London, England, 4th Nov 2021, According to Michael Hirsch, a broker at FinancialCentre, bitcoin and other cryptos like Ethereum have been growing fast, with faster adoption than that of Bitcoin since 2019. The number of users in Distributed Finance (Defi) has increased threefold since the beginning of 2021, which is even more remarkable. This “risky” market has enticed many investors over the past few years, which is proved by the growing interest of many companies in this field.
The broker gives a final ranking of the top 3 cryptos:
- Ethereum (ETH)
- Cardano (ADA)
- Bitcoin (BTC)
The broker considers Ethereum the top-rated cryptocurrency for investments. He sees Ether, a blockchain-based network with a medium of exchange, as well as the cryptocurrency Ether (ETH), according to him. Ethereum is a strong rival due to its smart contract capabilities. Smart contracts are similar to paper contracts that will execute when all conditions are met but without the involvement of a middleman such as a bank.
Developers create a variety of products using the Ethereum network, including Decentralized Exchanges (DEXs), Security Tokens (which can replace paper stock certificates and other financial items), non-fungible tokens (NFTs) used for replacing art and other collectables, as well as the creation of new cryptocurrencies based on the ERC.
The Ethereum community has voted to move to a Proof of Stake (PoS) consensus mechanism with the ETH2.0 upgrade, according to the broker. PoS participants can now stake their ETH in order to earn additional passive income.
The following are the broker mentioned the main key points of Ethereum being the best call for investments:
- Ethererurm is the world’s most popular blockchain network for decentralized apps, with a market capitalization of roughly $5 billion.
- Ethereum is a popular platform for decentralized apps and the ERC-20 token standard, which allows digital assets to be traded on the Ethereum network.
- Ether is the only coin being spoken about that may surpass bitcoin in the near future, and all Apps, smart contracts, security tokens, NFTs, or other products require ETH to operate on the blockchain.
- Bitcoin presently necessitates the use of other Level 2 technologies such as the lightning network to run smart contracts. Even with its taproot improvement, Bitcoin will only allow for simple, smart contract execution, whereas Ethereum will remain the superior option for this purpose.
- The first version of the Ethereum blockchain was launched in 2015, and it has since become a popular alternative. It has proved its durability but is still evolving to be better with the ongoing ETH2.0 upgrade, which replaces the outdated PoS consensus mechanism and system of shards with a more efficient and faster PoS consensus mechanism and system of shards.
- Staking is a second source of income, in addition, to ETH transactions (approximately 8% per year).
- The use of EIP 1559 ETH will certainly result in deflation, raising the price of ETH even faster. In early February 2022, according to current gas prices of 61 GWEI, the ETH supply will reach 118.7METH and start to decrease.
Cardano is a third-generation cryptocurrency that launched in 2017, building on Bitcoin and Ethereum but more sustainable (ecologically friendly), scalable (faster), and more secure. Despite its lack of media attention, it is considered must-watch crypto by the broker.
He summarized the importance of Cardano as the best investment option in cryptocurrency in the below-mentioned points:
- When comparing energy use, Cardano has eliminated the disadvantage of Bitcoin:
- Cardano: 6-gigawatt hours.
- Bitcoin: 130 terawatt-hours (21x Cardano)
- Ethereum: 50 terawatt-hours (8x Cardano) -> before ETH2.0
- The Proof of Stake consensus mechanism is in use at the moment, and investors can stake their ADA.
- Another ETH founder Charles Hoskinson is part of Cardano
- At the launch of Daedalus 1.0, Cardano recorded a peak transaction rate of 257 transactions per second (TPS), compared to bitcoins 7 TPS.
- Cardano is already being used for Finance, Healthcare, and Agricultural projects
- The fixed supply of Cardano is 45 billion ADA, with some cryptos having no limit.
Bitcoin has been viewed as a safe haven, and it provides high TPS at the current lightning network stage. The ultimate upgrade Lightning Network 2.0 will provide 4 million transactions per second, compared to VISA’s 50 thousand, according to the broker.
BTC is a store of value with a limited supply of 21 million coins.
Transactions Fees (tx fee) and rewards (mining fees) will increase as BTC prices rise.
At the current lightning network stage, Bitcoin has low transaction fees and high scalability. It is also a technology with many future improvements to speed, privacy, and smart contracts.
Bitcoin’s security has never been broken since 2009, while ETH blockchain was hacked in 2016.
Bitcoin’s blockchain has never been hacked, while Ethereum’s was hacked in 2018
BTC serves as the original cryptocurrency, just like gold for a gold standard. It is likely that BTC will remain king of cryptos due to its 1st mover advantage and name recognition (35% of all cryptos), loyalty (transactions fees), and permanence.
At the current stage, Bitcoin is the best cryptocurrency for large transactions with low fees.
Therefore, according to the broker’s opinion, the investors can go for Ethereum more than bitcoin and Cardano in order to get maximum profit. Ethereum and Cardano are considered as the best call for investment because of their value rise in market cap ranking. Cardano is considered the third-generation cryptocurrency which offers a sustainable and scalable blockchain system.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Source: FinancialCentre’s Broker