As more and more digital tokens enter the cryptocurrency market, the evolution and the fight to the top continues. This has drastically pumped up the total cryptocurrency market capitalization in the past year, benefiting both investors and users. With the increase in interest, the demand for digital currency has also surged. Although digital tokens are often mocked for being extremely volatile and chaotic, people didn’t ignore them completely. To be precise, the instability and sudden price hikes in the crypto sphere have induced interest among short-term investors. Usually, all cryptocurrencies follow the pattern of bitcoin. As the first and most successful digital token, bitcoin is a decentralized cryptocurrency that became the face of digital investment. Bitcoin often shares its popularity with two other famous digital currencies namely ethereum and tether. Therefore, when bitcoin is slightly fading away from being investors’ first choice, ethereum vs tether is in a tough fight to be under the spotlight.
Although ethereum vs tether is on a competitive phase to place themselves first, both are slowly outpacing bitcoin. In general, bitcoin is considered the gold of the cryptocurrency sphere for its investment rate. However, that doesn’t make it convenient and user-friendly. When it comes to routine usage, ethereum steals the stage. On the other hand, tether contradicts bitcoin’s volatility. Since tether is a popular stablecoin, it stays on the radar as long-term investors’ top choice. Therefore, outpacing bitcoin and being at the top is the common goal where ethereum vs tether is headed to.
Ethereum for Frequent Transactions
As the first altcoin that emerged out of bitcoin, ethereum is the second most adopted cryptocurrency in the circle. Throughout its journey, ethereum has given tough competition to bitcoin and has maintained its ground level. Ether is hailed as a utility coin for its extraordinary features and advanced capabilities. It is the first programmable money on the internet, storing instructions on the blockchain that self-execute when certain conditions are met. Besides, ethereum also provides users with smart contracts that are recently in high demand.
Constant advancements and additional facilities to the existing features in ethereum make it adaptable and interesting for users. The most recent update on ethereum was the coming of ethereum 2.0. By the end of 2022, ethereum is planning to move from its current proof of stake (PoS) model to the upgraded proof of work (PoW), addressing environmental sustainability issues and volatility. The revision will ensure that ethereum doesn’t demand miners to use more power to solve algorithms, which will eventually help in validation and adding the transactions to the blockchain ledger.
Similar to bitcoin, ethereum is also entering a commercial adoption phase where big companies are willing to accept or use ether coins. For example, a Dutch multinational bank named ING Group uses ether to settle payments, bilateral lines of credit, and trading documents. Since big conglomerates like Tesla and Paytm already accent bitcoin, ethereum could be next in line.
Tether for Long Term Investments
Tether is the first stablecoin that gave hope to long-term investors who didn’t want to face the harsh wind of bitcoin’s volatility. Ranked as the fourth largest cryptocurrency with US$100 billion market capitalization, tether is backed by the US dollar. Although tether’s price is far lower than that of bitcoin and ethereum, it is admired for its stability and less volatility.
2020 was a long, profitable year for tether. According to a source, the total market value of tether has increased by 106.74% in 2020, outperforming all other top cryptocurrencies’ growth. Similar to ethereum, the tether is also seen as a trading currency that could go well with everyday usage. According to an analysis, nearly 97.0% of tether usage was directly distributed from the tether treasury to exchanges based on a 180-day average. In recent times, tethers are also issued on other public chains. Remarkably, many tether tokens already sit on the ethereum blockchain network.
Despite the assurance that tether provides, it is often questioned for the reliance on the US dollar. Recently, a group of vocal critics has raised their voice against tether and called it a possible risk to the cryptocurrency ecosystem. Fortunately, tether put out a statement to those allegations claiming that the most popular stablecoin is well stable.
In a Nutshell
Whether it is ethereum or tether, their main goal is to step on bitcoin and attract more investors who have been loyal to bitcoin for a long time. Therefore, people who use digital tokens as digital money for shopping, quick transactions, etc. choose ethereum as it has better options for routine usage. Investors who plan for a long-term investment with less volatility go for tether.
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