates are fairly unimpressive by today’s standards. Whilst the technology behind the project was revolutionary at the time, it has proven to be somewhat shortsighted and the huge resource requirements of the network mean it is unlikely to ever be a mainstream means of payment.
One of the reasons for Bitcoin’s relative sluggishness is that it relies on the proof-of-work consensus mechanism, which means that miners on the network compete to solve complex equations to verify new blocks. This process requires both time and resources and most newer blockchains either use proof-of-stake or are planning to switch to it in the near future.
However, whilst Bitcoin can’t hope to compete with the latest smart chains when it comes to transaction speed, it should be noted that this has done little to dampen its price movement thus far.
Supply and Demand
In reality, supply and demand has more influence on Bitcoin’s price than any technical particulars. The original cryptocurrency has a total supply cap of 21 million tokens, which are gradually released into the ecosystem as part of the reward mechanism for miners.
The amount that miners are rewarded - and therefore the amount of new BTC being released - is halved at regular intervals. This serves to create a deflationary effect in which the scarcity of Bitcoin increases over time.
Another reason that Bitcoin is increasing in scarcity is that investors tend to hold their tokens. If there is such a thing as a long term investment opportunity in the cryptocurrency market, then its Bitcoin and many large scale institutional investors choose to HODL the token - effectively taking it out of circulation.
Check Out: 15 Reasons Why You Should Invest in Bitcoin Today
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The Graph
Background
The Graph is a highly ambitious project that was set up to provide a platform for developers who needed to gather data and information from various blockchains. Effectively, it acts as a giant database. Built on the Ethereum blockchain, the project was set up by Jannis Pohlmann, Yaniv Tal, and Brandon Ramirez and is touted as ‘the Google of blockchain’.
Naturally, the inner workings of The Graph are a highly complex affair and well beyond the scope of this article. It’s enough to understand that The Graph effectively organises the various information sets, dApps and protocols into so-called subgraphs, which can be browsed using The Graph explorer interface.
The subgraphs are basically descriptions of particular groups of smart contracts that exist on Ethereum-based protocols. Developers using the Graph can browse these smart contracts to identify those which they may be able to utilise when building their own projects.
Token fundamentals
The Graph system is powered by its native cryptocurrency, GRT. Users looking to query the datasets on the platform pay a fee for using the services. The system also relies on indexers and curators to carry out these queries, for which they receive a small percentage of that fee. GRT is used as the means of currency for these services.
Holders of GRT can also stake it to earn rewards without having to operate an indexing or curating node. This effectively means that anyone holding GRT can earn from the platform, regardless of any technical expertise or lack thereof.
Supply and Demand
Being built on Ethereum, it will come as little surprise that GRT is an ERC-20 token. It initially had a supply of 10 billion, which is released into the ecosystem at regular intervals, with an inflation rate set at 3% per year. However, when a query is made on the network, 1% of the fee is burned - i.e. removed from circulation. This means that, if querying volumes get high enough to outstrip the 3% inflation rate, GRT could end up being a deflationary token.
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The Graph vs Bitcoin: Which Is The Better Investment?
Its safe to say that Bitcoin and The Graph serve two very different purposes within the cryptocurrency sphere. However, the reality is that a token’s price is dictated just as much by investor preference as it is technical credentials.
This means that, in order to start building predictions, we need to start by looking at previous price data to identify how each token has performed leading up until this point. We can also use this data to gauge how a token’s price moves in line with the wider cryptocurrency market.
Bitcoin Vs The Graph: Price History
Bitcoin (BTC)
One of the reasons that Bitcoin became a household name is due to incredible price runs that have made many an overnight millionaire over the years. For example, when the token originally launched in 2009, it traded for fractions of a penny. However, by 2013 a single BTC token was worth $1,242 - meaning those who had chosen to invest early saw some very impressive returns.
Between 2013 and 2017, Bitcoin experienced varying fortunes. It went into steady decline following its 2013 high and spent the next 18 months or so fluctuating between $200 and $300, before gradually starting to move up until reaching the $1k mark once again in early 2017. The famous crypto bubble then kicked in, which saw the price of BTC soar to $19,783 by the time 2018 came around, before famously bursting and sending prices tumbling to $3,430 by December of that same year.
