Well-known cryptocurrency analyst Willie Wu compared the potential of two leading digital assets: bitcoin and ethereum.
Bitcoin is more suitable for long-term investment, as opposed to Ethereum, which is profitable when swing trading. This is the conclusion reached by the cryptanalyst Willie Wu.
The expert decided to compare the two leading cryptocurrencies in order to figure out which coin is suitable for long-term investments, and which one is best used for active trading. Wu used the on-chain data from the Bitcoin and Ethereum blockchains to analyze.
Cryptocurrency with potential
For example, Wu relied on the chart of movement of BTC and ETH realized price indicators for comparison. Recall that the realized price is the price of an asset at the time of its last movement across the blockchain.
In the chart above, you can see that the color bar (realized price) of the thicket Bitcoin is located below the actual market price than that of Ethereum. This may mean that most of the assets on the bitcoin network are stored for a long time and do not move to exchanges.
Thus, Bitcoin has outperformed Ethereum when comparing long-term investment performance. However, it remains to be seen whether the charts account for the lost coins.
Bitcoin takes too long to pay off
However, Bitcoin loses out to Ethereum in terms of the market value to actual ratio (MVRV) index. With it, you can determine how profitable a particular market is.
According to the chart, ethereum has the highest profitability (6.2x gain versus 4.4x bitcoin gain). For example, it took Bitcoin 13 months to reach 4.4x profitability. Ethereum was able to achieve 6.2x profitability in less than six months.
However, when recalculated to save prices when the market falls, bitcoin was more resilient than ethereum (29% loss vs. 75%).
