Finance

Should You Exchange Your BTC to ETH in 2022?

In 2022, Bitcoin remains the uncontested leader in the crypto market. The original cryptocurrency is still spearheading the entire ecosystem, and altcoins continue to follow its direction, whether up or down. Some altcoins like Ravencoin have even copied its protocol to the letter, attempting to become a more democratic version of BTC. Investors always look for the best Ravencoin wallet to store these similar but much less valuable coins. 

However, Ethereum stands strong in second place by market cap and is becoming increasingly adopted by mainstream and institutional investors. In this article, we analyze BTC and ETH and try to assess whether exchanging BTC for Ethereum is a wise choice going forward. 

Overview of BTC

Created in 2008 by the mysterious Satoshi Nakamoto, Bitcoin’s goal was to become a new sort of money, independent of all government interference. Over the years, not only did it succeed at this but set up a new paradigm and provided completely new insight into the value of money. 

Today, many consider Bitcoin as one of the soundest forms of store-of-value, providing investors with increasing profit over time. It helps individuals to fight the reduced purchasing power of the dollar.  

BTC: Predictions for the Future

Bitcoin started its journey in the market as low as $0.3 and has been steadily growing in value ever since, with lots of ups and downs in between. 

This cryptocurrency went through multiple bullish and bearish cycles, of which three are the most noteworthy: 

  • In 2013, Bitcoin went from $70 to $1,150.
  • In 2017, the price skyrocketed from $800 to $20,000.
  • And recently throughout 2020 and 2021, Bitcoin went from $8,000 to $69,000.

While in between, the price had decreased quite considerably, in the long term, Bitcoin’s value has provided great ROI for investors. 

Considering these findings, let’s have a look at some BTC price predictions from reputable sources. 

Digitalcoinprice.com has a bullish view on Bitcoin. From its current price of around $30,000, the website predicts a target of $41,936 for 2022 and $68,822 for 2025. 

Priceprediction.net is a lot more enthusiastic about its future, with a target of $41,000 for 2022, and $137,071 for 2025. 

Overview of ETH

Ethereum came about in 2014 as the first functional smart contract blockchain that provided a platform for deploying decentralized applications. More than 90% of the decentralized finance ecosystem entirely relies on Ethereum’s network. As this niche grows, so does the value of ETH. 

What’s more, a huge change is coming to the Ethereum network in 2022. The protocol will switch from a proof-of-work consensus to a much more sustainable proof-of-stake mechanism. This should allow Ethereum to become more scalable and be able to meet the demand for mass usage. 

ETH: Predictions for the Future

Ethereum is currently trading around the $2,000 mark, with a market cap of $243,672,029,407. Considering that at release it was worth $0.31 per coin, its value has increased by 650,000% at the moment of writing. 

ETH has gone through two major bull runs: 

  • In 2017, it reached a high of $1,400 per coin.
  • In 2021, it reached an all-time high of $4,800.

Considering its increased adoption, analysts on the internet provide us with some bullish price predictions for the following years. 

Digitalcoinprice.com sets a target price of $2,837. For 2025, they expect it to rise to $4,348. 

Priceprediction.net has a similar view for 2022, with a price of $2,898 per coin. For 2025, they forecast a price of $8,984 per coin. 

Why Should You Consider Trading BTC to ETH?

So, should you trade BTC to ETH and take advantage of the current BTC to ETH exchange rate? There are some well-grounded reasons: 

  • Bitcoin’s potential for growth is diminishing as the market becomes more liquid and less volatile.
  • Bitcoin’s PoW consensus is considered environmentally wasteful.
  • Ethereum will become much more scalable in 2022.
  • Ethereum provides increased utility compared to Bitcoin.
  • ETH might skyrocket in value once it switches to a PoS model.
  • Institutional investors become increasingly interested in Ethereum’s network.
  • Ethereum has the largest dev community in the blockchain landscape.
  • Most of the DeFi ecosystem depends on Ethereum and uses its ERC-20 token for yields, lending, and collateral.

All in all, while Bitcoin is largely considered sound money, Ethereum has even more upside potential in the coming years.

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