Bitcoin was quick to start its recovery and by the start of 2021, its token value had already reached $23k - and this was before several price surges took its price higher and higher. First, the token hit an unprecedented $40k in January, before surging to $64,804 when another price run kicked off in April/May.
Following the impressive first quarter, the crypto market experienced a downturn across much of the summer of 2021 and Bitcoin dropped back down to $31,399. However, November saw another substantial bull and Bitcoin attained its all-time high of $69,044 before the month was out.
The Graph (GRT)
The Graph hasn’t been around quite as long as Bitcoin, having only been widely listed at the tail end of 2020. However, there’s still enough information to give us an idea of its price movement in line with BTC and the wider cryptocurrency market.
The Graph surged in value just a few days after launching - soaring from $0.12 to $0.74. However, this initial success is quite common in the market and wasn’t to last for GRT. The altcoin’s value soon plummeted and for most of the rest of 2020, it hovered at around $0.30.
January 2021 proved to be a fairly successful month for GRT, as its price made its way up to $0.61. This was the first of several price runs for The Graph - and indeed the wider cryptocurrency market - with the next one sending GRT to its record high of $2.84 in February - an increase of around 370%.
GRT underwent a lull in March, with prices dropping as low as $1.38 but another bull struck in April that sent it back up to $2.09. However, The Graph did not see the same upswings that much of the cryptocurrency saw in the second half of 2021 and fell below $2.00 for the rest of the year and even dipped below $0.50 in July.
Bitcoin vs The Graph: Future Predictions
Price predictions from leading analysts are arguably the best indicators we have to go on when looking at a token’s price potential, but despite being based on often complex equations and algorithms, ultimately they are still only guesswork. As such, the following Bitcoin and The Graph forecasts should be seen as suggestive only - nothing is guaranteed in the cryptocurrency industry.
Bitcoin (BTC)
Looking ahead to 2022 and beyond, it seems most analysts are predicting growth for Bitcoin overall, aside from the odd month or two when BTC may slip into decline. This bodes well for the wider cryptocurrency market, as Bitcoin tends to be an indicator of its overall health.
DigitalCoinPrice, for example, sees BTC soaring above $54k per token as early as March 2022. There is then expected to be a bear market over the summer months, with Bitcoin dropping to an average trading price of $51,328.60 by the end of the year. However, 2023 will see BTC once again on the up, potentially reaching $65,670.17 in May - growth of over 75% on today’s prices.
Meanwhile, WalletInvestor believes that 2022 will be a year of more consistent growth for Bitcoin. According to its technical analysis, BTC will reach $55k by mid-summer and will continue to build on this success in the subsequent months, finishing the year at a respectable $71,306.70. WalletInvestor also sees 2023 being a successful year for Bitcoin, in which it will potentially go past the $100k milestone.
The Economy Forecast Agency doesn't see growth ahead for Bitcoin. It has the token experiencing a downturn expected across the whole year. By December, BTC is expected to be trading at $24,226 - around a 34% decrease from today’s price. The platform then has BTC on an upwards trajectory heading into 2023, potentially hitting $58,988 by the end of the year.
Read Also: Bitcoin Price Predictions
The Graph (GRT)
The Graph is a little more of an unknown quantity when it comes to price predictions - especially as its future success depends largely on continued uptake by users. However, looking at some of the top Graph price predictions, it seems that the token is set for growth in the coming years.
DigitalCoinPrice believes that The Graph (GRT) could double in value across 2022, although the token will experience a fair bit of volatility and gains will not necessarily be held month by month. However, by the end of the year, GRT is expected to be worth around $0.51 - marking growth of 27% or so on today’s price. The token is then expected to grow at an increased rate across the next couple of years, potentially approaching the $0.8 mark by 2024.
Elsewhere, TradingBeasts believes that The Graph will potentially gain 92% by December 2022 - although this represents best-case scenario. However, by summer 2023 even TradingBeasts’ prediction for GRT’s average trading price stands at $1.01 - representing growth of more than 153% on today’s price.
Finally, WalletInvestor is less optimistic about The Graph GRT’s future. Its forecast suggests that the token will fluctuate in price over the next few months and, whilst GRT may climb as high as $0.93, it is generally expected to decline over 2022 and by the end of 2023 is expected to have gone down to $0.15.
