If you had $500 to invest in either Bitcoin or Ethereum each month, what would you do?
Here's a hypothetical situation that I would like to pose to anyone that's interested in cryptos and answering this question. Let's say you have $500 to invest each month, but you have to choose to invest in either Bitcoin or Ethereum. You can split the investment up however you want each month, but once you invest your funds, you have to leave them there for at least three years. What investment strategy would you follow and why?
Here's my take on this.
Bitcoin
Pros
- Bitcoin was the first crypto to come into existence, therefore has higher name recognition than any of the other cryptos. This makes it reasonable to assume that it will experience an easier time generating more interest, trust and adoption from the mainstream than the other cryptos.
- Bitcoin has a massive amount of investment and infrastructure set up all around it with tons of people really wanting to make sure it succeeds in the long-term.
- Bitcoin is amazing technology created and nurtured by very intelligent people
- Bitcoin has already withstood the test of time in many ways, much more so than the other cryptos since it was created first, and has already faced many challenges and is still alive and well.
Cons
- There are problems with Bitcoin and it's not a foregone conclusion that all of these issues will be worked out in a good way. This adds an element of risk.
- One of the current issues with Bitcoin is around longer transaction times which might dissuade some businesses from adopting it, hindering its mainstream appeal.
- Since Bitcoin has been around the longest and has already jumped up massively in price, this can lead many people to believe that they've already 'missed the boat' and can lead them to look for alternative crypto investments that they can get into 'on the ground floor' which they believe might lead to higher overall returns in the long run.
Pros
- It solves a problem that Bitcoin couldn't (smart contracts).
- It can arguably be so much more than Bitcoin ever could. Some people compare Bitcoin to a website and Ethereum to the web itself.
- It's newer, the price is lower but has fairly recently skyrocketed and this could potentially appeal more to investors who felt like they missed the boat with Bitcoin.
- Many people believe that Ethereum's market cap might overtake Bitcoin's sooner rather than later.
Cons
- It's more centralized than Bitcoin and this could potentially pose some risks.
- It is still fairly unproven in that it has not yet really delivered all it promises to be and has not yet withstood the test of time.
Thoughts?
its so tough to know whats going to happen. bitcoins network is so bogged down something seriously will and needs to happen. Id say 90% eth and 10% bitcoin but honestly id pay close attention to the market and new coins.
or just buy steem and power that crap down! I mean up
Yes for sure. Bitcoin certainly cannot keep going along the way it is now and needs to be improved in order to continue to be viable as a currency. It's interesting that you're so bullish on eth. With it being so new and being such awesome tech, it certainly has so much room to grow. I've certainly been focusing on the new coins too, but that's such a crowded space now and I'm a bit leery of all the noise and the prospect of the 'pump and dump' schemes. I really want to do my research and understand what's out there before getting too invested in some of the newer stuff that's out there now.
Great post.. IMO, Ether is way under valued and has plenty of potential to reach Bitcoins current price within the next 2 years.
I'd say more on Ether than bitcoin for now. Have you taken a look at Litecoin? Up 764% in a year. Up from $3.78 - $48.04 since March. Happy Steemin!
Thank you! Yes, I agree with you on eth. Yes, Litecoin was the one I was actually the most interested in when I first got involved in this space in 2013. I'm not really surprised at what's going on with the price now what with Segwit, etc. and think it will continue to rise. It doesn't have some of those major issues that Bitcoin's dealing with now which I think it helping it.
I would invest in neither of them. They are too expensive and it is too hard to get a big piece of those expensive pies with little investment.
(look at my blog) I wrote today, I explained it
Interesting point and thanks for the heads up, I'll be sure to check out your blog. I agree it's a bit too late to take a strong position in either of them at this point (at least for me anyways with the cash I've got available to invest). I guess the question is how much will they both really rise in the future and if Bitcoin ever eventually goes on to be worth $5,000, $10,000, $100,000 or even $1,000,000 per coin as some people (even experts in the field) predict it could. If that happens, it will look like a real bargain now but it's hard to know at this point if that's realistic or not.
If you are just investing, split 500 in half and buy 250 of each coin every month, the best way the spread the risk. :) No more worries.
But also to to split the profits.
Yes, the hypothetical situation that I posed is actually similar to what I plan on doing in real life except instead of a 50/50 split, I plan on taking a portion of it to invest in some of the newer stuff (potentially ICOs, STEEM or simply newer coins that have recently hit the exchanges that look promising in my research).
Yes neither one of them are going anywhere and if they do then the whole cryptosphere is in a world of hurt. A lot of the problems that you mentioned about bitcoin won't hurt the investor at all and may actually be beneficial for them in terms of a hardfork, and then receiving the new BTC coin (whatever it maybe) and keeping their original one.
I'd be comfortable with a 50/50 split.
Interesting perspective, thanks for sharing. Which coins are you most interested in at this time?
Good post. Really appreciate you bring this to our attention. The coin market will be turbulent for the upcoming year(s) but I really believe in it. We do need more indept investment analysis. This is quite an interesting website I found: https://www.coincheckup.com Supposingly they researched every crypto coin in the scene based on: the team, the product, advisors, community, the business and the business model. They even score the coins stengths. See: https://www.coincheckup.com/coins/Bitcoin#analysis To see the: Bitcoin Investment research.
If ya'll want a strong investment plan visit https://bitpetite.com/?aff=kipparinga (bitpetite) Its a bittumbler that privatizes btc transactions using other currencies. You as an investor get paid dividends from fees they charge people to use their service.
You can invest your BTC, ETH, LTC and or XMR into bitpetite for either;
6 weeks - 4.5% daily and 1 % on weekends. Total return - 147% (47%, 100% being your original investment)
9 weeks - 3.6% daily 1% on weekends. Total return - 180% (80%, 100% being your original investment)
They recently updated their server to allow almost instantaneous withdrawals - you get paid hourly through dividends and can withdraw on demand. (within the minimum amount which is less than 5 dollars)
I would deem it low - medium risk as of now -
Good luck and happy investing :)
Maybe, maybe! In my opinion the fact that Coinbase alone gets almost 100 000 user per day at the moment is a good sign for bitcoin owners. I think that it would be a wise thing to invest at least something in bitcoin. You can have a nice $10 starting bonus at Coinbase with this link