Bitcoin may be considered the granddaddy of all cryptocurrencies, but slowly and steadily, Ethereum is becoming the fan favorite.
This was the focus of a Benzinga survey conducted during late spring of 2021. When asked which of these leading cryptos would be the outperformer for 2021, traders and investors overwhelmingly chose Ethereum.
Here, we’ll examine the reasons investors and traders are putting more of their faith into Ethereum. We will also highlight what led to the crypto crash in May 2021 to give more perspective about how these cryptos may remain under pressure.
Benzinga’s survey included responses from 100 people who were asked to comment on price predictions of both Ethereum and Bitcoin based on an over/under scale for current prices.
“An astounding 80.8% of our participants believe that Ethereum will outperform Bitcoin through the end of 2021.” – Benzinga
Benzinga staffers noted that respondents were also asked to comment on whether Bitcoin and Ethereum were overvalued, undervalued or priced appropriately. Most of the respondents believe Ethereum will end the year between $6,000 and $10,000. At the time of writing, its price was $2,713.86.
Only 20.5% of crypto investors believe that Ethereum will close the year below $4,000. Almost 12% of respondents were so optimistic about ETH that they said it will end the year above $10,000.
As for Bitcoin, respondents still appeared to be bullish. Most of them expect for its price to be above $55,000 by the end of the year. Only 12.8% of respondents believe the crypto will be below that price by the end of the year.
At the time of writing, Bitcoin’s price was $40,041.44. Ethereum’s price was $2,833.48.
Musk to the Rescue?
This survey was taken before the crypto crash in May 2021. Things had been moving full speed ahead for cryptos when two major monkey wrenches were thrown into the space. This led to hundreds of billions of dollars being shaved off of cryptos’ books.
Things took a turn for the worse when Tesla founder Elon Musk said the company would no longer accept Bitcoin as a form of payment because of environmental concerns related to mining. The situation was only aggravated by moves China made on the heels of Musk’s announcement.
Musk seems to be rethinking his stance on crypto mining. Following the May crash, he tweeted:
“Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.”
Chinese government officials still worry about the financial risks of the crypto space. To avoid these risks, they stepped up their efforts to crackdown on Bitcoin mining and trading. Interestingly, the latest moves were a first for one of the country’s State Council committees.
The selloff that followed was brutal. Coin Market Cap reported that more than $400 billion was shed from the space in just 24 hours.
Still Running Scared
There is no doubt that Bitcoin, 44 and altcoins have increasingly gained favor over the last few years. That’s largely because institutions are getting into the space.
Officials at Coupon Cabin, an online hub that facilitate cashback programs, have also noticed how more people are becoming more comfortable with cryptos. It used The Harris Poll to further understand how comfortable people are with cryptos. The Harris Poll is a market research and analytics company.
Shaken But Not Out
Benzinga’s survey respondents also gave some advice about Ethereum and Bitcoin trading. For example, most of them haven’t sold either of the cryptos. They didn’t care much for Bitcoin as an investment. However, roughly 25% of them were willing to buy Bitcoin at around $55,000.
One crypto player noted that Bitcoin is a value token with no clear roadmap. Kosala Hemachandra, the chief executive of MyEtherWallet, told Forbes that even with the price plunge, long-term development is unaffected and Ethereum is well on its way to market dominance over Bitcoin.
According to Forbes, Ethereum’s price has far outpaced Bitcoin’s price over the last 12 months. Forbes found that Ethereum had added roughly 1,000% to its price compared to 300% added to Bitcoin’s price.
META 1’s Gold Standard
One of the main characteristics of cryptos relates to volatility. While brutal crashes like the space saw in May 2021 are not very common, players know that at anything can push cryptos’ prices lower and it can happen when they least expect it.
To protect themselves from losses due to volatility, crypto players look for cryptos that are backed by gold.
This is where META 1 comes into play. It is a gold-backed appreciating stable coin that can never be sold for less than asset value. Specifically, the META 1 Coin is secured by a reserve that includes gold assets, as well a combination of other above-ground and in-ground assets. These resources are assigned to the digital coin using smart contracts.
The META 1 team didn’t stop there. It also created a trust that places gold assets in low-risk, high-yield trading platforms that have the potential to produce a monthly cash flow.
In summary, if you can stomach the volatility of the crypto space, be sure to look for cryptos that are backed by a trusted asset. As noted about META 1, gold is the way to go when it comes to dealing crypto volatility.