Bitcoin is considered by many investors to be the ultimate when it comes to investing in the crypto market. And the numbers at first glance also clearly speak in favor of buying Bitcoin.

According to the figures from Coincodex, Bitcoin currently has a market capitalization of 650 billion dollars. Significantly more than the value of Ethereum, which currently stands at just under $ 278 billion. Also, the trading volume shows that investors are still primarily betting on Bitcoin. In the past 24 hours, BTC worth more than $ 63 billion has been traded. Meanwhile, Ethereum worth a good 48 billion dollars was moved during the same period.

Bitcoin continues to be clearly preferred over Ethereum even among institutional investors. Whether Tesla, MicroStrategy or Square – companies that put billions into the crypto market do this mainly to use BTC as a store of value in times of dollar inflation. Even large asset managers like Grayscale primarily recommend their clients to buy Bitcoin.

Ethereum is technically far ahead of Bitcoin

But is this really still up-to-date? Or is Ethereum not the better Bitcoin? Current figures at least suggest that Bitcoin no longer seems untouchable as the leading currency in the crypto market. Technologically, Ethereum has been pulling away from the competitor for a long time. With the introduction of Ethereum 2.0, Ethereum becomes more environmentally friendly, resource-saving and adaptable for more applications than Bitcoin.

However, Ethereum Bitcoin could also sooner or later run out of steam in terms of economic indicators. This is what the US bank Goldman Sachs believes. In a recent communication from the bank, it says:

“ETH is currently the cryptocurrency with the highest real-world usage potential, as Ethereum, the platform on which it is the native digital currency, is the most popular development platform for smart contract applications.“

The analysts of Goldman Sachs continue to argue that Bitcoin is currently still the stronger brand, as BTC is the pioneer among cryptocurrencies and investors of the first hour are still absolutely behind the Bitcoin. But the bank believes Bitcoin can’t keep up with Ethereum’s broad use cases in terms of adaptation, offering slower transaction times. The bottom line is that the functionality of Ethereum is higher than that of Bitcoin.

In terms of price performance, Ethereum could grow even stronger than Bitcoin in the next few years due to its recent history.

Ethereum-beats Bitcoin price significantly

Comparing the price performance of Bitcoin and Ethereum, ETH / USD has clearly been the better investment for investors lately than BTC/USD. This is shown by the following figures from Coincodex:

Growth of BTC and ETH within the last…

5 Years:

ETH / USD: + 22,500 Percent
BTC / USD: + 5.260 percent

3 Years:

ETH / USD: + 403 percent
BTC / USD: + 425 percent

1 Year:

ETH / USD: + 940 Percent
BTC / USD: + 280 percent

6 Months:

ETH / USD: + 100 percent
BTC / USD: – 7 percent

3 Months:

ETH / USD: + 15 percent
BTC / USD: – 40 percent

1 Month:

ETH / USD: – 12 percent
BTC / USD – – 4 percent

In almost all the periods compared, the Ethereum price has performed better than Bitcoin. The differences between the last 5 years and the last year are particularly serious.

Bitcoin: the digital gold is strictly limited

But is it to be assumed that the trend will continue and can Ethereum replace Bitcoin as the number 1 cryptocurrency in terms of market capitalization and trading volume in the long term?

One argument against this is that the amount of Bitcoin that will ever be in circulation is clearly limited by Bitcoin inventor Satoshi Nakamoto’s white paper. So there will never be more than 21 million BTC. But what happens when all Bitcoins are mined? Many experts expect a further price explosion of BTC at the latest then. Because of the limited supply, the value of Bitcoin can only be measured by price increases or higher prices.

In view of this development, many institutional investors continue to rely on Bitcoin and not Ethereum. For them, BTC provides an excellent store of value and a hedge against asset devaluation. Fiat currencies such as dollars can be printed virtually limitlessly and thus do not represent inflation protection from the point of view of BTC supporters.

However, it can already be calculated with a high probability that the last Bitcoin will be mined in 2140.

Ethereum Could Knock Bitcoin off the Throne-at Least Temporarily

On the other hand, Ethereum does not have a maximum number of ETH tokens that can enter circulation in the future. That’s why for many investors, despite all the advantages of the Ethereum ecosystem, ETH is not a real alternative if cryptocurrencies are to serve as a store of value.

On the other hand, the development of recent years shows that confidence in Ethereum is growing. Due to its versatile application scenarios, it is quite possible that the hype around ETH will at least temporarily lead to the fact that Bitcoin can be supplanted in the ranking of the most valuable cryptocurrencies.

Digitalcoinprice

Only the most recent bull market 2020/2021 has shown how quickly crypto values can explode. Within a few months, altcoins such as Binance Coin or Dogecoin have advanced among the 5 most valuable cryptocurrencies, increasing their value by thousands of percent. And the gap between Ethereum and Bitcoin in terms of market value is currently only 130 percent. A blink of an eye for crypto ratios.

Ethereum in the future at $ 34,000?

Also, many analysts estimate that Ethereum still offers a lot of potential to keep up with Bitcoin in price development or to move past it.

The analyses of digitalcoinprice.com ETH / USD by 2028 to a rate of more than $ 10,000. Compared to the current level, this would correspond to an increase of almost 350 percent. Almost the same growth rate they forecast for the Bitcoin price with a price target of just under $ 160,000 by 2028.

The forecast for Ethereum from the analysts of Coin Price Forecast is even more bullish. They expect a price of up to $ 34,000 per ETH by 2033, an increase of nearly 1,400 percent. The assessment of the Bitcoin price is much more cautious. Here, the price target for 2033 is around $ 130,000. Compared to the current level, an increase of “only” 270 percent.

Digitalcoinprice

All those who continue to invest in Bitcoin rather than buying Ethereum now are betting on the future. Because it will still be around 120 years until the last Bitcoin is mined. Whether fiat currencies will still exist until then and what role digital currencies such as Bitcoin will play, no one can foresee today.

In addition, there are persistent stores of value such as gold, which some analysts still see as better inflation protection against Bitcoin. Among the analysts at Goldman Sachs, gold continues to be “a superior store of value over digital assets,” according to the bank. They refer to gold as a defensive inflation hedge for investors, while Bitcoin, Ethereum and other cryptocurrencies are classified as a risky hedge.

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