• Wed. Jun 22nd, 2022

Bitcoin, Ethereum profitability for investors

ByHazel R. Lang

Jun 10, 2022

The battle for higher profitability between Bitcoin and Ethereum is a long-standing one. These two cryptocurrencies have the largest market share in the market and, by extension, have the most followers. Although they operate in the same space, the rivalry between them is unprecedented. It doesn’t stop at the networks themselves, but flows into the communities that support both assets, each claiming to be superior to the other.

Bitcoin versus Ethereum

The profitability of these two digital assets has been immense over the past few years. They have cemented their reputation as creators of millionaires since its inception. Nevertheless, it continues to be a competition for which is the best option when it comes to investing.

Related Reading | US macro pressure responsible for entire Bitcoin downtrend

Year over year, the newest and youngest Ethereum has proven to be the most profitable for investors, typically beating pioneering cryptocurrency Bitcoin by more than 2x on various occasions. This has attracted more investors and the speculations that Ethereum is the better choice.

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

This school of thought is also supported by data that shows investor profitability on both digital assets. Ethereum currently sees 54% of all holders in profit, surpassing that of Bitcoin holders. However, this is only by a small margin considering that 52% of BTC investors make a profit. This is also reflected in the loss territory where ETH and BTC investors in loss are 42% and 43% respectively. This puts the two cryptocurrencies on an equal footing.

Holding Through the Bear Market

Both digital assets have a reputation as good options to hold during the bear market. But where Bitcoin shines is its ability to better withstand bearish market trends. During the last bear market, the price of bitcoin was down just over 80% while Ethereum was down over 90%.

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

This is the case through the current bear market where bitcoin has once again proven to hold up better. Since the all-time high in November, BTC is down around 56%. However, the price of ETH has crashed over 63% over the same period.

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

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

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