Bitcoin or Ethereum - Which one to exchange?

Ether, the currency used to execute transactions on Ethereum's network, and Bitcoin, have many fundamental similarities. They are both cryptocurrencies rooted in blockchain technology. This means that independent computers around the world volunteer to maintain a list of transactions, allowing each coin's history to be checked and verified.

They are both virtual currencies ​​that are actively used for their services, contracts, as well as to retain value. Their popularity has grabbed the media’s attention as well as shoppers hoping to better understand how blockchain technology can change the monetary landscape over time. However this is where most of the similarities end.

Their decentralized nature is a major change from traditional currencies, but they are not accepted everywhere. While Bitcoin is being accepted more and more, and is considered an international digital currency, only Ether is accepted for transactions within digital applications (dapps) that run on Ethereum's network.

Which one to exchange?

While traditional exchanges may peg Bitcoin as the “easier to use” out of the two currencies, both are able to be used equally through XEROF. We help you make luxury purchases ranging from real estate and other luxury goods, to over-the-counter trading for big volumes. With that being said, both currencies, as well as plenty of others, can be used with XEROF for safe, compliant & simple transactions and purchases.

The answer to the question of which cryptocurrency is better between Bitcoin and Ethereum is entirely dependent on your needs. While Bitcoin excels as a peer-to-peer transaction system, Ethereum excels when it comes to developing distributed applications and smart contracts. Thus it is entirely up to you to select a winner between Bitcoin and Ethereum.

Forecast for Bitcoin and Ethereum

After well-known services and businesses started accepting cryptocurrencies, primarily Bitcoin, as a payment option, the prevalence of Bitcoin increased somewhat. But over time, several businesses, like Tesla Inc., stopped accepting Bitcoin as payment, which had a significant impact on how the currency was used. 

People began selling off their Bitcoins in large quantities, which caused volatility in its price. Events like these are what can make the forecast of cryptocurrencies more difficult to pinpoint than other forms of investments and currencies. However, below you can find forecasts for both Ether and Bitcoin.

Bitcoin (BTC)

When bitcoin is performing well, other cryptocurrencies are likely to perform well as well. When bitcoin performs poorly, other cryptocurrencies are likely to suffer as well. Nobody, however, appears to agree on the future price of bitcoin.

Bitcoin's market value increased dramatically in early 2021. A single coin was worth $32,000 at the start of the year, and by April, that figure had more than doubled.

However, there were still very few ways to use bitcoin for anything other than speculative, high-risk trading. A drop in the stock market in late 2021, as well as a drop in highly valued growth stocks, dragged cryptocurrencies down with it.

Currently there are no guarantees for the future as inflation and looming recessions are rendering most investment markets, including cryptocurrencies, quite unstable and unpredictable. What can be said however, is that more people believe that the price of Bitcoin will keep rising, rather than decline further.

Ethereum (ETH)

It has been confirmed that Ethereum (ETH) will make the switch from the Proof of Work (PoW) method to the Proof of Stake (PoS) mechanism in August of 2022. The transition, known as "The Merge," is a feature of the Ethereum 2.0 update.

The Ethereum blockchain will change how transactions are verified once PoS replaces PoW. Miners will stake ETH currency to the network in place of using a lot of computer power to validate and construct new blocks, thus reducing the amount of energy used.

In spite of the coming upgrade, the price of Ether has been steadily declining over the course of 2022 as the crypto market overall has seen quite a noticeable dip and the market has turned bearish. Many investors are therefore considering buying into the dip, as many experts predict that the price will increase after “The Merge” and then continue to climb. 

Many people estimate that the value will slowly increase over the coming years and that it could be worth close to $4000 by the end of 2023. This is, however, speculative as the crypto currency market is especially volatile currently, making predictions and forecasts difficult to conduct.

Value over time

Let’s take a closer look at each currency and their historical values over time leading up to today.

Bitcoin

As the media coverage of Bitcoin has been quite extensive, most people are well aware of this popular currency’s value over time.

From humble numbers such as roughly $1 for a bitcoin in early 2011, to hitting the price of $1,242 just two years later in November of 2013. It is undeniable that Bitcoin has had quite an increase up until 2021, as evident by the table below.

Ethereum

While Ethereum has not been in the media spotlight quite as much as Bitcoin has, it has also seen plenty of highs and lows along the way since its launch in 2015.

Seeing prices as high as $4,811,60 in 2021, and then seeing a decline ever since as most other cryptocurrencies. With the upcoming changes to Ethereum, many experts expect the value to return to the ATH (all time high) within a year or two though.

Conclusion

While both Bitcoin and Ether are seeing lower numbers this year than in previous years, just as most other cryptocurrencies are. It does not mean that it is all over, both of the currencies mentioned above have seen dips in the past, and will most likely see several others in the future.

Regardless of which of the two currencies you personally prefer, here at XEROF you can feel safe in making transactions with either one.