Some investors are bullish about Bitcoin and Ethereum for some time now. Somehow or the other though, they have missed out on buying BTC and ETH so far. Now, However, investors would like to buy them before they start feeling like they missed an opportunity.
Bitcoin and Ethereum prices have crashed 50% recently. Investors less convinced on Bitcoin and Ethereum merits may want to take a step back on learning on these.
The world of blockchain and cryptocurrencies offers endless opportunities. Despite their volatile nature and wild price swings, these digital assets have seen a monumental rise in popularity and adoption rates over the past several years.
Bitcoin (BTC) and Ether (ETH) have advanced significantly to become the top two cryptocurrencies by market cap. According to industry experts and analysts, BTC and ETH are relatively safer crypto investments, thanks to their fame, size, and worldwide adoption.
Ether and Bitcoin are similar in several ways. Both are virtual currencies that are traded on online exchanges and stored in different types of crypto wallets. Both these coins are decentralized, meaning that they are not regulated or issued by any central authority or bank. Bitcoin and Ether both leverage distributed ledger technology called the blockchain.
However, there are also many distinctions between these two tokens and the factors behind their rally. Let us take a step back to examine these cryptocurrencies and understand the reasons that make now a great time to invest in Bitcoin and Ether.
Why Now Is a Great Time To Buy Bitcoin: Unique Features and Price Analysis
Bitcoin, the world's first and most successful cryptocurrency, is an "electric peer-to-peer cash system," according to Satoshi Nakamoto, BTC's anonymous creator. It is a decentralized currency that is censorship-resistant as well. Bitcoin was designed to tackle several pressing issues facing the world, such as inflation. Fiat currencies have no maximum supply. Hence, governments and financial authorities can print additional money as they deem fit.
Bitcoin does away with this problem because it has a maximum supply of only 21 million coins. The concept of limited supply was introduced to provide the world with a global reserve currency far more transparent and predictive than the other policies in place.
Bitcoin has brought various benefits to the market. For one, it is a secure ecosystem where transactions are completed in a peer-to-peer (P2P) manner. The fewer mediators involved, the faster and cheaper the transactions become. This is why Bitcoin is more inexpensive to send across countries than fiat currencies.
Users can send millions in BTC within minutes and for a part of the cost of transferring the same amount of value in fiat currency. Bitcoin simplifies international payments in a significant, previously inconceivable way. Bitcoin remittance payment centers are an example of how this digital asset has helped benefit the world.
Bitcoin is not attached to any government or authority and therefore is not subject to any restrictions or sanctions imposed on fiat currencies. People can use and spend their Bitcoin without worrying about any politics. The decentralized nature of the Bitcoin blockchain network has made it a safe haven and hedge against financial uncertainties.
The flagship cryptocurrency amounts to around 45% of the overall crypto market valuation. It kickstarted 2021, trading at $28,750. It went on to reach an all-time high of nearly $65,000 in April. Although the currency experienced some pullback, experts predict the coin to soar to new highs this year again.
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Why Now Is a Great Time To Buy Ether: Unique Features and Price Analysis
It is almost impossible to venture into the crypto market without being aware of Ethereum. Ethereum is an open-source distributed blockchain platform that streamlines smart contract scripting. The network enables developers to build decentralized applications (dApps) that operate on blockchains. As a result, the platform has opened the world to a variety of new applications and functionalities.
Dapps are next-gen programs designed mainly to function within decentralized systems. They provide the world with multiple new opportunities and continue to be one of the fastest-growing areas within the blockchain space.
The potential use cases of Ethereum are endless and are powered by its native currency, Ether. ETH works as the fuel for running commands on the Ethereum network. Developers also use ETH to build and run applications on the platform.
Ether is mainly used for two purposes. It is traded as a virtual currency on exchanges in the same manner as other cryptocurrencies. ETH is also used on the Ethereum network to run applications. According to Ethereum, "people all over the world use ETH to make payments, as a store of value, or as collateral."
One of the most important advantages of Ethereum is its flexibility. While it is largely known for hosting Ether, the blockchain is also used for non-fungible tokens (NFTs), decentralized finance, and enterprise blockchain solutions. ETH is currently trading at $2,591, with a market cap of $300,948,674,670.
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Ethererum and Bitcoin: Key Differences
While both Bitcoin and Ethereum networks are powered by blockchain technology and cryptography, the two differ technically in many ways. For instance, transactions on Ethereum may contain executable code, while data affixed to Bitcoin network transactions are generally only for keeping notes. Other differences include block time. Ether transactions are confirmed in seconds compared to minutes for Bitcoin.
More importantly, the Bitcoin and Ethereum networks are different in terms of their overall objectives. BTC was created as an alternative to fiat currencies. So it aims to be a medium of exchange and a store of value. Meanwhile, Ethereum was designed as a platform to facilitate programmatic contracts and applications through ETH, its own currency.
BTC and ETH are both digital assets, but the primary goal of Ether is not to establish itself as an alternative financial system. Instead, it aims to facilitate and streamline the operation of the Ethereum smart contract and decentralized application (dApp) platform.
Read More: Better Buy: Bitcoin vs Etheruem
Why Now Is a Great Time To Buy Bitcoin and Ethereum: In Conclusion
Using cryptocurrencies is now easier than ever, thanks to more merchants and online companies adopting it. As digital assets continue to become more common, they will reach more people, leading to an increase in popularity and a surge in overall awareness.
As BTC and ETH are poised for a bull rally, it is ideal for investors to buy these assets now. An additional encouraging factor for investing in cryptocurrencies is institutional adoption. Fintech platforms like Square, MicroStrategy, and PayPal are now holding BTC on their balance sheets.
Investing in Bitcoin and Ether now is likely to generate massive returns. That said, investors are advised to perform due research before investing.
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Virtual currencies are highly volatile. Your capital is at risk.