Why Ethereum is a Better Investment in 2022

As the crypto landscape evolves, Ethereum stands out as a promising investment opportunity. In 2022, it is more likely to outperform Bitcoin, driven by its growing utility, increasing developer interest, and its pivotal role in emerging cryptocurrency applications like NFTs, DeFi, and the metaverse.

Ethereum: A Dominant Player in the Crypto Space

Ethereum is one of the most prominent cryptocurrencies, with a vast ecosystem and a growing volume on exchanges such as Binance, Kraken, and Primexbt. Its value has the potential to rise significantly in the coming years, making it a worthwhile investment.

Currently, at around 0.03 ether, this translates to about $90. However, if Ethereum reaches 40,000 USD or even 2 million USD, the returns could be as high as 1,200 or 600,000 AUD, respectively. This substantial growth potential suggests a strong investment opportunity.

Key Reasons Ethereum Will Outperform Bitcoin in 2022

1. Greater Utility

Bitcoin's initial promise was to serve as a decentralized digital currency. While Bitcoin has gained significant adoption as an investment tool, its utility as a currency remains limited. Currently, only about 15,000 businesses worldwide accept Bitcoin, which is just 1 in every 10,000 of the total number of businesses.

Ethereum, on the other hand, excels in applications that go beyond digital currencies, including the metaverse, NFTs, and real-world transactions. Ethereum's blockchain supports smart contracts, which are crucial for automating and securing transactions without intermediaries. This makes Ethereum more versatile and valuable in various industries, such as real estate, concert ticketing, and verifying ownership of digital assets.

2. Attraction of Developers

In the tech world, developer interest often signals future growth. Ethereum leads in developer support, with an average of almost 2,300 developers in Q3 2020, compared to less than 400 for Bitcoin. Moreover, more than 300 new developers are joining Ethereum each month.

With a robust developer base, Ethereum can adapt more quickly to new use cases. Currently, the Eth2 upgrade is underway, making Ethereum more sustainable, secure, and scalable to support thousands of transactions per second. Ethereum's lead in developers gives it a significant advantage over Bitcoin in terms of upgrading and advancing its infrastructure.

3. Future Outlook for Cryptocurrency

Throughout 2021, NFTs, Decentralized Autonomous Organizations (DAOs), and Decentralized Finance (DeFi) saw considerable growth, all favoring Ethereum. Examples include the virtual world Decentraland, which has seen a huge boost in its user base, reaching 300,000 monthly active users.

While Bitcoin benefits from early adoption, name recognition, and a cult-like following, it seems less adaptable to new technologies. Ethereum, by comparison, is better positioned to support the growing demand for innovative blockchain applications.

As interest and adoption in these technologies continue to rise in 2022, Ethereum will likely benefit more. This makes it a promising investment that could outperform Bitcoin once again in 2022.

Conclusion

In conclusion, Ethereum's remarkable utility, developer ecosystem, and its pivotal role in emerging technologies position it to outperform Bitcoin in 2022. Whether you're a seasoned investor or a newcomer, Ethereum presents a compelling investment opportunity in the rapidly evolving crypto space.