Are you considering converting BTC to ETH but are unsure if the trade is risky? While it’s true that Bitcoin and Ethereum are standing proudly at the top of crypto rankings, does that mean giving up BTC to acquire ETC is a smart move? Our guide discusses details about the two coins and risks associated with the trade.
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Analyzing Bitcoin’s Tokenomics and Market Performance
Bitcoin is currently worth a bit over $37,000, and it’s the most valuable crypto by a significant margin. The project’s market cap is $725 billion, and that’s another category where BTC dominates.
Approximately 19.5 million BTC is currently in circulation. Halving events contribute to the coin’s scarcity, as well as the maximum supply limited to 21 million BTC.
Bitcoin has had a great year. It started at $16.672 in 2023, so it more than doubled its value. That’s still far from the all-time high, which occurred in 2021 and was $68,789.63. The latest trends have been positive, and BTC owners can only hope that they will continue in the coming years.
What Experts Say
If you consult expert predicting sites, you can see that Bitcoin is in for an exciting future. The majority agrees BTC will gain some value before 2023 ends, with some putting it at $40,000. Forecasts for 2024 are different, with multiple predictors claiming Bitcoin could reach $60,000. Some even state that BTC could break the all-time high in 2024. More cautious experts believe the coin’s value will remain around $40,000.
Even if it doesn’t happen in 2024, BTC should break the ATH in 2025. Some believe the coin’s worth could even go over $90,000. A few experts warn that Bitcoin might endure another crash in the next couple of years. While its long-term future won’t be compromised, that could lead to BTC losing at least 30% of its value at some point.
As for 2028, Bitcoin’s value could be at least $100,000. If the crypto market flourishes, that worth could go as high as $235,000.
Is Ethereum Lagging Behind?
Ethereum’s current worth is about $2,000, which puts it at the second spot in the crypto rankings. The market cap is $250 billion. While that’s lower than BTC, it’s still enough for ETH to be the most valuable altcoin in the industry.
The circulating supply is now around 120 billion ETH, and that will increase because there’s no maximum supply limit. Similar to Bitcoin, Ethereum has had a good year. It started in 2023 at a value of around $1,202, and its current value is a lot higher. ETH’s all-time high was $4,891.70 during the crypto boom in 2021.
What Experts Say
Predictors were quite accurate with the ETH estimations for 2023. They believe that the coin could increase to $2,300 before the year ends, but it’s unlikely to go beyond that. In 2024, Ethereum’s value might go beyond $3,000. Optimistic estimations say it could break the all-time high and reach $6,500.
In 2025, ETH could be worth at least $4,500, with more optimistic forecasts placing its value at $10,000. If we check the long-term forecast, Ethereum might be worth anywhere from $9,000 to $17,070 in 2028.
Main Risks Associated With The Exchange
Here are the main concerns to analyze before going ahead with the BTC to ETH trade:
- Positive forecasts exist for Bitcoin. Experts agree that BTC and ETH will both rise in the coming years. But a single Bitcoin is worth much more than one ETH, which makes keeping this coin worth considering.
- An “Ethereum killer” might disrupt this network. Many crypto projects aim to replace Ethereum at the top of the altcoin market. So far, none have succeeded, but what if that happens soon?
- Potential central governance for Ethereum. Large parties can hold a major portion of Ethereum — in 2022, 60% of the total stake was in the hands of four parties. That leads to worries about centralized governance, where a few investors could vote against certain changes or transactions.
There’s another risk worth mentioning even though it doesn’t have anything to do with the currencies themselves. It’s critical you pick a trustworthy exchange — that’s the only way to guarantee everything will go smoothly. You can even look for platforms with fixed rates to protect your assets against market fluctuations.
Conclusion
The first thing to clarify is that each crypto trade comes with some risk. But if you plan to trade Bitcoin for something else, Ethereum is likely the best choice. Many have tried to overthrow ETH from the leading position in the altcoin market, but none have succeeded. Ultimately, both Bitcoin and Ethereum will likely gain value in the coming years. Make sure to assess your portfolio, and if ETH seems like a good addition, don’t hesitate to go ahead with the trade.