Bitcoin and Theta are both worthy additions to any cryptocurrency investment portfolio–albeit for very different reasons. The former is the world’s leading token and remains the most famous name in the industry, whereas the latter is an up-and-coming project that seeks to revolutionise the way we experience video content online.
There is little point comparing Bitcoin to Theta from a technical perspective–the two projects were launched almost a decade apart and Theta benefits from a more advanced blockchain. However, when it comes to making an investment, it's worth making the comparison, as Bitcoin acts as a kind of yardstick against which all other tokens can be measured.
That isn’t to say you have to choose between Theta and Bitcoin–both tokens could be sensible additions to your portfolio, depending on your investment strategy. But it's important to understand each project’s potential and what sort of price movement we can expect in the coming years.
The purpose of this Theta vs Bitcoin comparison is to look at how each project slots into the wider cryptocurrency market and what sort of an investment opportunity each one presents. To do this, we’ll be taking a look at the technical fundamentals behind Bitcoin and Theta as well as hearing from leading analysts on what they believe the future holds for each token.
Theta vs Bitcoin - The Fundamentals
Theta and Bitcoin are very different projects and there is little point in making a like-for-like comparison of each one's fundamentals. However, investors need to understand the basics of a project's use case and have an overview of how they work before considering adding either one to their portfolio.
Theta
Background
Theta is a cryptocurrency project that was set up to provide a more cost-effective and efficient alternative to video streaming giants. As demand for video streaming continues to grow at an exponential rate, so too does the strain placed on existing infrastructure. Theta aims to address this by leveraging blockchain technology to create the first decentralised video streaming network. The system is powered by its native cryptocurrency, TFUEL. An additional token, THETA, acts as the governance token for the platform.
Theta has positioned itself as a Content Delivery Network (CDN) aimed at providing an optimal streaming experience. The platform allows users to earn tokens from viewing advertisements, relay video streams to other users and reward their favourite content providers. It’s also possible to pay for premium content with the THETA token.
One of the strengths that Theta has is that it can track usage over time and automatically update and reallocate bandwidth where necessary to provide a better experience for users.
Platform fundamentals
The Theta platform was specifically built to deliver video content online. Essentially, what it does is incentivise users to share bandwidth to make maximum use of available resources. However, Theta has also made several technical innovations that give it certain advantages over traditional rivals like YouTube or the various streaming platforms out there.
The system is too complex to be fully broken down in this short section, but it's important to know that Theta employs Enterprise Validator nodes, manned by the likes of Google and Binance, along with a second layer of guardian nodes that complete new blocks and add them to the chain.
In addition, there are also 130,000 Edge Nodes that effectively provide the infrastructure for Theta’s video hosting through the EdgeCast service. Edge Nodes also mean that Theta is resistant to censoring and no central authority has control over the content shared.
The Theta token
As we’ve touched upon above, there are two tokens that are important to the Theta network–THETA and TFUEL. Both are crucial to the system but have a very different function. TFUEL, as the name suggests, is the token that drives the blockchain. It could be compared to paying GAS on Ethereum.
THETA, on the other hand, acts as the governance token of the Theta system. It can also be used to add blocks as part of the proof-of-stake consensus mechanism for the validator and guardian nodes. The total supply of THETA is hard-capped at 1,000,000,000.
You can buy both THETA and TFUEL on the open market but the focus of this comparison is THETA, as it is the token with the bigger market cap at the time of writing.
Check Out: How To Make Or Lose Money With Theta?
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Bitcoin
Background
Bitcoin was first proposed in a whitepaper by the mysterious Satoshi Nakamoto back in 2008 and launched in 2009. It was a revolutionary concept at the time–a secure, decentralised alternative to cash that threatened to seriously disrupt the worlds of business and finance.
There was a lot of interest in Bitcoin right from the outset. However, as time went on, it became obvious that the Bitcoin network was unlikely to sustain the transaction volume required from a retail payments platform. This was largely due to the per-transaction cost as well as the substantial resources required to add new blocks to the chain.
