Give scientific reason for the following statements. Herbivorous animals have hooves while carnivorous animals have retractable paws.
Answers
Explanation:
Give scientific reason for the following statements. Herbivorous animals have hooves while carnivorous animals have retractable paws.
Answer:
What is a better investment, Bitcoin or Ethereum?
Bitcoin and Ethereum are the two leading cryptocurrency and have been the trendsetters of the market in the past. However, interpreting which one will be a better investment is very difficult.
The recent rally in the price of Bitcoin may have supported the narrative of digital gold and as an effective store of value, on the other hand, Ethereum is also aiming to make a big impact in the market with some serious network upgrade.
Let’s have a look, which one will be a better investment.
Bitcoin or Ethereum?
With the launch of the much-anticipated Phase-0 of ETH 2.0 on December 1st, Ethereum took a big leap towards improving on the network’s scalability, speed and security.
Its migration to the new proof-of-stake system, ETH or Ether’s role is now not just limited to that of a store of value asset and fuel for transactions, it will be extensively used for staking to ensure the security of the system.
The final phase of the upgrade is expected to be completed in 2023 and will mark a significant change in fundamentals and could lead its price to move on its own, rather following the Bitcoin.
Close to the December launch of ETH 2.0, the correlation between Ethereum and Bitcoin is seen to be gradually weakening. Many crypto analysts believe the correlation might disappear any time due to changing fundamentals.
Also, Ethereum has not moved higher compared to Bitcoin and is still trading over 50% below the all-time high level of $1,432.
Bitcoin, on the other hand, is witnessing a surge in value due to three factors- increased scarcity level, accelerated mainstream adoption and institutional investors investing in a bigger number.
Having proved itself as an efficient store of value asset and its unique economics will continue to support its prices higher. According to the popular stock-to-flow price model, the Bitcoin’s price is predicted to reach $100,000 by December 2021 and $1 million by the end of this decade.
Conclusion
Technically, after the launch of ETH 2.0, Ethereum is far superior to Bitcoin because it has unlimited use cases and the model is highly scalable. This has also made ETH, the first cryptocurrency to be classified as capital assets, commodity and store of value.
But, this doesn’t make Bitcoin less significant. Its ability to hold value even at the time of crisis makes it a perfect hedge against inflation and also hedge against the failure of the centralised monetary system.
Therefore, including both in your portfolio will offer diversification and reduce portfolio risk