I will buy ethereum instead of Bitcoin. Here’s why.

I will buy ethereum instead of Bitcoin. Here’s why.

By Dzoelx | Scripts | 30 Sep 2020


A glance at the charts shows you two glowing cryptocurrency assets – bitcoin and ethereum. Sitting at the first and second position, bitcoin and ethereum has dominated modern cryptocurrency markets. Both playing important roles in the growth of blockchain technology. Bitcoin retaining the ‘alpha’ figure and the pioneer image. Ethereum standing tall as one of the most technologically advanced blockchains of the early cryptocurrency days; Not sure if it still bears that image currently, but yeah, it deserves its place on the charts.

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Bitcoin dominates the cryptocurrency market capitalization; in a market worth over $350 billion, bitcoin accounts for over 55% of the whole cryptocurrency market capitalization, sitting comfortably at the top with over two hundred (200) billion dollars in total market worth. Bitcoin maximalists continue to bask in the glory of bitcoin’s market prowess, the entire crypto space unarguably benefits from bitcoins heroics.

Well, hitting the market with 1000USDT, what would you love to buy. You probably have your eyes set on some altcoins, Defi coins especially. But, wait…there are only two options here; bitcoin and ethereum. What are you buying? Let’s talk about it! Hit the comments with your choice and why!

Two options, two relatively different figures, yet very much alike. Bitcoin and ethereum; while one is one of the most valuable digital asset and popular store of value, the other represents an advancement from the ‘store of value’ notation and goes miles more to portray the utility potential of blockchain technology. I will leave you to decide which one fits each description.

Not going into criticism of any choice, you’ll probably be right with any choice you make…if price and return on investment was the major aim. That won’t be the case if we had to focus on utility for a second.

Different altcoins solve important problems and with each new reputable altcoin project comes new solutions and/or an improvement on existing solutions to further emphasize on the utility of blockchain technology. Ethereum leads this space of ‘utility blockchains’. The perception of bitcoin as just a store of value gave birth to the much heated comparison between bitcoin and gold. However, the blockchain technology and cryptocurrencies are more useful than this. This orientation places cryptocurrencies in the same position as gold. Gold still remains a term of luxury and a store of value despite being almost as old as man itself.

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But in the real sense, bitcoin and gold have some correlation, this is different with ethereum, being a really useful blockchain. Relative to its utility, ethereum is pretty much an undervalued asset, many would argue against this. The real market capitalization of ethereum would be the cumulative capitalization of ethereum smart contract tokens and ethereum itself…that’s hilarious, I know. Personally, I do have a very strong conviction about ethereum. Apart from its recent outrageous transaction fee, slow transaction speed and poor scalability it has been pretty more stable than any other altcoin project.

Ethereum has housed many notable projects before they launched their mainnet, the ICO boom was a brainwork aided by the ethereum blockchain. A good percentage of autonomous altcoin projects only surfaced and survived because they utilized the ethereum blockchain.

Ethereum is far from done in its duty of bringing new projects to life and housing existing ones while spreading the real virtue of blockchain technology. In the real sense ‘ethereum lead, most other altcoins follow’. Decentralized finance projects are rampaging the crypto space.

Decentralized financial (DeFi) systems comprises applications built on top of blockchains which facilitates permissionless financial services and provides a seamless option for running financial activities. DeFi hopes to introduce the core virtues of blockchain technology to the financial system.

DeFi projects are expanding the scope of financial systems, shifting the paradigm from ‘portable means’ of payments to smart contract applications running independently on a parent blockchain and offering advanced financial services such as insurance, lending, wealth management and an array of other financial management using blockchain resources and exhibiting desired blockchain features such immutability, security, privacy, speed and interoperability.

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If DeFi was really such a brilliant invention, then ethereum should worth way more than any Defi coin out there. You’ll have to let go of about $30,000 to buy one Yearn finance token…you should pay more for one ethereum too, pun intended. Ethereum is winning the defi game despite its shortcoming…most other blockchains trying follow suit is simply ridding on Ethereum’s back.

Way before Defi became a thing, ethereum has been ruling the crypto space in terms of bringing real utility to the technology and supporting the creation of utility projects. A couple of autonomous projects still bears a striking resemblance to their parent blockchain – ethereum. Theta wallet addresses still look very much like an ethereum address and their smart contract platform is being likened to Ethereum’s. You can say the same for a couple more autonomous blockchains. This shows the sticky influence of ethereum.

Your choice defines you. An investor who is merely attracted to the financial prowess of a digital asset and its brilliant performance in the market will easy through 1000 USDT on bitcoin. In contrast, a technology enthusiast who really sees blockchain as a technology poised to make even more history in the future will surely pick up some ethereum. The preference is completely non-sentimental.

However, I understand that a greater percentage of contemporary participants of the blockchain revolution are actually here for the ‘lambo’ and moon dreams, thus if a poll is put up bitcoin will overrun ethereum in terms of what people would prefer to buy. This is very much expected. But if we set our complete focus on what a technology really means, then buying ethereum is a ‘no brainer’.

Over to you, what would you buy with 1000USDT if the only option was bitcoin and ethereum?


Dzoelx
Dzoelx

Programmer|blogger|freelance writer | medium : https://medium.com/@joelagbo


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