Today, Bitcoin has emerged as a kind of digital gold–a place for investors to put their money to hedge against economic downturn in the legacy finance markets. It remains the most valuable cryptocurrency by market cap and is now a mainstay in the investment portfolios of large corporations.
Transactions and Speed
Whilst Bitcoin was cutting edge when it originally launched, it is somewhat dated by today’s standards. The network relies on a proof-of-work consensus mechanism, which means that computers on the network compete to solve equations in order to add blocks to the chain. This process is extremely resource-intensive and requires a substantial amount of power–equal to that of a small European nation.
Aside from environmental considerations, the main issue that prevents Bitcoin from being a viable retail payment option is simply its lack of speed. It takes approximately ten minutes for new blocks to be added to the network, which allows for roughly 5 transactions per second. Given that Visa and Mastercard handle almost 2000 TPS, Bitcoin is hardly likely to meet demand.
BTC is now considered more of a means to store value than to exchange it. Despite its apparent lack of a real-world use case, the token continues to be the most popular digital asset to invest in.
The BTC coin
We’ve noted that Bitcoin uses proof-of-work to validate blocks. What this means is that agents on the network with enough computational power–known as miners–work to add blocks to the network and verify transactions. For providing this service, they are rewarded with BTC.
The amount of BTC that miners receive has been halving at regular intervals. In 2012, it stood at 25 BTC. In 2016, that number was reduced to 12.5 BTC and in 2020 it was cut again to 6.25 BTX. This reducing block reward acts as a deflationary mechanism, as it means that there are fewer and fewer BTC tokens being released as time goes on, which, in theory, will increase their value. The total supply of Bitcoin is also hard-capped at 21 million.
In addition to the diminishing supply that is built into Bitcoin tokenomics, it's worth noting that most Bitcoin investors tend to hold their tokens over the long term. This means that they are effectively taken out of circulation, thus further increasing the scarcity of BTC.
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Theta vs Bitcoin: Which Is The Better Investment?
Now we know a little more about what Theta and Bitcoin actually are, we can start thinking about how they stand as investment opportunities. To do this, we need to look at data related to the price of each token. We will also hear from top market analysts on their predictions for BTC and THETA.
Bitcoin Vs Theta: Price History
Before we can start looking ahead and consider Bitcoin vs Theta price predictions, we first need to take a look back at how each token has performed historically. This will not only tell us where the potential price barriers for each token lie, but also how each one moves in line with each other and the wider cryptocurrency market.
Theta
THETA first became widely listed back in January 2018 and it's probably fair to say things remained pretty uneventful for the first few years. Initially, the token traded at around $0.20 but trended downwards to around $0.11 during its first few weeks. There was a slight upturn over the early summer but by the end of the year, THETA was trading at around $0.05.
Theta didn’t see much success across 2019 either, as the token struggled to crawl above $0.10, with the only upswing coming in late summer when THETA hit as high as around $0.12. However, these minor gains were not held and by the time 2019 drew to a close, the token was once again trading below $0.10.
Things began to pick up in 2020, as Theta started to get a little more recognition in the industry. After a disappointing start to the year, trading as low as $0.04, THETA surged to $0.40 in May, marking growth of some 900%. Things cooled over the summer but come late August Theta was on the up again, this time climaxing with a high of $0.77 in October.
It was 2021, however, that really saw Theta take off. As the entire cryptocurrency market went stratospheric, the price of THETA surged to its all-time high of $15.72 in April. Unfortunately, Theta couldn’t hold its price and sank back to less than $4.00 after crashing in July. However, things soon turned around again and the token regained $5.51 before the year was over.
Since then, crypto prices have largely dropped and at the time of writing, THETA was trading at $2.19.
Bitcoin
By this stage, most people are aware of Bitcoin’s ability to generate substantial price runs. In fact, the first crypto millionaires were made just a few years after Bitcoin launched. BTC initially traded at virtually nothing–just a fraction of a cent, but by 2013 the token was changing hands at $1,242 and had established itself as one of the hottest investment opportunities in existence.
As more and more tokens were launched, cryptocurrency became an industry in itself and trading platforms all over the world started to list the top tokens. Investor interest accelerated across 2017 and when 2018 arrived, Bitcoin had reached an unprecedented price of $19,783 per token. However, shortly after came the first significant crypto crash, which sent BTC tumbling to just $3,430 by the end of the year.
