BTC - Bitcoin or Ethereum: Which Is the Better Buy?
While the crypto market is notoriously volatile, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have emerged as the two top options for crypto investors looking for relative safety. Bitcoin and Ethereum have the longest track records, a demonstrated ability to overcome down market cycles, and very deep liquidity. Together, these two coins account for nearly 60% of total crypto market capitalization.
And, as Coinbase Global (NASDAQ: COIN) points out in its new 2023 Crypto Market Outlook Report, the situation is likely to remain much the same next year. According to Coinbase, investors will continue to flock to Bitcoin and Ethereum in 2023 as part of a general flight to quality during a difficult macroeconomic period. If forced to choose, though, which one is better for your portfolio?
The primary allure of investing in Bitcoin , of course, is the potential for jaw-dropping long-term portfolio returns. Over the 10-year period from 2011 to 2021, Bitcoin was the single-best performing asset in the entire world, generating annualized returns of 230%. This eclipsed the returns of even risky, high-growth tech stocks by 10 times. While past returns are certainly no guarantee of future returns (this has been evident in 2022), this type of historical track record is certainly enticing. In two of those years, Bitcoin produced truly abysmal performance (down 58% in 2014 and 73% in 2018), so that gives me hope that Bitcoin will be able to overcome a dreadful 2022, in which it is down nearly 65%.
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Bitcoin or Ethereum: Which Is the Better Buy?