Is Ether ($ETH) a better long-term bet than Bitcoin ($BTC)?

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Although $BTC and $ETH are currently down around 75% from their all-time highs (which were reached in November 2021), a number of recent tweets and articles about these two cryptocurrencies suggest that the general perception in the crypto community is that the latter is probably a better long-term bet.

It’s hard to say for sure if Ether (ETH) is a better long-term bet than Bitcoin (BTC). Both cryptocurrencies have their own unique characteristics and have performed well in the past, and it is ultimately up to individual investors to decide which best suits their investment goals and risk tolerance.

One argument in favor of Ether as a long-term investment is its potential for wider adoption. While Bitcoin is primarily used as a store of value and a medium of exchange, Ether has the additional use case of powering smart contracts on the Ethereum platform. This makes Ether an attractive investment for those who believe in the potential of decentralized applications (dApps) and the wider adoption of blockchain technology.

Another argument in favor of Ether is its strong developer community and support. Ethereum has one of the largest and most active developer communities in cryptocurrency, which has helped the platforms continue to evolve and grow. This strong community support can provide a level of stability and security for Ether investors.

However, it should be noted that Bitcoin also has a strong community of developers and has proven to be a resilient and secure cryptocurrency over the years. Bitcoin has the advantage of being the first and best-known cryptocurrency, giving it a level of brand recognition and mainstream visibility that Ether does not yet have. Additionally, Bitcoin has a limited supply of 21 million coins, giving it a level of scarcity that may make it a more attractive store of value for investors.

On Thursday (January 5, 2023), Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence (Bloomberg’s research arm on the Bloomberg Terminal), shared his outlook for Bitcoin and Ethereum.

In the January 2023 edition of the Bloomberg Intelligences Crypto Outlook report, McGlone (and the two analysts he worked with on this research) said:

Ethereum’s upside performance against Bitcoin has not been shaken by the 2022 deflation in most risk assets and could gain ground. With a ratio of around 0.07, the Ethereum/Bitcoin cross rate is the same as in May 2021, when the Nasdaq 100 stock index was around 20% higher.

Our chart shows the long-lasting trend of crypto #2 outperforming #1, which seems to coincide with the rise in risky assets. The index’s ~30% drop in 2022 is part of a falling tide, including a ~70% drop in Ethereum. Migration to the mainstream is what we get out of this, and once the dust settles from some reversion in risky assets amid inflationary pressure, Ethereum looks more likely to pick up what it was doing. by overperforming.

Popular pseudonymous crypto market analysis host Coin Bureau says that if the Shanghai upgrade goes well, 2023 could be a very big year for Ethereum and for ETH.

According to a report by The Block, at Ethereum Core Devs Meeting #151, held on December 8, 2022, a tentative timeline for the completion of the Shanghai upgrade, also known as the Ethereum Enhancement (EIP) 4895, has been fixed. This upgrade will allow users to withdraw their staked funds from the Ethereum blockchain, a feature that is currently unavailable. According to Cointelegraph, the developers will be aiming for May or June 2023 to launch the Ethereum-danksharding upgrade to the network.

Last month, Coin Bureau released a video update (titled Q&A: ETH Predictions, BTC & Crypto Market in 2023!) and according to a report from Daily Hodl, the show host had this to say about the Potential impact of the upcoming Shanghai Network Upgrade and overall outlook for Ethereum in 2023:

When they see that this ETH can actually be unstaked and easily sold, it might inspire them to stake themselves. So I really think it can go both ways. Now, I wouldn’t be at all surprised if it was slightly bearish in the short term if we saw some selling. But I think the future of ETH is so, so bright, and I think Shanghai, assuming it goes smoothly like the merger did, so I think 2023 could be a really great year for Ethereum and for ETH…

Price prediction, I don’t know, I don’t think we’re going to see a five-figure ETH in 2023, but I think it’s entirely possible. We could, of course, see a flippening, but I’m not sure. I expect some sort of sideways price action for ETH over the next year.

On August 19, 2022, Real Vision Founder and CEO Raoul Pal took to Twitter to say that while he doesn’t expect the price of Ether to hit new lows (c i.e. it drops below the June 18th low of $902), there could be a quick test. drop; however, he also pointed out that for him, further lows mean he will buy even more ETH since he finds the 2-year risk/reward of Ethers quite attractive.

Essentially, Pal thinks that at worst, ETH$ could fall into the $800-$900 range, but the upside is much bigger because, as he’s said in the past, he expects for the price of ETH$ to reach $20,000 within the next two years.

Ah, the cheeky old crypto pre-merger shakeout I see, I don’t expect any new lows, most likely a quick gut check drop, but let’s see.

New lows = keep adding (for me) as the 2 year risk/reward becomes really, really attractive

50% downside against 10x more possible = 20:1 R/R#ETH #BTC

Raoul Pal (@RaoulGMI) August 19, 2022

A popular crypto analyst who agrees with Pals’ view that Ethereum will outperform Bitcoin in the next few years is Ben Armstrong, who told his 880,000+ Twitter followers that he expects $ETH has a market capitalization greater than $BTC by 2025:

2017: Ethereum outperformed Bitcoin2021: Ethereum outperformed Bitcoin2025: THIS TIME WILL BE DIFFERENT

Yeah it will be different. Because $ETH will have a market cap greater than $BTC in 2025

Ben Armstrong (@Bitboy_Crypto) August 19, 2022

Of course, there are those who believe that Bitcoin might actually be the best store of value asset and that as this opinion becomes more widespread, the price of a Bitcoin over the next 10 years could easily reach 1 million (something that Cathie Wood, CEO of ARK Invest, believes) and possibly even reaching $23 million (as Blockware Solutions seems to believe).

Regardless of which of these two cryptocurrencies has the greatest potential for long-term price increases, one thing that seems undeniable is that Bitcoin has much higher regulatory clarity in the United States than Ether since the former President Jay Clayton and current SEC Chairman Gary Gensler have on several occasions confirmed that they view Bitcoin as a commodity rather than a security and therefore outside their purview. Unfortunately, the same cannot be said for Ether.

Apart from what William Hinman, former director of the SECs division of Corporation Finance, said during a speech in June 2018, the position of the SEC is that it has never stated in any official form that Ethereum is a commodity or a security, i.e. it is possible (especially if Ripple Labs loses the pending lawsuit filed against it by the SEC in December 2020) that on any day in the future, the SEC could decide to declare Ether a security, which could have a huge negative impact on its price since crypto exchanges in the United States would then have to delist it.

So, while we can’t be sure which of these two cryptocurrencies is the better long-term bet as far as profit potential goes, at this point, with the lack of regulatory clarity we currently have in the States States, the safest long-term bet seems to be Bitcoin.

It is important that investors carefully consider their individual goals and risk tolerance before making a decision. It can be useful for investors to diversify their portfolio by including both Ether and Bitcoin, as well as other cryptocurrencies and traditional assets. It is also important that investors are aware of the risks inherent in investing in cryptocurrencies and carefully research and understand the assets they are considering before making any investments.

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