Excerpts from CareYourPresent – a crypto enthusiast
ETH vs BTC – Recent price trends
For those who are into Crypto, you will likely notice the less co-relation between ETH vs BTC recently. Let’s look at the price trend of ETH and BTC chart carefully.
Chart source: Tradingview YTD Chart
Look at the charts (YTD, 6M) above carefully, what did you observe? Did you notice something very interesting? Although BTC and ETH are both down YTD, but ETH rebound is getting stronger as compared to BTC?
Let’s put this into table format to see it better.
ETH vs BTC – Reasons for the recent price trends
Did you notice the pattern above? Both ETH and BTH are down, but ETH are slowly going up more in percentage as compared to BTC? Why so bullish about ETH instead of BTC? There are few reason(s) which I can think of.
Reason 1: Usefulness
Both are coined as “Queen” and “King” of Cryptocurrency. Bitcoin is generally known as a store of value (like your physical gold, hence people tend to call it “Digital Gold“) vs Ethereum supports smart contracts, DeFi and secure financial cryptocurrency transactions etc.
In term of “usefulness“, ETH definitely rank higher. Of course although BTC is “useless” except for “store of value“, people still buy it. But why? This is the same reason as why people buy the useless real physical gold for thousands of years.
Is gold really useful? Can you eat the gold?
Let’s use the famous term “thought experiment” which our great scientists always use. Imagine, 5000 years ago, someone rich and powerful stumble into a piece of nice shiny marble instead of gold (yes the toy marble that we use today) and words spread/rich powerful people advertise, value it etc. As for gold, no rich and powerful people like it.
What will happen if you fast forward to today? Toy marble become value whereas gold become not valuable at all. What am I trying to drive at?
Real digital gold is perceived store of value since thousand of years ago and is still valuable today. Bitcoin is also perceived store of value for the last decade. Will Bitcoin continue to be the perceived store of value hundred years down the road? Your guess is as good as mine.
I am personally more bullish in ETH than BTC for the longer term simply because ETH is more useful.
Reason 2: ETH Merge
What is ETH Merge? Basically the ETH Merge will complete Ethereum’s transition from Proof of Work to a Proof of Stake system. This is expected to occur on 19 September 2022. You can read more about this in ETH site itself. Basically this news cause people to be bullish about ETH
Reason 3: The most powerful and the most important reason
This is the most powerful and more important reason that cause ETH to pump. This is the best reason which you can think of that result in the ETH pump. Without this reason, ETH will not be so bullish and goes up more than BTC in %.
It’s the greatest reason of the century that cause ETH to be the most bullish in the short term.
Guess the reason?
Slowly slowly scroll down to find out…
Bear is getting long and people need some fun in life isn’t it? Remember to Careyourpresent and be happy. Life is much more important than anything else. Do also read my Careyourpresent Series