Bitcoin price rose 10 percent on Monday after taking a major slump after hitting an all-time high a few weeks ago. $ 15,000 (£ 10,800) has lost its value, falling below $ 50,000 (£ 35,000) for the first time since March. It is currently trading at £ 39,000, a slight increase from this week’s level. This is because many fear that the US government might hit Bitcoin with regulations due to environmental concerns.
One expert believes that attention will soon be turned to another crypto asset – Ethereum.
Ethereum has bucked trends in recent weeks, hitting a record high last week thanks to a “perfect storm”.
It hit above $ 2,600 (£ 1,873) each on Thursday – for the first time in its history – after trading below $ 200 (£ 144) just a year ago.
An expert claimed this week that Ethereum has more potential than the more established Bitcoin and could even outperform it in value in the next few years.
Simon Peters, an analyst at eToro, told Crypto AM, “Ethereum could certainly challenge Bitcoin for first place among crypto assets in terms of market capitalization, but it will be a few more years before it could possibly happen.
“We need to remember that both tokens were created for different reasons. Bitcoin is a decentralized currency and Ethereum is a platform for building decentralized apps that use smart contracts. “
He added that the value of Ethereum is expected to rise faster than competing crypto assets, and that it has more potential for use in the “real world” than Bitcoin.
Mr Peters added, “At this point, Ethereum arguably has more potential for more realistic applications, resulting in a broader ecosystem than Bitcoin.
“Numerous DeFi applications such as Uniswap, MakerDAO and Chainlink, to name just a few, are currently being created. Smart contracts and NFTs are also supported.
“Granted, part of Ethereum’s success can be traced back to Bitcoin and the interest in crypto assets that it created.
“With far more activity and an increasing number of users projected for Ethereum, I expect the total network value will increase due to the number of applications building on it, and the price of Ether could increase by a again.” faster pace. “
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Mr Peters also stated that Bitcoin had a six-year lead over Ethereum, with the latter at an astonishing value in mined tokens.
He added, “If you look at where Bitcoin’s market cap was six years ago, it was roughly $ 5 billion (£ 3.6 billion) while Ethereum was at a similar point in time in terms of its life cycle (six years since its inception) a market cap of $ 300 billion. (£ 216 billion).
“While the two have traded in tandem for the most part over the past three years and the crypto asset market begins to mature, investors will examine and evaluate the broader range of assets that has the best long-term potential.
“Bitcoin has drawn the attention of millions of investors, but Ethereum offers an alternative. Since the dollar valuation of Ether is well below that of Bitcoin, it also appeals to investors who want to own whole coins, which is now far more expensive with Bitcoin.
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“With the widespread use of the Ethereum network after the last upgrade, the crypto asset continues to offer many opportunities for developers and investors.”
The UK’s Financial Conduct Authority (FCA) warned investors about the risks Bitcoin posed after the recent slump.
They said, “When consumers invest, they should be ready to lose all of their money.
“Some investments that advertise high returns on crypto assets may not be subject to regulation beyond the fight against money laundering.
“Considerable price volatility, combined with valuation difficulties [Bitcoin] Reliably expose consumers to a high risk of loss. “
Express.co.uk does not provide financial advice. The journalists who worked on this article do not own Bitcoin.
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