Bitcoin vs Ethereum: Will ETH outperform BTC in 2024?

Key Takeaways:

• The introduction of Bitcoin marked the advent of a revolutionary type of digital currency independent of government or corporate influence.
• Over time, the recognition grew that Bitcoin’s foundational innovation—the blockchain—had broader applications.
• Ethereum went beyond using blockchain solely for a decentralized payment system, suggesting its utilization for secure decentralized financial contracts and applications.

Ether (ETH), the inherent digital currency of the Ethereum network, stands as the second most widely embraced digital token, following Bitcoin (BTC). Given its position as the second-largest crypto by market capitalization, it’s inevitable for comparisons between ether and bitcoin to arise.

While both Ether and Bitcoin share certain similarities, such as digital currencies traded through online exchanges and stored in various crypto wallets, they also exhibit notable distinctions. Bitcoin is crafted as an alternative to traditional physical or fiat currencies, whereas Ethereum is specifically designed to facilitate intricate smart contracts and decentralized applications.

What is Bitcoin?

In January 2009, Bitcoin was launched based on a groundbreaking idea outlined in a white paper authored by the mysterious Satoshi Nakamoto. This concept presented Bitcoin as a digital currency devoid of central authority. Rather than physical coins, Bitcoin relies on balances associated with a cryptographically secured public ledger.

While Bitcoin wasn’t the initial attempt at creating such an online currency, it distinguished itself as the most well-known in its early endeavors. Consequently, it has earned recognition as the precursor to nearly all crypto that has surfaced in the past decade.

Over time, the notion of a virtual, decentralized currency has gained acceptance among regulators and governmental bodies. Bitcoin has established its niche and persists alongside the traditional financial system. It remains under consistent scrutiny and debate, yet it is notable.

With Bitcoin halving approaching next year, miners and BTC holders anticipate the market reaction to go bullish. Bitcoin halving is a predetermined event that occurs approximately every four years, reducing the rate at which new bitcoins are created by half. This process is encoded in the Bitcoin protocol to control its inflation and mimic the scarcity of precious metals like gold. The most recent halving took place in May 2020, lowering the reward for miners from 12.5 to 6.25 bitcoins per block. Halving events contribute to Bitcoin’s deflationary nature and often impact its price as the reduced supply can create upward pressure.

Read more: Bitcoin Halving 2024

Key features of Bitcoin

• Decentralized in nature means no central authority or government controls it.
• Transactions made with Bitcoin are recorded in a public ledger called the blockchain. The blockchain is a chain of blocks, each containing a list of transactions. This technology ensures transparency and immutability.
• The limited supply of 21 million bitcoin coins makes it a deflationary asset. This scarcity is built into the system’s code and designed to mimic the scarcity of precious metals like gold.
• Bitcoin is mined through powerful computers that solve complex mathematical problems to validate and add transactions to the blockchain.

Latest News Bitcoin

• In one of the biggest and the latest news in the crypto market – early in January 2024, spot Bitcoin ETFs were finally approved and 11 ETFs were launched on January 10, 2024. 
• Among the 11, some of the biggest names include, Blackrock’s iShares Bitcoin Trust (IBIT), ARK 21Shares Bitcoin ETF (ARKB), Invesco Galaxy Bitcoin ETF (BTCO), VanEck Bitcoin Trust (HODL), Grayscale Bitcoin Trust (GBTC) and several others.

Additional Read: Impact of Bitcoin ETFs Approval by the SEC

What is Ethereum?

Ethereum, the second-largest crypto, utilizes an open-source blockchain with its native currency, Ether (ETH). It serves as a platform for various crypto, enabling the execution of Decentralized Smart Contracts.

Founded by Vitalik Buterin in 2013, Ethereum secured funding through a public crowd sale in 2014. Undergoing multiple updates, including the recent Ethereum Shanghai upgrade in April 2023, Ethereum aims to be a global hub for decentralized applications (Dapps). It pioneered the term “smart contracts” and allows programmers worldwide to create censorship-resistant, fraud-free software.

Ethereum’s Merge transitioned the Ethereum blockchain from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism, to create a more energy-efficient ETH network with greater scalability capabilities. Beyond that, Ethereum is also working on various other projects like Ethereum ETFs and Ethereum Virtual Machine to better cater to the developers. 

Key features of Ethereum

• Ethereum introduced the concept of smart contracts, self-executing contracts with coded terms, enabling automated and trustless transactions without intermediaries.
• Ethereum is a global platform for decentralized applications, allowing developers to create and deploy applications without centralized control, fostering censorship resistance.
• The EVM enables the execution of smart contracts, providing a secure and isolated environment for decentralized application computation.
• Ethereum’s ERC-20 and ERC-721 standards allow the creation of fungible and non-fungible tokens, enabling a wide range of tokenized assets and applications, including crypto and unique digital assets.

Read More: How to Buy Ethereum (ETH) in India 2024

Bitcoin(BTC) vs Ethereum(ETH): What’s the Difference

MarketCap* and Circulation Supply** as of November 2023. Source: CoinMarketCap

Latest News Ethereum

• On March 13, 2024 – Ethereum implemented the Ethereum Dencun (Cancun Deneb) Upgrade on the mainnet, which is the next major step in the Ethereum 2.0 evolution.
• The Ethereum Dencun upgrade introduces “proto-danksharding,” a feature dedicated to reducing transaction costs on layer-2 networks built on top of Ethereum blockchain. 

