It’s always easier for people to believe in the original product before the rest. That’s the reason why bitcoin has maintained position one for over 12 years. Bitcoin and Ethereum have dominated the industry, occupying almost 75% of total cryptocurrencies.
There are more than 7000 cryptocurrencies across the world. Some succeed, but most don’t stay for more than two years. Sometimes it isn’t easy to decide which cryptocurrencies are legitimate to invest in. Only a few can guarantee safe investments, but you must know investing in any digital asset is risky. Despite that, there are only two popular cryptos, bitcoin and Ethereum, that you can mine their coins and hold for some years.
Why Bitcoin?
Bitcoin has proven that crypto is worthy and can be used as a store of value. There was too much hate and discouragement in the early pre-seed period of the crypto industry. Nobody believed that blockchain ledgers could transform into trusted currencies. As a result, Bitcoin has the largest market gap compared to the rest of crypto.
It was created during the worst inflation of fiat currency in 2009. Bitcoin acts as the pioneer of other cryptocurrencies and blockchain technology. When it comes to investment, we have a lot of people who made their billions in crypto.
Furthermore, bitcoin is used worldwide, and people transact their currencies with less transaction fees. According to the research by the World bank, almost 1.7 billion individuals do not have bank accounts. Other countries have the worst volatile currencies; hence, citizens do not trust their governments. This is brought up by political instability and corruption.
Such negative effects make bitcoin the best option to replace fiat currency. You don’t need a bank account to store your coins. Recently, the El Salvador nation adopted bitcoin as their legal tender. Its citizens are now able to purchase products and pay taxes using bitcoin. Nayib Bukele brought out the rule to help 70% of the citizens who had no bank accounts to access the financial systems. El Salvador is not very stable, but they have made a big step with such changes.
In the United States, almost 2 million people possess digital assets. A good number of them refer to bitcoin as digital gold. It can certainly hedge inflation since the number of coins is limited to 21 million only until 2041. Its become part of our financial system daily. There are also popular influencers like Tim Cook, CEO of Apple, who has bought several bitcoins. Elon Musk is also ahead with some shares in the bitcoin system.
Furthermore, some banks have collateralized loans with bitcoin. In general, this coin plays a major role in our society.
Why Ethereum?
Bitcoin and Ethereum are here to stay. Some people refer to Ethereum as crypto that colonizes the cryptocurrency industry. Its role is very diverse, with expansions of functionalities in the blockchain industry. The smart contract pioneer has helped even other minor cryptos grow. Ether led to the growth of decentralized apps, and developers have opted for web3. It provides a simple platform upon which NFTs are built and sold in the digital market.
The Ethereum team has promised to cause some destruction in various industries, from ID management to healthcare. However, the transition of Ethereum to proof-of-stake protocols has many advantages. Such positive migrations have reduced the effect of draining much energy during mining.
The launching of Ethereum 2.0 has also reduced the transaction cost from one user to another. Ether has a long lifespan, and possessing some of its coins will be rewarding.
Although many cryptocurrencies are coming up, none can outweigh bitcoin and Ethereum. These two legends are being used in everyday lives across the world. Let’s invest smartly.
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