Dogecoin – a cryptocurrency that was born as a joke – has a market cap of more than $ 66 billion. In addition to Bitcoin, Ether and Dogecoin, CoinGecko tracks more than 7,000 other cryptocurrencies. However, according to Bloomberg Most investors want to observe Bitcoin and Ether – the two largest cryptocurrencies in the world. Bitcoin is designed as an exchange currency without the need for any intermediaries. This is a new form of money, verified through encryption technology in peer-to-peer (P2P) systems. The ledger (blockchain) records all Bitcoin purchases. Bitcoin is a store worth more than $ 1 trillion. However, it does not contain any buildings, executives, lawyers, political structures or employment organizations. Bitcoin also does not need an accounting even if it is a digital ledger. Bitcoin and Ether are the two most popular cryptocurrencies in the world. Photo: Reuters. Digital gold Bitcoin token does central work, security, and upgrades for new innovations. Mid-sized computer companies that manage machines carry out transactions. These are called “miners”, just like a digital mining company that mines digital gold. Because there are no intermediaries, Bitcoin can efficiently, inexpensively and unpolitically solve the problem of long-distance value transfers. So far, the Bitcoin system proves to be one of the most versatile technologies we have ever had. Bitcoin has little or no value when it was first activated in January 2009. By April 2021, Bitcoin’s price hit a record of nearly $ 65,000. And Ethereum was developed by Vitalik Buterin – a Russian Canadian teenager – in 2013. Initially, Buterin loved Bitcoin but quickly became dissatisfied with its limits. Buterin is determined to start building a system that can do more. His vision is to create a blockchain that stores smart contracts – executing specific tasks in case certain conditions are met. In other words, the only limit to transactions running on Ethereum is the imagination of the developers. Bitcoin’s price has risen almost 100% since the beginning of 2021, while the price of Ether has climbed nearly 400%. The question is what Ethereum borrowed from Bitcoin. It’s the idea behind a decentralized network that records purchases. Both systems are public and are built on open source software. Both also have miners. They perform complex calculations used to verify transactions and receive new types of digital currencies. The system also received criticism for its high energy consumption. One estimate shows that the Bitcoin network used more electricity than Sweden within a year. Bitcoin has been referred to as a form of “digital gold”. Of course, this cryptocurrency is highly volatile and has seen bubbles crash many times. However, some investors hold Bitcoin as a hedge against inflation due to the limited supply. Bitcoin price is also unaffected by other assets. Therefore, many investors use them to diversify their portfolios. Investors often view Ether as a type of growth investment. They bet on the development of a decentralized ecosystem built on top of Ethereum Phil Bonello Ethereum is also going through a development process. But the first boom happened in 2017 with a series of ICOs (first cryptocurrency releases). Many cryptocurrencies were born, used to exchange Ether and most used the Ethereum blockchain. Ether price then hit a record of 1,200 USD / dong. The second boom comes in 2020 as decentralized finance (DeFi) projects thrive. These startups pay interest on Bitcoin or Ether deposits, mortgage lending or cryptocurrency swaps on decentralized exchanges. The Ethereum network is therefore used for financial management, lending and mortgages. All without banks and brokers. Along with that is the hot development of irreplaceable tokens (NFT), a kind of virtual item that is authenticated by blockchain technology, with the digital signature of the owner. NFT is an indivisible, intact asset stored on the blockchain platform through a smart contract, non-destructive, verifiable, and has no second copy. The work has a name Ev erydays: The First 5000 Days Crypto artist Beeple’s was sold for $ 69.4 million at an auction by Christie’s. Threats of Bitcoin’s monopoly position The prices of Bitcoin and Ether have not fluctuated much between 2018 and 2020, also known as the “crypto winter”. But both benefit when governments pump money heavily into the economy to deal with the effects of the Covid-19 epidemic. MicroStrategy Inc. – a software and consulting firm – and billionaire Elon Musk’s electric car company Tesla has invested in Bitcoin. Wall Street and many other financial institutions are also starting to accept Bitcoin. Morgan Stanley and PMorgan Chase & Co. All open digital tracking channels for customers. Meanwhile, the price of Ether is driven by the activities going on on the world’s most popular blockchain. The company has undergone several upgrades to improve its network. The change is also likely to reduce supply. That will drive up the price by increasing the attraction and limiting the amount of Ether available. “Investors often see Ether as a type of growth investment. They bet on the development of a decentralized ecosystem built on top of Ethereum,” said Phil Bonello, Research Director at Grayscale Investments. , comment. Ether price peaked at more than 4,200 USD / dong on May 10. Photo: Coin Desk. The Ethereum network is used more than Bitcoin, and countless developers are still working on. Bitcoin currently accounts for about 46% of the total cryptocurrency market value, down from 70% earlier this year. The rate of Ether is 15%. However, extreme legal or tax risks could threaten the growth of Bitcoin and Ether in a number of countries. Along with that is the risk of fraud or investors forget the digital financial code. Some observers consider the cryptocurrency boom a bubble. Large institutions – often referred to as “whales”, which hold huge volumes of cryptocurrency – can also adjust prices at will. Even crypto proponents argue that the sector is very volatile. However, Bitcoin and Ether have recovered from a downtrend over the years and are increasingly adopted as a mainstream financial asset.