BREAKING🔥: Dencun Upgrade is here.

Developers predict: Upgrade = Super low costs on layer-2 = Bye-bye gas fees! 🛠️💸 #Ethereum #DencunUpgrade #crypto pic.twitter.com/GgkMjDDICk

— Bitinning (@bitinning) March 13, 2024

Additional Read: Ethereum Shanghai Upgrade

BTC vs ETH – Technical Analysis

BTC vs ETH | Source: TradingView

All through 2023 and even in 2024 so far – in the contest between Bitcoin vs Ethereum – both have been pretty much head-to-head in terms of price gains. Bitcoin, the biggest crypto by market cap and popularity has been successful in edging out its closest competitor and the largest smart contract platform by market cap. However, despite the slight edge, Ethereum’s price gains have not been poor in any way. In fact, both of these heavyweights have managed to outperform almost all of the other major altcoins in the crypto market. 

Bitcoin Price Prediction

In March 2024, Bitcoin Price (BTC) surged to create a new all-time high around $73,000, marking a near 74 % year-to-date increase so far. With a market cap surpassing $1.4 trillion and a dominance of over 52%, BTC remains the leading crypto. Technical analysis suggests a bullish trend, surpassing March 2024 resistance levels and aiming for the psychological barrier of $80,000 too amid the upcoming 2024 Bitcoin Halving sometime in April 2024.  

Additional Read: Bitcoin Price Prediction 

Ethereum Price Prediction

ETH/USD | Source: TradingView

In March 2024, Ethereum Price (ETH) surges with robust bullish momentum, climbing 4.5% in a week and 78% year-to-date, surpassing the crucial $4000 mark and currently trading around $4055. Fueled by Bitcoin’s momentum, Ethereum maintains a bullish stance, breaking trendline resistance and settling above $4000 with a golden crossover in EMAs. Technical analysis places ETH at its highest point in over 26 months, residing above the R2 Fibonacci level, establishing support near $3500. Price predictions for 2024 range from $4500 to $5000, with Ethereum’s adaptability and the upcoming Ethereum Dencun upgrade contributing to its optimistic outlook for continued growth. 

Additional Read: Ethereum Price Prediction

BTC vs ETH: Which is a Better Buy in 2024? 

In the perpetual debate of Bitcoin vs Ethereum, both cryptos emerge as attractive investment options, each with its unique value proposition. Bitcoin, introduced in 2009, pioneered the concept of decentralized digital currency and operates as a store of value, often compared to precious metals like gold. Ethereum, founded in 2013, extends beyond a mere digital currency, introducing the revolutionary concept of smart contracts and decentralized applications (DApps).

Bitcoin (BTC): The Trailblazer

Bitcoin, with its recent surge to a new all-time high of around $73,000 in March 2024, has demonstrated remarkable resilience and dominance, boasting a market cap exceeding $1.4 trillion and a dominance rate of over 52%. The upcoming Bitcoin halving in April 2024 adds an element of anticipation, a predetermined event that historically triggers bullish market reactions. Bitcoin’s decentralized nature, limited supply of 21 million coins, and its role as a deflationary asset contribute to its appeal.

Technical analysis for Bitcoin suggests a bullish trend, surpassing resistance levels and eyeing the psychological barrier of $80,000. The approval and launch of spot Bitcoin ETFs in January 2024 further legitimize Bitcoin’s presence in traditional financial markets, attracting institutional interest.

Ethereum (ETH): The Smart Contract Pioneer

Ethereum, the second-largest crypto, has surged with robust bullish momentum, climbing 4.5% in a week and 78% year-to-date, currently trading around $4055. Ethereum’s distinctiveness lies in its role as a global platform for decentralized applications, enabling the execution of smart contracts. The Ethereum Dencun upgrade, implemented on March 13, 2024, introduces features like “proto-danksharding,” aiming to reduce transaction costs on layer-2 networks.

Technical analysis positions Ethereum at its highest point in over 26 months, surpassing key resistance levels and establishing solid support near $3500. Price predictions for 2024 range from $4500 to $5000, reflecting optimism fueled by Ethereum’s adaptability and the recent upgrade.

A Diverse Crypto Portfolio

Both Bitcoin and Ethereum present compelling investment cases, and their coexistence in a diversified crypto portfolio can offer balanced exposure. Bitcoin, with its established store of value narrative and impending halving, appeals to those seeking a digital gold-like asset. Ethereum, on the other hand, provides a dynamic platform for decentralized applications and smart contracts, reflecting the evolving landscape of blockchain technology.

In the dynamic crypto market of 2024, investors may consider embracing both BTC and ETH, recognizing their distinct roles and potential for growth. The technical prowess of Bitcoin and the innovative capabilities of Ethereum can complement each other, offering a versatile and resilient foundation for long-term investment strategies.

Read more: How to buy Bitcoin in India

How to Invest in Bitcoin and Ethereum 

Investing in crypto is super simple, safe, and secured with the CoinDCX app. It doesn’t matter whether you want to buy Bitcoin or wish to trade Ethereum price today; we have got you covered. 

Here are the 4 simple steps to buy your first BTC or ETH with CoinDCX. 

1. Sign up on CoinDCX
2. Complete your KYC
3. Link your bank account and add funds
4. Buy Bitcoin (BTC) or Buy Ethereum (ETH) 

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