Check Out: The Graph Price Predictions
The Graph Vs Bitcoin: What The Experts Say
It’s always worth checking out a few expert opinions to get an idea of how a particular cryptocurrency is viewed in the wider financial world. Whilst these opinions should not be considered financial advice, they do serve as yet another information stream that can be referenced whilst building a strategy.
Bitcoin has plenty of supporters, of course. One of the biggest votes of confidence in the original cryptocurrency came early in 2021, when Elon Musk’s Tesla announced its acquisition of $1 billion worth of BTC as part of its investment strategy. The token also has a long time supporter in Galaxy Digital’s Mike Novogratz, who believes continued institutional investment will see BTC grow to new highs in the coming years:
“Every single bank is working on their own crypto project, how they can get bitcoin to their wealthy clients,” he 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.”
The Graph has also been gathering support recently. Noted crypto analyst Michaël van de Poppe believes GRT could be an altcoin to watch in the near future, pointing out that a series of constant fluctuations in price appears to have levelled out and a reversal could be on the cards, with the aggregate price of GRT creeping up.
Elsewhere, Digital asset analyst Jason Pizzino has picked GRT as one of his top five altcoins to watch in the coming months, saying that it is “finally starting to make its move” with consistently higher lows.
The Graph vs Bitcoin: Conclusion
If we were to weigh up The Graph vs Bitcoin from a purely technical viewpoint, then The Graph would be the clear winner, as it’s simply a newer and more advanced platform. However, there are plenty of projects more advanced than Bitcoin, yet it continues to dominate the market and is expected to do the same across 2022 and beyond.
Bitcoin has seen more major price surges than The Graph across 2021, but questions have been raised as to how much room there is for BTC to continue growing. The Graph, on the other hand, has a great deal of potential and if uptake increases, so too will the price of GRT.
If we consider analysts’ price predictions for BTC and GRT, then it seems both could prove worthwhile investments - particularly for those investors willing to hold their tokens for a year or more. Of course, these results aren’t guaranteed, but they are certainly a vote of confidence for both tokens.
In reality, there is little need to actually peg Bitcoin against The Graph. The two projects have very different objectives and both would make worthy additions to any diversified cryptocurrency portfolio. If you’re looking to invest in cryptocurrency in 2022, then The Graph and Bitcoin are both potential picks - so long as you understand the key differences between each project.
How To Invest In GRT & BTC Crypto Coins In 2022
Anyone looking to invest in The Graph or Bitcoin will first need to open an account with an exchange or broker that lists these tokens. We recommend eToro for most users, at it is an established brand with an excellent reputation and approachable trading platform.
Opening an account with eToro takes just a few minutes. It will require you to complete some basic verification checks but once you’re up and running you’ll be able to buy and sell cryptocurrencies at the touch of a button.
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FAQs
Bitcoin vs The Graph - which should I invest in 2022?
Both Bitcoin and The Graph could prove to be worthwhile investments in 2022, so you could consider adding either to your cryptocurrency portfolio. In fact, the two together would add a good degree of diversification, especially as GRT doesn’t always move in tandem with BTC, as many altcoins do.
Is The Graph going to increase in value in 2022?
Most cryptocurrencies are subject to a high degree of volatility - and The Graph is no exception. However, most market analysts are expecting the altcoin to perform well in 2022, with some predicting that it could double in value during certain months of the year.
Where can I buy The Graph?
If you’re looking to buy GRT tokens, then the good news is that you’ll find them listed on eToro - one of the most popular retail brokers on the market. You’ll need to open an account first, but once you do you’ll be able to buy and sell cryptocurrency at the touch of a button.
Which crypto should I buy in 2022?
If 2021 is anything to go buy, then the cryptocurrency market could prove highly prosperous for investors going into the new year. Choosing which tokens to add to your portfolio requires careful planning, so we recommend doing a lot of research before making your picks. Generally, Bitcoin is the first port of call for new investors, but altcoins like The Graph are always worth checking out - particularly due to their comparatively low buy-in price.
Is the Bitcoin bubble going to burst?
Bitcoin had a record-breaking year in 2021, leading to the usual speculation that it could be heading into a significant fall. However, with continued interest from large-scale investment vehicles, most experts agree that Bitcoin is likely to continue growing in the coming years, albeit with the occasional downturn.
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