Why investors are choosing Ethereum over Bitcoin

The report also noted that May is the first month in which investment volume from institutional investors into Ether has outpaced that of Bitcoin.

They are both decentralized tokens which means that they are not issued or regulated by a central bank or other authority and they both make use of the distributed ledger technology known as the blockchain.

Bitcoin has a maximum supply of 21 million units and investors see it as “Digital Gold,” but besides the functionality of facilitating cross-border payments, there isn’t much use case for Bitcoin.

The native cryptocurrency Ether is used mainly for two purposes; it is traded as a digital currency on exchanges in the same fashion as other cryptocurrencies and it is used on the Ethereum network to run applications.

While bitcoin was created as an alternative to national currencies and thus aspires to be a medium of exchange and a store of value, Ethereum was intended as a platform to facilitate immutable, programmatic contracts, and applications via its currency.

The recent actions of Tesla boss, Elon Musk who stopped Bitcoin as a means of payment for Tesla cars because of environmental concerns, has made Bitcoin less appealing to institutional investors.

It should come as no surprise that investors are finally seeing the light when it comes to actual use cases of cryptocurrencies.

Yes, that’s why ethereum is moving from prove of work to prove of stake, secondly, that’s the reason Ethereum is launching its first Hard Fork-ETHERLITE which will be in blockchain by July 1, 2021.

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