Which One Is Better in 2022: Bitcoin or Ethereum?

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CRYPTO V

Hey welcome back everybody to altcoin daily my name's austin cryptocurrency is in a bear market based on the macroeconomic landscape as well as the hawkish rate hikes from the fed this is a risk off environment so i would.

suspect that prices in 2022 would

 probably go lower now i am not a financial advisor nor can i see the future so you do your own research make your own decisions and that's also not to say that we won't see a bounce sometime soon as we

've discussed in prior artecle bitcoin is making history right now to the downside.

with one two three four five six seven

 eight nine weeks to the downside so eventually somewhere sometime we'll see a bounce but in this time of crypto market uncertainty in today's video like always i want to have a very real discussion of either bitcoin or ethereum which is best we are going to look at a series of charts some for bitcoin some for ethereum as well as a few other pieces.

of on-chain data so we have all the information

 so i can make the best decision for me so like always check the timestamps down below smash that like button if you want to support me support this content and let's jump in starting with first off why bitcoin in a bear market why is bitcoin the safest play safe airplay compared to the altcoins well it has everything to do with risk.

tolerance as well as bitcoin dominance and when

 i say risk toleranc a lot of these altcoins obviously are riskier they're more speculative while bitcoin's a complete project it's a store of value slash means a payment the altcoins are based a lot more on hope and what could be in the future after upgrades after adoption well bitcoin works great as is now at least the best out of all the cryptos also it has the.

most users the most liquidity

 also it's been around the longest which does make it a safer play to investors especially in risk-off environments and we can see this we can prove this every cycle we see this with bitcoin dominance altcoins do better in bull markets while bitcoin does better in bear markets via the dominance so this is a chart of btc dominance on the weekly scale going about from 2016.

all the way to where we are today in 2022 and just looking at history.

 we can see back in 2016 there was the bull run from 2016 ending at the very end of 2018 so btc went from about 95 dominance all the way over the next two years in the bull market to just 35 dominance so in a bull market altcoins outperformed then what happened through the 2018 to 2020 bear market well in the bear market.

obviously btc dominance grew going from just 35 percent.

 at the end of 2017 all the way up to over 70 percent at the beginning and even at the end of 2020 then the bull market happened sent btc dominance all the way back down to 39 yes 39 and that's how the bull market peaked and by the way even though altcoins right now are already down 40 50 some up to 70 percent down already btc dominance has just started the trend.

change and usually the trend is you friend.

 now will it get back up to wha it hit last cycle no i don't believe so we are seeing diminishing returns in btc dominance as well one because we're getting way more altcoins in the crypto market than years ago but also better quality altcoins that are sticking around longer so while bitcoin is king bitcoin dominance will continue to increase i believe we may.

not get all the way back to the peaks.

 we saw last cycle nyway towards the end of this artecle  i want to come back to this i want to zoom in and talk specifically on where we are now but generally speaking this is why bitcoin this is the reason people prefer bitcoin in bear markets okay next up let's talk about ethereum number two eath dominance currently at seventeen point one percent so clearly a big part of the market and for those of you who've been following eth is going.

up in dominance against altcoins but.

 it is losing value to bitcoin so while it is a big contender in terms of dominance it is still it still does not compare to bitcoin but let's get specific because something that's new this cycle that has not been a part of other cycles in the past is the amount of daps and use cases an activity on the ethereum network not to mention the merge eth 2.0 the upgrade happening this year so first up let's look at the data and by the way all this data all these.

 respected in the space so first up let'

s talk about activity meaning what ethereum applications have the highest demand to find out we followed where users spent the most gas was it in defy applications nfts erc20s etc well this chart was very revealing over time ethereum has been many things and we can clearly see these trends emerge within gas consumption dominance so notable ethereum usage dominance today is surprisingly 30 percent nfts that's.

what's leading the activity on the eth network number.

 two 13 d5 then 8 just means of payment eth transfers 5 stable coins and 5 bridges here is that chart in color and the two biggest consumers or usage on each is orange nfts and green d5 this was different than last bear market where by the way d5 and nfts weren't really even in the conversation it was all erc20 tokens this darker green it was the ico erc20 boomthen we had a d5 summer of 2020 bitcoin .

really rallied here in 2020 and then in 2021 nfts.

 clearly seeped into the mainstream and at 30 they're clearly the dominant usage of ethereum today so now that we've looked at a lot of the data why bitcoin's valuable why ethereum is valuablelet's talk about what everybody needs to  do with their crypto right now and by the way obviously i'm just speaking for me i can never tell you what to do with.

your money you have a totally.

 different situation this video or this channel is really just about my journey my brother's journey what we're doing in tis market so bitcoin or ethereum what's the better play i think it's bitcoin in bear markets you always want to choose bitcoin and you may think well austin if bitcoin runs these altcoins are gonna run too if bitcoin does well ethereum's probably.

gonna do well and i would say yes eventually.

 that happens but not always this is back to the btc dominance chart and if you remember back in 2020 after the pandemic crash bitcoin ran bitcoin did great in 2020 2021 as well as btc dominance dropping heavily in 2021 as altcoins ran but it didn't start out that way if you look at btc dominance towards the end of 2020 into 2021 as.

bitcoin's value was increasing bitcoin dominance.

 also increased as well we again went over 70 dominance so bitcoin ran for months without altcoins moving and yes if you were willing to wait long enough altcoins did awesome obviously but for several months before that btc was the best investment btc gained over all coins and maybe you're saying austin didn't you just show us the usage.

we've never seen this type of usage before on ethereum.

 didn't you just show us that and the answer is yes and i personally still have a big bag of ethereum but if you're asking me what's the better buy today i would still say bitcoin only because i don't think ethereums are going to get more popular in 2022 than they did in 2021 yes nft i mean sorry i don't think nfts are going to get more popular over the.

long term i think they will by 2023 maybe 2025 man they.

're only getting bigger but in this next year i don' think we're going to see the hype of 2021. i do expect stable coins to only get bigger more than 5 bridges is a growing trend also defy only getting bigger as well but in this risk off environment with all this experimentation i would think that risk eth would be seen as the more risky play.

for investors also yes the ethereum merge.

. is happening very soon we discussed what this means to you heavily about a month ago i will link this interview down below if you want to know what to expect with theethereum merge but again that is a major upgrade and i would suspect that would be seen you know it's an unknown it's a risk as well with such a major upgrade to the.

network at least in the short term.

 so i think in 2022 bitcoin is is the better play i don't know if we'll see bitcoin dominance get back to the peak to the peak of last cycle over 70 percent but i could easily see us getting back to the support of around 5 to 55 percent which we've seen so many times before now that's not to say that altcoins are dead altcoins are building right now the.

good projects are consolidating ..

and they will come up much stronger in the next bull market i would say and even if we do see a bounce and some of these coins start going back up in usd value i still think because of bitcoin dominance 2022 at least in these next few months is the time for bitcoin i think what do you think feel free to share your thoughts down below let's all check the comment section together right now.