Choosing Between Ethereum and Bitcoin in the Face of Heightened Macroeconomic Risks

Source: commercial view

With assets under management of $23 billion, GBTC tracks the Bitcoin (BTC) market price and charges a 2% fee. As for ETHE, it covers Ethereum (ETH), exposes $7.5 billion in assets and bears 2.5% fees. Both are investment vehicles that have achieved SEC reporting company status, with one of their advantages being the ability to provide investors with exposure to BTC or ETH in the form of securities while avoiding the challenges of buying, to directly store and keep crypto-currencies.

Coming back to the difference in price actions, this needs to be understood in the context of their individual uses, but, first, I make some clarification as to the concept.

Analyze the concept of cryptocurrency

Although the concept of cryptocurrency shines with its appeal, it remains obscure to many people until they hear about its ability to provide dizzying gains and, conversely, also suffer from downfalls. vertiginous. For that matter, there is also a lot of publicity around crypto being a Ponzi scheme, which is far from the truth.

If this had been true, reputable institutions would not have invested their money in digital coins. Also, unlike Ponzi schemes which require a constant flow of fresh money to survive, Bitcoin and Ether have not only survived multiple crashes, but there are other new coins being minted every day.

Continuing further, those who put their money into Bitcoin in mid-2021 and before are still on the rise, despite all the latest volatility. Yet, people mainly invest in cryptocurrency because of its high growth characteristic and hence its ability to quickly multiply the value of their financial assets in dollar terms. That said, Bitcoin still has to find the right balance between a means of payment and a financial asset. This virtual currency is above all a potentially profitable investment.

To gauge the market place, Bitcoin remains very popular with retail investors who, in addition to ETFs or trust formulas, can buy it from platforms dedicated to crypto-currency or traditional brokers, just like the purchase stock market shares. Looking further, FinTechs like PayPal (NASDAQ:PYPL) also offer services like crypto wallets.

Scanning the corporate space, Bitcoin has been embraced by some financial institutions to boost their balance sheets. Realizing that the risk factor is inseparable from Bitcoin as evidenced by the current volatility, these institutions including Tesla (NASDAQ:TSLA) did not sell their crypto assets. Others like MicroStrategy (NASDAQ:MSTR) even bought the dip. This shows a high level of trust.

Today, the crypto market is vast, and as Coinmarketcap shows, there are hundreds of coins, including those with the ten largest market caps listed below.

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