Should You Swap BTC for ETH in 2022?

Should You Swap BTC for ETH in 2022?

Is It Time to Lose Your BTC and Get ETH?

Bitcoin is considered “digital gold” — more than half of Earth’s population has heard about it at least once. Many crypto experts tend to recommend BTC as the primary investigation opportunity for beginners. Given all this, it is unsurprising that many rookie investors first buy BTC. 

However, when the bear market struck, the lion’s share noticed Ethereum looked more enjoyable than its older brother. But is it the right time to swap all your BTC to ETH

Bitcoin: Recent Developments

Since Bitcoin is an open-source project, no single team oversees the development. Therefore, updates in the code of BTC are a rarity.

Taproot was the latest Bitcoin upgrade and the first in the last five years. Thanks to it, transactions have become more confidential and efficient. It has also opened up the potential for smart contracts, a vital feature of the blockchain to eliminate intermediaries in the most complex transactions.

Unlike the previous Bitcoin update in 2017, which all miners did not support, Taproot was approved by many stakeholders. The update has added new digital signatures to confirm cryptocurrency transactions. 

Now, Bitcoin uses a new algorithm called the Schnorr signature. It makes transactions more private and also enhances the capabilities of multi-signature wallets. 

Individual Bitcoin wallets are no longer anonymous, but multi-signature transactions became indistinguishable from regular ones. In addition, the mechanism for implementing intelligent contracts has changed. They have also become cheaper and smaller in terms of blockchain space.

Ethereum: Recent Developments

On September 15, 2022, we witnessed the so-called “Merge” of Ethereum — the most significant update, which transferred ETH to an environmentally friendly Proof-of-Stake model.

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After the full transition to PoS, the network’s electricity consumption will be reduced by 99.95%. With greater decentralization, network security, and throughput will increase. In addition, the cost of ETH transactions will gradually decrease.

This is the first in a series of significant updates for Ethereum. Future steps will help scale the network to process significantly more transactions at a lower cost and reduce overall storage.

Comparing BTC and ETH

The supply of BTC is 21 million coins, of which 19 million have already been issued. So, now the emission of Bitcoin is 91.33%. 

Currently, the first crypto is trading at the $19,434 price point, which is 71% lower than its all-time high ($68,789).

What about Ethereum? Currently, we have 122,373,863 coins, all mined during the Proof-of-Work consensus algorithm. Now ETH mining is impossible; the only option is to stake it and get rewards.

The actual rate of Ethereum is $1,306, while the highest point the king altcoins have reached was $4,891. Thus, today’s price is 73% lower than the ATH.

Bitcoin (BTC) and Ethereum (ETH) are the best-known and widely used cryptocurrencies. While they share many similarities, each possesses distinct qualities that set them apart.

Bitcoin, often called digital gold, was the inaugural cryptocurrency and remains the largest by market capitalization. Conceived as a decentralized digital currency that operates via peer-to-peer network nodes, its primary function is as both an asset store and medium of exchange – with limited supply (21 million coins) and robust security features that make it attractive to investors and proponents of digital currencies alike.

Ethereum stands out as something beyond just another cryptocurrency; it is a decentralized platform that facilitates the execution and creation of smart contracts and decentralized applications (dApps). Ethereum introduced the concept of programmable blockchain, enabling developers to develop applications directly onto its blockchain. Ether (ETH), its native cryptocurrency, serves as its means of transaction facilitation and payment for computational services provided.

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As Bitcoin and Ethereum utilize blockchain technology, Ethereum’s programmability gives it more scope for innovation and development. This has resulted in establishing an ecosystem of DeFi applications, non-fungible tokens (NFTs), and other blockchain projects on its network.

Bitcoin has historically had less price volatility than Ethereum due to its established position and widespread adoption. Ethereum, on the other hand, has attracted more excellent investments due to its potential growth prospects powering decentralized apps and tokenization; as a result, its price fluctuation can be higher.

Bitcoin and Ethereum are both influential cryptocurrencies, yet each serves different functions. Bitcoin acts primarily as a digital currency and store of value. At the same time, Ethereum provides a platform for building decentralized applications and executing smart contracts. By understanding their individual features and use cases, investors and users can make better-informed decisions that suit their goals and needs.

Price Predictions

Overall, no sources think the crash of BTC or ETH is near. They firmly believe these are our top 2 coins for the coming decade.

Talking more precisely about their charts, Bitcoin is expected to reach $15,000 in 2023 (there is a good chance to convert BTC to LTC for that time) and $100k in the next bull run. WalletInvestor thinks this would be in 2025. Then, we’ll see $113k in 2030.

Turning back to Ethereum, the experts think we won’t see another low in 2023. The median price of an asset would be $1,500-$2,000. Then investors can expect 5X to their funds as the ETH price would hit $10k in 2025. By 2030, a growth of up to $20k is quite possible.

BTC to ETH: Is It a Good Idea?

Deliberating whether converting Bitcoin (BTC) to Ethereum (ETH) would be wise requires considering various considerations. BTC and ETH are popular cryptocurrencies with unique properties and purposes, so their conversion should only be undertaken after carefully evaluating various factors.

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BTC can be considered digital gold, while ETH is a programmable blockchain platform that facilitates decentralized applications and smart contracts. BTC may offer more value preservation as it has long been accepted. Still, ETH might present more significant growth potential if you want to participate in decentralized finance and blockchain innovation.

Decisions on cryptocurrency investments should reflect your goals, risk tolerance, and cryptocurrency market knowledge. Diversifying within your portfolio is advised as it reduces exposure to any single asset. Staying up-to-date on market trends, technological developments, and regulatory updates is also paramount when making investment decisions; consider consulting a financial advisor or conducting thorough research before trading cryptocurrencies.

However, while no specialists see Ethereum becoming the #1 crypto in the next few years, Vitalik’s plans for this project are pretty promising. Why not join this journey?