You may already have heard about Bitcoin and Internet Computer, which may be on your list of possible investments. Though, the question,” is icp crypto a good investment?” may be a bit daunting to decide. So let us have a look at the details.
Trying to compare Bitcoin and Internet Computer is like trying to compare the old guard and the newcomers. One has been around for decades and is the clear market leader in cryptocurrencies, while the other just came out and hasn’t shown how useful it is yet.
Others, though, say that the big market debuts of Bitcoin and Internet Computer are similar because both were met with excitement and praise for their potential to change how we use technology. ICP’s sudden price rise is like Bitcoin’s meteoric price rise in 2013, when it suddenly became known as a way to make people into millionaires.
Most of the similarities end here, though. Whether you like it or not, Bitcoin is now the most important use of blockchain. It works as an exchange and payment system for tokens between people. On the other hand, developers can make apps, exchanges, new currencies, and even chat services in the Internet Computer’s fully decentralized environment.
Internet Computer could hurt a lot of businesses because it is basically the internet inside of the internet. Bitcoin, on the other hand, is still the most valuable and widely used cryptocurrency. Which is a better investment, computers connected to the Internet or Bitcoin?
In this comparison, we’ll look at each cryptocurrency’s technical features to figure out how good an investment it might be in the future.
The Main Differences Between Bitcoin and Computers on the Internet
From a technical point of view, it’s not really fair to compare Bitcoin to the Internet Computer. The second one has been around since 2009, while the first one is based on the latest developments in blockchain and cryptocurrency technology.
To get an idea of what the future might hold, both in terms of how long each project will last and how good it might be as an investment, it is important to know how the two are different.
Bitcoin: A Brief Overview
Bitcoin is a form of currency that doesn’t need to be explained. It came out in 2009, supposedly ushering in a new era of money and business and letting everyone know about blockchain. In his first whitepaper, Satoshi Nakamoto said that Bitcoin would be a fully decentralized peer-to-peer payment system that would take control away from banks and other financial institutions and make the financial sector more democratic.
Bitcoin has kept supporting the cryptocurrency movement and is by far the most well-known brand in the business, even though it hasn’t had the effect that was wanted. Bitcoin and other technological advances made it possible for cryptocurrencies to become one of the most widely used retail assets.
Temporary and Short-Lived
Since peer-to-peer payments were the original goal of bitcoin, the speed of its transactions makes sense as a deciding factor when comparing it to other coins. If you have invested in Bitcoin before, you know that BTC transactions are expensive and take a long time. This problem could make Bitcoin less useful as a currency for everyday transactions. Three to five transactions are done on the Bitcoin network every second. Visa can handle more than 1700 transactions per second, while Ethereum can handle up to 20.
Because of how blocks are made, Bitcoin transactions take a long time and use a lot of energy. You may have heard of this method, which is called “Bitcoin mining.” To put it simply, the proof of work method is used by computers in the Bitcoin network to solve hard equations. So, when a block is made correctly, more BTC enters the system because miners are paid in BTC for making sure each block’s transactions are correct.
The proof-of-work system was an engineering marvel when it first became popular, but it has since been criticized for being inefficient and bad for the environment.
Offer and Demand
No matter how good a cryptocurrency is or how far technology has come, its investment value is almost entirely determined by supply and demand. Because tokens are made out of nothing on a network, it’s clear that this question is especially important for cryptocurrencies.
Bitcoin has a built-in process that makes it hard to get BTC. As was said before, more Bitcoins become available when Bitcoin miners approve network blocks. Their pay, on the other hand, is usually cut in half. Since the reward was worth 50 BTC at first, it was cut to 25 BTC in 2013, then again in 2018 and May 2020, bringing it down to 6.23 BTC, which is its current value. It will be slashed in half again in 2024.
Also, there is a strict limit of 21 million BTC that can be made. Theoretically, this should cause prices to go down, which should be good for Bitcoin’s price if it continues to be popular in the cryptocurrency industry. Along with this, the number of network tokens that are given out will go down.
When it comes to demand, BTC is not likely to lose its position as the most valuable digital asset. Since the start of 2021, the number of BTC transactions has gone through the roof, and more wallets have been opened than in the previous 12 months.