- ETH and BTC has two major differences noted by the Grayscale CEO
- BTC proponents concerns whether the asset can facilitate as a form of payments
- According to a recent report, cryptocurrencies are not appropriate for digital assets
ETH and BTC are the two leading crypto assets leading in terms of market cap, and popularity. Earlier this week, we noted the price of these cryptocurrencies. Generally, Ether prices tend to move in a tandem with BTC. However, both cryptocurrencies have their own purpose. Michael Sonnenshein, the CEO of Grayscale, has noted two major differences between both the assets. Sonenshein highlighted that urging investors in the crypto market requires understanding the use cases of cryptocurrencies in order to assess its viability as an investment asset.
ETH and BTC as digital form of money
Recently, in the Yahoo Finance’s All Markets Summit Plus, Sonnenshein underscored that things like Bitcoin are inherently built to be a digital currency or a store of value. On the other hand, he noted that Ethereum is meant to be more of a gas powered decentralized application (dApps). Indeed, for Ethereum, the list goes on and on.
The Grayscale CEO also observed that there are challenges for investors. Moreover, he added that there are now hundreds or thousands of digital currencies. Several investors in the crypto market need to know the underlying use case of these assets before investing. Indeed, the factor helps to decide what may make sense for them.
Bitcoin critics questions as a form of payment
In the cryptosphere we have observed that several critics of the leading cryptocurrency question its efficacy as a form of payments. On the other hand, many BTC proponents underscored that the asset can be used for transactions, and points to firms like Overstock and Starbucks that offer its users to pay in BTC.
Meanwhile, ETH comprises both as a second largest crypto asset in terms of market capitalization, and a blockchain that supports most of the popular Non-Fungible tokens. Sonnenshein cited that investors will pass up on the crypto opportunity entirely, regardless of the variation between ETH and BTC.
Cryptocurrencies aren’t appropriate for everyone
Sonnenshein believes that cryptocurrencies are not appropriate for every trader. It is significant to see that those who are willing to allocate to crypto are those that have a higher risk tolerance. Moreover, such investors should also have a higher risk tolerance and a longer time frame. Notably, the risk in the cryptosphere owes in part to an uncertain regulatory environment. Simultaneously, Janet Yellen, the Treasury Secretary, had urged last month that the nation should adopt digital assets pegged to the value of government issued fiat currency, or any commodity. Still, advocates in the cryptosphere remain intact, even if the nation imposes new regulation.