Bitcoin and Ethereum are the two largest cryptocurrencies on the market today. Photo: Getty The days when Bitcoin was the only option for investors looking to get rich in the crypto market are now a thing of the past. Ether, the world’s second-largest digital currency, has just continued to set new records as interest in so-called altcoins continues to soar. Dogecoin, which was originally a joke, now has a market value of nearly $ 90 billion. For the majority of people, the 2 biggest cryptocurrencies still receive the greatest interest. Both Bitcoin and Ether had a great start in 2021, Bitcoin’s price doubled, Ether also more than quadrupled, compared with an 11% increase in the S&P 500 index. Where to invest in Ether Ether is the most commonly used token in the world, and Ethereum is also the currency that Microsoft Corp pays for in exclusive digital art (NFT) purchases and sales, which are causing the ‘ fever ‘in the market recently. Pat LaVecchia, CEO of trading platform Oasis Pro Markets, said, “Ether is a blockchain platform has the same role as the app stores of Apple and Android”. Whereas “Bitcoin is a commodity like gold, or is a store of value”. Unlike Bitcoin, where many features (eg supply) have been fixed since inception, the Ethereum platform is still evolving with updates that promise to help improve the system. It is even possible that regulations change and cause the supply to drop, which will drive Ether prices up. “Investors often see Ethereum as a growth investment, betting on a decentralized ecosystem that continues to evolve,” said Phil Bonello, research director at Grayscale Investments. Bitcoin investment case Although Bitcoin’s lead has weakened somewhat recently, Bitcoin now accounts for about 46% of the total crypto market cap, compared to almost 70% at the start of the year. However, according to crypto tracking firm CoinGecko, it remains the largest digital currency in the world with a market value of more than $ 1 trillion, compared with Ethereum’s $ 380 billion. Bitcoin is still the choice of big businesses. Tesla and MicroStrategy buys Bitcoin, not Ether. When Paul Tudor Jones or Ray Dalio talk about cryptocurrencies, they just talk about Bitcoin. Cornerstone Macro analysts have studied how Bitcoin and Ether prices played during a plunge. They found that when the Bloomberg Galaxy Crypto Index fell 20%, the downside risk for Ether was greater than for Bitcoin and vice versa. If you want to invest in both Anyone who wants to enter the crypto market needs to get used to the huge fluctuations of prices, even for the oldest and largest coins. In addition, this market has countless other risks such as the exchange can be hacked, the management suddenly tightens the management of this currency … Most mainstream financial advisers say that they do not encourage investors to put more than 5% of their portfolio in cryptocurrencies and also warn clients that they need to prepare themselves for the loss. . However, for those looking to get into the crypto space, old advice like diversifying your portfolios and hedging is always true. “Due to diversification opportunities among digital currencies, we should consider investing a small amount of them, rather than just Bitcoin alone,” advises Cornerstone analysts.