Let’s discuss the three reasons to Swap Your BTC for ETH today.
3 Convincing Arguments for Exchanging BTC for ETH
In 2021, Elon Musk tweeted that the insane energy usage of crypto networks was his reason for not accepting them at Tesla. The crypto market quickly crashed, and the ETH price plummeted by more than 50%. This was because investors knew that in the coming age of energy and environmental prudence, this energy consumption was unsustainable. However, that’s all about to change for the Ethereum network. ETH is undergoing game-changing upgrades that will cut its energy consumption by 99.95%. Here we’ll give an overview of what impact this may have on the ETH price, and if you should convert your BTC to ETH.
Crypto Market Situation 2022
There’s no doubt that 2022 has been a bad year for all cryptocurrencies. After a promising rally in July-August, prices are back down near their 2022 lows, with Bitcoin around $20k again. One of the major catalysts for this fall was the onset of inflation and central bank policy tightening around the world. This environment is bad for new technologies like crypto, which become starved of investment as funding become more expensive.
Will Market Go Bullish? Expert Thoughts
Despite the failure of a few crypto projects (e.g. Terra Luna), the technology underpinning cryptocurrencies is sound. Every year it’s getting closer to replacing traditional finance technologies. This means that the recent crypto crash is a function of the economic environment rather than the technology. So, the crypto market is likely to recover at some point. However, this resurgence is unlikely to come in 2022, as central banks are still creating a difficult investment environment. For reference, it took three years for the BTC and ETH prices to recover after the crash of 2018.
Here are some price predictions for Bitcoin and Ethereum for the next few years:
As you can see, prices are not expected to reach new all-time highs until 2025.
Also Read: Top 10 best Ethereum wallets | Detail Explanation
3 Reasons for BTC/ETH Exchange
So, if a bull run may come over the next few years, which token should you invest in? Here’s the case for Ethereum which explains the reasons to Swap Your BTC for ETH.
1. ETH Is Bullish Now
ETH has had a fantastic run in the second half of 2022, from under $1,000 in June to over $1,600 in September. This makes it one of the strongest investments for the time period, with a 60% return. However, most people were too scared to buy at this time. There is a reason Ethereum performed better than other cryptocurrencies like Bitcoin, and it’s linked to why Elon Musk ditched cryptocurrency in 2021.
2. ETH Will Release Its Merge Soon
ETH is undergoing a switch from using a Proof-of-Work consensus algorithm to Proof-of-Stake. This sounds like just a technical change, but it has enormous ramifications for the network. This one change will drop ETH’s energy usage by 99.95% and open up Ethereum to much greater efficiency. At this stage, Elon Musk may even get back onboard. The merge is currently underway in 2022. If all goes well, the new network will be fully functional by the end of the year, and the price will likely rally due to its success.
3. BTC Doesn’t Seem to Skyrocket This Year
The BTC network has no plans to change its Proof-of-Work mechanism and probably never will. This is why it will struggle in the energy-expensive economic environment and environment-focused political environment we’re entering.
Energy has been the Achilles heel of Bitcoin and Ethereum for many years. It’s one of the main reasons BTC and ETH transactions can become so expensive, and why many eco-minded entrepreneurs like Elon Musk refuse to use them for payments. However, Ethereum is in the midst of solving its crypto energy problem once and for all. If the network merge is successful this year, the ETH price is likely to reap outsized rewards in the crypto market.
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