Bitcoin and Ethereum – should I buy it?

2 min reading
BTC Has Been Worth Investing In For Nearly 99% Of Its History!

The hype for cryptocurrencies, especially Bitcoin, started a few years ago. Since the Bitcoin’s boom in 2017, when its price crossed the point of $10 000, BTC’s value has been dropping significantly.

However, in 2019 the price has risen again. So is it worth buying Bitcoin? This question also applies to Ethereum (or Ether), the second most popular cryptocurrency.

What makes Bitcoin attractive to investors in 2019?

Bitcoin is a good option due to its high popularity. From the beginning of its existence, Bitcoin has always been a favourite among fans. But the recent price increases also arouse the interest of veterans in the market. At present, Bitcoin's market capitalization is $127 billion with a unit price of $7,500. 17 million Bitcoins have already been mine, out of 21 million Bitcoin in existence.

What is the issue?

Bitcoin, developed in 2009, is much slower than other cryptocurrencies. It’s also struggling with scalability issues. That's why the Bitcoin Foundation has incorporated Segregated Witness, or Segwit, to solve some of the problems. The mainstream media, many cryptocurrencies enthusiasts, as well as ecologists, point out the problem of energy consumption, which comes with the mining. It consumes a lot of energy - about 23 TWh, which would be enough to supply the whole of Ecuador with energy.

Ethereum – is it really worth the money?

Ethereum has been created in 2013 by a Canadian developer, Vitalik Buterin. It's the first smart contract platform, enabling decentralized applications to become a reality. Operational since 2015, the Ethereum platform has facilitated the creation of many decentralized applications (DApps). Some of them are platforms with their own tokens. In fact, there is a total of 170,076 tokens issued on the platform. All of them use ETH tokens to facilitate transactions on their blockchains, enabling a steady demand for ETH, a fact which is appealing for the interested investor.

Risks of Ethereum

Unfortunately, there are some risks to buying Ethereum. The token’s history cannot really be called a clean one. Since its inception in 2015, the platform has had two exploits, one called the DAO Hack, and another the Parity bug. In the first case, the total damage amounted to 3.6 Million ETH, while in the latter case the damage was approximately 1 million ETH. Consequences were severe, but the platform has survived and thrived ever since. Besides, the platform itself wasn't responsible for those hacks. The attacks came from outside, completely evading the platform’s safety measures.

Buy or not to buy?

While Ethereum is a platform, and a Bitcoin a cryptocurrency, both have their pros and cons. W cannot tell you “Buy it, you’ll be rich for sure” because there are many risks of cryptocurrency speculation. Do what your instincts tell you. There is no right way of crypto speculation.