Which is the best crypto for maximum earnings: 1 BTC or 32 ETH? Cryptocurrency expert Stu L is looking for an answer to this question.
Heavyweight showdown in the cryptocurrency ring
Top 2 projects, Bitcoin and Ethereum. Which one would you prefer? Which do you prefer to keep? This is our topic today. 1 BTC or 32 ETH. Most of us can’t keep both as it costs over $90,000. So most of us have to make a choice. Who do you think will win, Bitcoin or Ethereum?
Advantages of buying 32 ETH
If you want to run your own validator, the amount you need is 32 ETH. This will increase your returns. Then, 32 ETH costs more than 1 BTC. Currently, 32 ETH costs from $1,865 to $59,680. The current price of Bitcoin is $ 27,625. This means that 32 ETH is twice as expensive as 1 Bitcoin. Does this mean ETH is more valuable? Or does it mean it’s scarcer? Not exactly.
Ethereum has almost 227 million unique addresses. The circulating supply is 120.4 million. This means that the average ownership per address is 0.52 ETH. And like so many projects, these projects are top-heavy. ETH is on a higher level than most projects. Top 100 holders hold 39% of all ETH. This means that most of the 227 million holders hold very small amounts of ETH.
When it comes to ecosystems, Ethereum is way ahead. There are many more applications, protocols, volumes and fees than Bitcoin’s ecosystem.
Disadvantages of buying 32 ETH
Now let’s come to the anti-Ethereum side. Despite being #2 overall and the clear leader in DeFi and NFTs, it still sucks to use Ethereum. And I’m not exaggerating when I say that. It could very easily lose its number two position:
- Cosmos has better integrated applications and protocols.
- BNB Chain is faster with lower fees.
- Bitcoin is more secure.
- Solana is quickly gaining ground in NFTs.
- Polygon’s user experience surpasses Ethereum in every way.
- ETH relies almost entirely on L2s to use applications.
Ethereum’s place as silver against Bitcoin’s gold is far from safe. You know what else never happens in Bitcoin? This. Last week, someone who attacked MEV bots ran a $25 million deficit. Ethereum is full of hacks, vulnerabilities and security leaks.
That’s the truth. And that never happens in Bitcoin or its ecosystem. It never happened. This is extremely difficult to do with such high hash rates. Ethereum is currently the leader but has a lot of competition. Polygon, which has its own side-chain and L2 solutions for ETH, surpassed Ethereum in the number of daily active addresses for the first time. Ethereum is much more centralized than people would like to admit.
First, we have a high concentration of ownership as mentioned earlier. Then there’s the 70% premium that happened at its inception. Finally, we have already seen that the ETH Network is able to censor transactions at the request of the US Government. It is certainly not a censorship-resistant network. Governments are not afraid of Ethereum. They cooperate with them.
Advantages of getting 1 BTC for cryptocurrency investment
Most of us use an Ethereum or EVM implementation on a daily basis. We bet most of you are using it too. But you know what? Governments are not afraid of Ethereum. They do not work to ban Ethereum. Just Bitcoin. Bitcoin is the biggest threat to government-issued money. And that should tell you something about its value. And how strong it is. Bitcoin is king. It is the most decentralized project and the only threat to government-issued money.
Ownership of Bitcoin has changed hands much more than Ethereum. There are 45.7 million owners of 19.3 million Bitcoins in circulation. This means that the average holder owns 0.42 BTC. That’s more than Ethereum per average holder. Unlike Ethereum’s 39%, the top 100 Bitcoin holders only own 13.6%. This is a huge difference. All measures of ownership and decentralization are stronger and less concentrated for Bitcoin.
As you follow on Kriptokoin.com, Ethereum received much more institutional attention than usual on its way to The Merge last fall. Especially since they can easily invest in Coinbase or Binance and earn a rate like Treasury bonds. But in general, institutions prefer Bitcoin. To be fair, many are on the rise in both. However, there is more trading activity for Bitcoin. More companies have Bitcoin on their balance sheet. More than Microstrategy’s 140,000 BTC.
Legendary VC investor and Bitcoin bull Tim Draper advises portfolio companies to keep at least 2 payrolls worth of cash in Bitcoin and gives general advice. This came after US banks closed and systemic problems surfaced. For the average American company, this equates to 1 month of all employee salaries.
Disadvantages of buying 1 BTC for cryptocurrency investment
Now, the anti-BTC argument. While Tier 2 solutions like Stacks and Lightning Network are growing and adding more services, the biggest criticism towards Bitcoin is that its best utility is HODL. Its opponents say that just holding on and hoping for it to rise is not a high benefit for the coin.
There is no doubt that Ethereum currently has more general daily utility as its ecosystem is larger and everyone pays ETH for gas. This map we’re looking at is almost 2 years old, and look how big it is. It’s just bigger now. And if your favorite part of crypto is DeFi or NFTs or Games or Metaverse, you probably prefer ETH more than Bitcoin. Still, Ordinals looks like the real deal for Bitcoin.
Decision time!
Both are becoming less and less available. Bitcoin’s inflation is 1.67%. The next halving is in about 12 months. Ethereum’s post-Merge inflation is 0.88%. On the other hand, Bitcoin is the most monetary and money-like. Ethereum has the most protocols using it. In conclusion, my personal preference is the one I prefer to have.
The opinions in the article are those of the experts and are definitely not investment advice.