Bitcoin is a highly coveted digital asset for many investors. However, a significant number of them tend to abandon the token when its price drops.
However, there are also Bitcoin bulls in the market who maintain their faith in the asset regardless of its price movements. Microstrategy, led by Michael Saylor, is a prime example of a Bitcoin uptrend in the industry.
Over the years, the company has racked up a significant amount of Bitcoin, with Microstrategy currently holding 140,000 BTC on its balance sheet. This substantial investment has positioned MicroStrategy as one of the major public companies holding Bitcoin. However, despite this substantial investment, the company is currently losing 14%. This is because a total investment of $4.20 billion is now valued at $3.614 billion.
Now, if MicroStrategy chose to invest in Ethereum [ETH] instead of Bitcoin (BTC), the situation would be different. According to data from Blockchain Center.Net, the company will have a significant growth of more than 52%. In this case, if they had bought ETH, their current value would be $6.406 billion.
This also presents a challenge to Saylor’s belief that “There is no second best.” Previously, he expressed the view that Ethereum still needs to prove its technical and ethical stability. According to him, it should be observed for a period of 5 to 10 years before it can be considered a reliable asset.
Bitcoin and Ethereum
Over the past year, Bitcoin has dropped 6.2% in value, while Ethereum has seen a 19.2% gain. However, despite this performance difference, the Bitcoin network continues to maintain a higher number of active addresses and transactions.
According to data provided by Messari , daily active addresses on the Ethereum network amount to 722,849. Bitcoin’s address stands at 943,047. In terms of transaction volume, Bitcoin processed transactions totaling $3.19 billion. The Ethereum network processed transactions totaling $1.54 billion.
The difference in performance and market perception between Bitcoin and Ethereum can partly be attributed to regulatory concerns surrounding Ethereum. Brian Armstrong, CEO of Coinbase, discussed this in a recent interview, noting that the Securities and Exchange Commission [SEC] classifies almost all cryptocurrencies, except for Bitcoin, which are securities.
This regulatory classification has raised concern and uncertainty among market participants. This may have further influenced the market dynamics and perception of Ethereum versus Bitcoin.