Despite losing significant value, it seemed that the crypto market crash did little to deter investors and BTC had regained $10,000 by the time 2020 arrived. Things continued to go well for the market but in February of 2021 things really took off. A major market-wide bull took Bitcoin to a then-record high of $64,804, prompting a wave of new investors to flock to the crypto market.
As we’ve noted above, there was a market cooldown over the summer, but in September things picked up again and Bitcoin started on its most significant price run to date, reaching an all-time high of $69,044 in November 2021.
Things took a downward turn in early 2023, with BTC losing around half of its value and sinking to $35,180 in January. Things had gradually started to turn around but Bitcoin has since slumped again and at the time of writing was worth $35,977 per token.
Bitcoin Vs Theta: Future Price Predictions
Now that we've looked at the price histories of Theta and Bitcoin we can get an idea of how each project responds to certain economic pressures, as well as how they move in relation to each other. Now, to consider what the future may hold, we need to consult the forecasts of some leading crypto analysts.
Theta
The price predictions we looked at focused on the Theta Network Token (THETA) as this has the higher market capitalisation of the two Theta tokens. It seems that analysts have mixed opinions as to what we can expect in the coming years, though ultimately all seem to think THETA has good growth potential at certain points.
DigitalCoinPrice has made a fairly consistent price prediction for THETA. Its technical analysis has the token reaching $2.89 by the end of 2023, after fairly slow growth. However, that growth is expected to accelerate slightly and by the end of the following year, DigitalCoinPrice suggests THETA could reach a high of $3.42. Things are expected to continue apace, with the token ending 2025 at a predicted $4.77.
Meanwhile, CoinPriceForecast is easily the most bullish on Theta. Its prediction has the token reaching $4.62 by the end of 2023–meaning it expects Theta to double in value. Things are expected to continue this way across 2023 and by the time 2023 draws to a close, the platform suggests THETA could be worth as much as $6.47.
TradingBeasts is also remarkably positive about Theta’s future–although it does see the project struggling over the remainder of 2023, potentially losing 3% of its value by the end of the year. However, things are then expected to turn around with THETA undergoing significant growth in 2023 and 2024. By the time 2025 arrives, TradingBeasts predicts that THETA will be trading at an average of $4.15–almost 100% growth on today’s price.
Read Also: Theta Price Predictions
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
BTC
Bitcoin took a pretty serious hit in the opening months of 2023 and at the time of writing it is worth roughly half of what it was in Q4 of 2021. The big question facing analysts is if and when Bitcoin will turn things around and start to make its recovery. This looked well underway by early April, but now it seems the market has cooled again.
DigitalCoinPrice is still forecasting a positive 2023 for Bitcoin. It has the token recovering to a respectable $49,743 by the end of the year. BTC is then expected to continue to perform well across 2023 and could be trading at an average of $55,530 by the time December arrives.
WalletInvestor is also predicting growth in Bitcoin’s near future. According to its technical analysis, we will see BTC crawl above the $40k mark before 2023 is out. However, growth will accelerate throughout 2023 and by the end of the year, WalletInvestor has predicted that BTC could hit a new record price of $82,478. Just over a year later, Bitcoin is then expected to be closing in on $100,000.
Once again, TradingBeasts has been a little more conservative with its Bitcoin forecast. The platform actually has BTC losing value across 2023 and 2030–perhaps dropping by as much as 28%. However, following this protracted downturn things are expected to pick up again in 2024 and a year Later BTC is expected to be trading at an average of $70,210, effectively double today’s value.
As always, these forecasts should be seen as illustrative only. There are no guarantees any will be correct and you should conduct your own research before deciding which tokens–if any–to add to your portfolio.
Don't Miss: Bitcoin (BTC) Price Prediction
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Theta vs Bitcoin: What The Experts Say
Expert opinions should never be taken as financial advice, but they can be useful insight into what the wider business world thinks of a particular cryptocurrency. So what do business leaders and crypto experts have to say about Theta vs Bitcoin?
