How Does Ethereum (ETH) Compare to Bitcoin (BTC)?

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Ethereum (ETH) has had it rough over the past couple of months. For a time it had seemingly decoupled from Bitcoin's (BTC) price action and flew to a high of 1400 USD before falling to sub 400 level. But just from price action alone, disregarding news and all of that, I believe that Ethereum (ETH) could be in for a recovery soon if it isn't starting already.

If you've been watching Ethereum's (ETH) chart over a large time frame you may have noticed ETH has approached its approximate "mean" or average price from the low and high. This has caused ETH to start bouncing rapidly off of a long-term key support area (around 350 USD). This isn't at all dissimilar from early BTC movements. ETH is in fact below its 200-day moving average, as much of the market is, which normally would signal lower movements ahead. For Bitcoin (BTC) I believe this is, in fact, the case. While Bitcoin (BTC) will continue to fall a bit lower, for Ethereum (ETH) this could signal the start of another break away from BTC.

Other Factors to Consider

Now, shifting away from the price action it's time to consider some other factors. Ethereum (ETH) has a very active development team seeking to constantly improve the project as well as multiple organizations dedicated to the experiment. For Bitcoin (BTC) this isn't so much the case, there are some satellite groups working on projects to improve BTC but the creator(s) are conspicuously absent. Satoshi's anonymity may be part of Bitcoin's allure but Vitalik's continued presence and outspokenness is far more reassuring. As a platform for development, ETH is much more friendly to its community and that is important.

There is a big key difference in their models that bears mentioning and that is the respective cryptocurrencies' basic economic models. Bitcoin (BTC) is a deflationary asset, more cannot be created, but it can be destroyed or lost effectively lowering the supply over time. While all Bitcoin's haven't been released and won't finish releasing until approximately 100 years from now, that is all that will ever exist. Ethereum (ETH) on the other hand is inflationary, more can be created to adjust for future developments.

What all of this leads me to believe is that in the short and medium-term Ethereum (ETH) will see another cycle up, as BTC continues down to explore lower prices. In the long-term outlook, ETH may ultimately remain below Bitcoin's price due to its inflationary nature. This could lead to BTC being seen as even more of a limited store of value and ETH, with it's faster transactions and inflationary nature, as a truer currency when adoption increases. For now, Bitcoin (BTC) remains the primary payment method for cryptocurrencies and is gaining traction as such in countries like South Asia and parts of Europe. 

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Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive Content

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