Are people moving their ETH into BTC because they view that as the safest crypto asset?

ETH has gained over 300% in value since the start of the year, an increase that outpaced both BTC and many other major cryptocurrencies.

Yet, during that period, ETH trading volume has dropped, suggesting that many ETH holders are moving their assets into BTC to get a better return on investment (ROI).

Are people moving their ETH into BTC because they view that as the safest crypto asset? Is there another reason behind this trend? We investigate here.

 

What is the intention behind this blog?

What is the intention behind my writing a post on whether or not it makes sense to move your Ethereum (ETH) over to Bitcoin (BTC)?

I wanted to answer two questions.

 
1) Is it worth it to spend time and money converting your Ethereum into Bitcoin

2) Why do you think people are doing so in droves right now?

By answering these questions, we may be able to determine if there is currently a sentiment shift. If a sentiment shift does indeed exist, then we may potentially have information about what’s driving said sentiment shift.

Lastly, by researching what factors may be causing or leading investors to make such a big decision, we might be able to gain insight into why prices are surging right now—or even if they will continue growing.

 

Will Bitcoin ever see $5,000 again

It’s been nearly five months since Bitcoin last saw its value at $5,000 and some investors are starting to wonder if we will ever see those figures again. After a rocky start to 2018, it has been unclear whether or not there is any significant reason for optimism.

This past weekend, however, was one of Bitcoin’s best in recent memory and bodes well for its price going forward. While we may never see $5k again in its current form, there are plenty of reasons to believe in both a long-term bull run and continued recovery over the coming weeks and months.

 

Technical analysis and market sentiment

How safe is your investment? by Jackson Weil The entire cryptocurrency world has been turned upside down. With all of these new ICOs being introduced, we are seeing a few get traction and then immediately get hit with a hacking attack.

If you’re looking for a safer way to invest in cryptocurrencies, I suggest that you check out SELFLLERY. This is an easy-to-use platform that enables users to monetize from photo content while promoting brands and communities via likes, comments, and other interactions.

I believe it’s one of the first opportunities available where participants have an opportunity to actually make money doing what they love – sharing photos!

 

Cryptocurrency investors

Interested in getting exposure to bitcoin and other cryptocurrencies, but don’t want to take on riskier investments like individual stocks or options? Some investors have turned to cryptocurrency investment trusts (CITs), which are similar to exchange-traded funds (ETFs) and index funds.

They also function like pooled funds, in that many investors contribute money for a professional portfolio manager to invest on their behalf.

This way, if one investor wants out of a certain cryptocurrency—let’s say you bought $1,000 worth of bitcoin when it was trading at $10 per coin—you can sell just $250 worth without affecting its value. And CIT prices are generally lower than if you were buying shares of an ETF directly.

 

All cryptocurrencies are not created equal

It’s important to understand where a cryptocurrency is accepted and what its community is like before deciding to put your money in it. This is especially true for businesses—looking at specific projects can help you understand how a new coin might fit into your company’s overall strategy.

When you start looking at cryptocurrencies, there are several factors to consider. Below, we’ve listed some of them in comparison between Bitcoin and Ethereum.

Here’s how both stack up At first glance, one could argue that Ethereum appears safer than Bitcoin simply based on market capitalization alone (i.e., $69 billion versus $171 billion).

However, when considering other factors such as acceptance and regulation, investors may be less inclined to jump into an investment opportunity just because of sheer market size.

And when comparing those same two coins through another lens (i.e., developer activity), Ether has surpassed Bitcoin by far with more than 1 million lines of code versus 250,000 for Bitcoin (as stated by CoinDesk). With so many developers working on a single platform, things are bound to go smoothly...or not!

 

There isn’t enough attention on altcoins that have much higher potential than Bitcoin or Ethereum

This is an interesting concept, but it seems plausible. If you want to play it safe, investing in a currency like Ethereum, Ripple or Litecoin is your best bet. Of course, that doesn’t mean those are safe investments—they all have volatility (for better or worse).

They also may not be safe from regulations down the road. However, if you want something less risky with higher potential for growth and you’re interested in purchasing cryptocurrency other than Bitcoin or Ethereum, I’d recommend looking at some of these altcoins: Stellar Lumens (XLM), NEO (NEO), Nano (NANO) and Qtum (QTUM).

All four have a relatively low market cap and could potentially see explosive growth in 2018. It’s also worth noting that, though we're talking about cryptocurrency here, blockchain technology has many applications outside of cryptocurrencies; for example, it can be used to store medical records securely. We'll talk more about blockchain technology later on.

 

Conclusion

No. There is not enough data yet to say whether or not we are seeing a flight to safety effect with ETH, but for now, we think it's best to assume that all cryptos are still at risk and could see further declines.

That said, there will always be a place for non-sovereign digital assets like Bitcoin and Ethereum, regardless of how things turn out in Venezuela or Turkey; even if those economies improve, chances are another one will come along to take its place on investors' worry list.

Bitcoin has a lot of potentials (though it's far from realizing it), but unlike national currencies, non-sovereign assets can be subject to inflationary forces depending on supply and demand.