Bitcoin, Ethereum Profitability for Investors


The battle for higher profitability between Bitcoin and Ethereum has been going on for a long time. These two cryptocurrencies have the most market share in the market and by extension have the most supporters. Despite operating in the same space, the rivalry between them is unparalleled. It not only ends with the networks themselves, but also flows to the communities that support both assets as one claims to be superior to the other.

Bitcoin vs Ethereum

The profitability of both digital assets has been tremendous in recent years. They have cemented their reputation as millionaire makers since inception. Nevertheless, it remains a competition for which is the best option when it comes to investing.

Related literature | US Macro Pressures Responsible for Bitcoin’s Entire Downtrend

On an annual basis, the newer and younger Ethereum has proven to be the most profitable for investors, usually beating the pioneer cryptocurrency Bitcoin by more than 2x on several occasions. This has attracted more investors and the speculation that Ethereum is the better choice.

BTC drops to $29,000 | Source: BTCUSD on TradingView.com

This mindset is also supported by data showing investor profitability for both digital assets. Ethereum is currently seeing 54% of all holders make a profit, which surpasses that of Bitcoin holders. However, this is only by a small margin, as: 52% of BTC investors make a profit† This also shows up in the loss area where ETH and BTC investors in loss are 42% and 43% respectively. This places both cryptocurrencies on an almost equal footing.

Holding through Bear Market

Both digital assets have a reputation for being good options for weathering the bear market. But what Bitcoin shines through is its ability to hold up better during downward market trends. During the last bear market, the price of bitcoin had fallen just over 80%, while Ethereum had seen a drop of more than 90%.

Related literature | Bitcoin Open Interest Drops as Price Drops Below $31,000

This is the case due to the current bear market where bitcoin had once again proven to hold up better. Since its all-time high in November, BTC is down about 56%. However, the price of ETH has fallen by more than 63% over the same period.

One thing that remains constant in these two digital assets is the fact that longer-term holders are more likely to make a profit compared to those who choose to hold only for the short term. Wallets that have held their cryptocurrencies for more than a year are more likely to be in the green compared to wallets that are not.

Featured image from The Guardian Nigeria, chart from TradingView.com

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