Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Analysis: BTC versus Ethereum

Ethereum (ETH), otherwise known as Ether, is a digital currency. Similar to other cryptocurrencies, Ethereum presents as an alternative to Bitcoin (BTC), Litecoin (LTC) and Dogecoin (DOGE). As a trader, your first point of call is to assess the value and relative performance of these digital currencies to the USD. As at July 22, 2017, the following exchange rates were recorded:

  • LTC – $45.67, with a market capitalization of $2,380,073,985. There are currently 52,117,457 LTC in circulation, with a maximum supply at 84 million LTC.
  • BTC – $2,785.03 with a market capitalization of $45,850,051,936. There are currently 16,463,037 BTC in circulation. The maximum supply is 21 million BTC
  • DOGE – $0.002018 with a market capitalization of $222,668,452, and a circulating supply of 110,325,847,773.
  • ETH – $223.76 with a market capitalization of $20,916,021,515, and a circulating supply of 93,473,995.

Ethereum vs. Bitcoin

In terms of overall cryptocurrency ranking, ETH comes in at number two, second only to BTC. The phenomenal growth of ETH is evident in the year to date performance of the cryptocurrency. On 1 January 2017, it was trading at $7.98. It remained range bound until March 2017 when the price more than doubled to $17.82 per unit. However, ETH gained significant exposure in the markets and the price reached $97.56 on 19 May. Since then, it peaked at $410.68 per share on June 13, and gradually tapered off to its current price of $223.96 per share. Several things are evident about digital currency trading, namely extreme volatility, high liquidity, and dramatic price appreciation. If we turn our attention to BTC for a moment, similar trends are evident. On January 1, 2017, BTC opened at $992.37 per unit. It remained relatively range bound through early April 2017, but it dramatically escalated in price towards the end of the month. By June 11, 2017, BTC was trading at $2,952.40 per unit, before retreating sharply to $1,969 per BTC on July 17. The current price is fast approaching $2,785 per BTC.

How is Ethereum different to Bitcoin?


Ethereum was developed in 2015, while Bitcoin was developed in 2009. Both use blockchain technology, and both are traded in digital form. The success of BTC has allowed ETH to prosper. Day traders find significant value with ETH, since it has significant fluctuations on a daily basis. These short-term price movements benefit those who trade Ethereum on a daily basis. As an investment option, you will do well to include it in your portfolio if you are inclined to believe that digital currency will appreciate over time. Consider that it got off to a great start thanks to Bitcoin’s popularity, and is moving in parallel with BTC. ETH is less attached to mainstream financial markets then BTC, and may be a viable option for traders seeking a safe-haven asset.

Unlike BTC, ETH has an annual cap of 18 million. This means it is possible for this currency to keep on being produced ad infinitum. BTC is limited to 21 million units overall. By 2140 the total supply of Bitcoin will be reached and no additional currency will be produced. It is currently being mined at a decreasing rate per year. It takes on average 600 seconds for 1 BTC to be mined and processed. However, ETH processing can be completed within 15 seconds. This makes it highly liquid, and extremely volatile. Both of these cryptocurrencies are decentralized, and this allows for the creation of a multitude of blockchain applications. Whether ETH becomes the new BTC remains to be seen. Its acceptance has been facilitated by the existence of Bitcoin. Presently, it is priced at less than 10% of the price of a Bitcoin, but it is rapidly growing to become an international trading and investment option.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.