Home News Here’s why Bitcoin will outperform Ethereum in the short term

Here’s why Bitcoin will outperform Ethereum in the short term

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David Lifchitz, chief investment officer at ExoAlpha noted that Bitcoin (BTC) could outperform Ethereum (ETH) in the short term. This is indicated by the high ratio of the BTC / ETH pair. This means that BTC tends to become more valuable than ETH.

News resources about cryptocurrencies simply “burn” from oversaturation with news about the top two leaders. Most of all, the world monitors their price performance. As the leaders surprise with record values, then break the next bottom.

Thus, Bitcoin has fallen in price by half after a record high recorded in April this year. Ethereum also fell in price against this background. Today Bitcoin is trading at $ 37,600. Lifchitz said that at this stage, Bitcoin needs to break the $ 42,000 mark to confirm a short-term bullish bias. After that, the cryptocurrency can grow to $ 50,000 in a short time.

At the same time, the expert drew attention to the fact that the restriction on the emission of Bitcoin has a positive effect on the asset rate. “The demand for BTC is growing. More and more people want to buy a piece of Bitcoin, while the offer is strictly limited to 21 million”.

As we can see, the expert is optimistic about BTC, but he also bets on Ethereum and believes that there is a possibility that it will surpass BTC in the near future.

Michael Saylor of MicroStrategy, known for his support only for BTC, also noted that Ethereum and several other cryptocurrencies have a place in the ecosystem. Aside from brief praise for Ethereum and stablecoins, Saylor highlighted the merits of BTC over all other investment vehicles, as he has done many times in the past. He noted that Bitcoin outperforms gold as a protection against inflation by 50 times.

Bitcoin and Ethereum are two different systems

According to experts, the assessment of the cryptocurrency should be given based on the analysis of its demand among users and investors, the reputation of the project, the level of decentralization and resistance to various risks. According to the indicated indicators, experts are sure that Bitcoin has no equal yet.

Ethereum has certain advantages, such as the ability to build decentralized applications on its blockchain and write smart contracts. But in terms of preserving value, BTC looks more reliable.

Bitcoin capitalization is about 4 times higher than Ethereum’s. So, according to the expert’s observations, it was during the entire existence of these currencies. At the same time, such a distribution of forces, in his opinion, does not mean that in the future, ETH cannot surpass BTC.

Bitcoin and Ethereum are different currencies in their purpose. According to experts, when buying Bitcoin, investors seek to hedge against the devaluation inherent in fiat currencies. Ethereum, in turn, is a fundamentally different currency. There are many tokens and blockchain applications made on the ETH blockchain.

As a result, we get two different systems – both in terms of functionality and principles of operation. However, they are not direct competitors. Despite the fact that Bitcoin and Ethereum are called cryptocurrencies and they are ranked one after another, it is not entirely correct to compare them.

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