This is one of those questions we get asked on a daily basis — should I buy Bitcoin or Ethereum? Or should I go for some yet-to-be-discovered cryptocurrency? What will get me the highest return?
Those sort of questions are hard, if not impossible, to answer. We will, however, try to give you some perspective, providing you with a point of view for three different scenarios.
Point of View #1: Buy Bitcoin
There are many reasons to love Bitcoin:
- Bitcoin is the world’s first cryptocurrency, the fact that makes it worth more than any other crypto-token.
- It is considered a digital gold, and have proven itself as a store of value; it is a “default” option in the cryptocurrency world. (related: Is Bitcoin the new gold?)
- Bitcoin is still the most widely accepted cryptocurrency in the world.
- The fact that it has a limited supply — 21 million bitcoins — will only make it more valuable in the future.
- Bitcoin has a large eco-system that spans both small companies and major corporations.
- Bitcoin is resilient having faced and survived crashes, hacks and an internal civil war.
Or you may want to put your eggs in a different basket…
Point of View #2: Buy Ethereum
As you probably already know, Ethereum is a newer platform that includes several enhancements compared to the Bitcoin network:
- Ethereum supports smart contracts which in turn enable decentralized apps (dapps) – they could help make Ethereum a de-factor standard for this sort of apps.
- Ethereum is also currently the ICO launch pad, enabling creation of other cryptocurrencies. This capability also allows startups to raise money directly from the general public.
- Ethereum has the potential to scale better than Bitcoin, making it better suited for everyday use.
- Like Bitcoin, Ethereum also has business support through the Enterprise Ethereum Alliance (EEA) that spans startups, banks and major corporations.
- Again like Bitcoin, Ethereum had its share of problems and have survived to “tell about it.” That’s why we also have Ethereum Classic.
There’s also another point of view…
Point of View #3: Buy both and/or buy some other cryptocurrency
Many cryptocurrency experts say it is best to invest in both Bitcoin and Ethereum, since these two are most likely to stay relevant in the long run.
Today we have more than a thousand different cryptocurrencies and at one point, some consolidation will take place and some cryptocurrencies may cease to exist. Chances are Bitcoin and Ethereum will survive, no matter what. So it may be best to buy both of them.
On the other hand, some other folks think you should diversify your investments across the spectrum, arguing it is the less-known cryptocurrencies that deliver the highest returns. The problem, however, is that some of those tokens may be more volatile than Bitcoin and Ethereum, so you may end-up losing a lot. Or winning big, based on where the market goes.
In any case, you should explore all of you options before spending a single dime of your hard-earned cash. The time is right, and you should find a cryptocurrency you like and vote for it with your money.
That being said we must add this article isn’t meant to serve as an investment advice. We can’t provide you with one. But for what it matters, we do walk the talk, if you know what I mean. 😉