Bitcoin has plenty of big-time supporters. Tesla’s Elon Musk has signalled his support for BTC on several occasions, not least when his firm added $1bn of the token to its investment portfolio back in 2021. Elsewhere, Galaxy Digital’s Mike Novogratz has been arguably Bitcoin’s most vocal supporter, insisting that the token is now a superior option to gold as a “safe haven” for investors.
Suffice to say that Theta doesn’t quite have the backing that Bitcoin does, but it's not without its supporters. Noted crypto analyst Altcoin Sherpa has recently tipped Theta for growth, having emerged into the limelight following its initial quiet years.
“I think that this one will moon earlier than other altcoins. It’s been in an accumulation range for longer than most and hasn’t pumped really in quite some time,” he said,
Theta vs Bitcoin: Conclusion
So that about does it for our Theta vs Bitcoin comparison. Of course, there is very little competition between these tokens in terms of use cases. They were set up with very different objectives in mind. Likewise, Theta is a much newer project and inevitably has a more advanced infrastructure.
But technical superiority doesn’t always mean much in the crypto world–the top five tokens on the market are by no means the most advanced. Bitcoin is still the biggest name in the business some 13 years after launching and it doesn’t look like that will be changing in the near future.
The price predictions we found for Theta vs Bitcoin were positive overall. However, it appears that some analysts see some tough times ahead for both tokens. This means that investors will likely need to either plan an exit point to beat any downturns or hodl the tokens and not get spooked when things take a downturn.
It’s probably fair to say that Bitcoin is a safer investment than Theta–from a crypto perspective at least–but the truth is that either of these tokens could be a worthy addition to your portfolio. Whatever decision you make, just be sure to keep a close eye on developments in the cryptocurrency market.
How To Invest In Bitcoin and Theta Cryptocurrency In 2023
Are you looking to invest in cryptocurrency but don’t know where to start? Well, the first thing you need to do is a little research. Naturally, we recommend perusing some of the articles on Trading Education to get an idea of what the top projects are and get to grips with the basics of crypto investing.
Next, you’ll need to find yourself a reputable broker or exchange that can give you access to the market. There are many to choose from and each one has its own strengths and weaknesses, but we think that eToro is top of the pile, thanks to its competitive fee structure and award-winning trading platform.
Once you get started with eToro you’ll also have access to the operator's considerable educational materials, including project descriptions, how-to guides and some insights into different kinds of trading.
eToro – The Best Place To Buy Cryptocurrencies
Open an account with eToro, deposit some funds with USD, and finally – buy cryptocurrencies from just $10.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Bitcoin Vs Theta - FAQ
Theta better than Tron?
Whilst they may appear similar on the surface, Theta and Tron are two very different projects. Whilst the latter is a platform for sharing digital content and connecting artists to audiences, Theta is all about providing an optimised streaming experience. Both projects are definitely worth checking out if you are looking for web 3.0 tokens to invest in.
Should I buy Theta?
Theta was something of a dark horse, rarely making any headlines for the first 2 years of its existence before exploding in value in 2021. Now investors have started to take notice and the valuable use case of Theta is slowly starting to be appreciated. So should you invest in the token? That would depend on your current portfolio and individual investment goals.
Where can I buy crypto assets?
There are plenty of places to buy crypto online these days but we’d recommend you only go with a well-established and trusted brand. eToro is the platform we usually recommend, as it is one of the top names in retail trading and investment and is suitable for both novice and more experienced crypto traders.
Is Bitcoin still the biggest cryptocurrency?
Bitcoin has been around for a long time now, yet it continues to dominate the market. It’s certainly the biggest cryptocurrency in terms of market cap, though projects like Binance and Ethereum are arguably ‘bigger’ names when it comes to things like DeFi.
What crypto is going to explode in 2023?
Every cryptocurrency investor wants to know the answer to this question, but ultimately no one can say for sure which tokens are going to take off in the coming months. Serious investors usually opt for a diversified crypto portfolio, including projects targeting different industries. This gives a much better chance of success than simply trying to pick one token that could suddenly go stratospheric.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.