Even the most seasoned and traditional investors can’t ignore the massive rise of popularity in cryptocurrencies over the past few years. Which bodes the question of what is the best cryptocurrency to invest in 2021.
That’s why today, I want to talk more about a topic we’ve covered before. And while I’m not saying I’m a psychic or anything like that, everything I covered in that video seems to be a sore spot for investors now.
Investors can’t stop talking about Bitcoin’s use of energy, and if it will remain the big dog on the crypto block.
I previously stated that Ethereum was going to eat Bitcoin’s lunch — i.e. its money flow. My thesis on this, in a nutshell, was that Bitcoin is no longer sustainable.
This line of thinking happened after a massive power outage in China’s Xinjiang region in April — the place where two-thirds (70%) of worldwide Bitcoin mining occurs.
This event caused a violent cryptocurrency crash that drove Bitcoin’s value down nearly 15%. And frankly, volatility hasn’t slowed down since.
With Bitcoin no longer being sustainable, it’s now at odds with the young traders that want to go into crypto for its sustainable benefits.
So I had to ask myself what the heck is going between Bitcoin and Ethereum… and which one is the best cryptocurrency to invest in 2021?
Bitcoin vs. Ethereum: The Best Cryptocurrency yo Invest in 2021
I did a little homework and found out that Ethereum uses a tenth of the energy power Bitcoin requires — with the ability to use even less in the future.
And then I looked at Bitcoin and saw its energy usage has only gone up exponentially.
Even Tesla Inc. (Nasdaq: TSLA) CEO Elon Musk sent out a tweet to let his loyal following know that he wasn’t supporting Bitcoin anymore. He said the company would no longer accept it as a form of payment for vehicles.
Tesla is the number one sustainable investment in the world. So he’s the driving force behind the Environmental, Social, and Governance (ESG) craze among investors — they apply these non-financial factors to their analysis to find risks and growth opportunities.
From an environmental and publicity standpoint, there’s no way Tesla could sit behind Bitcoin’s excessive use of energy.
But what’s even more interesting to me is the pairs trade that I’ve been tracking between the two cryptocurrencies, and how much Ethereum’s been growing while Bitcoin lags.
Then it hit me: This movement reminds me of two stocks I traded in a pairs trade back in the early 2000s.
If you remember the huge rivalry that happened between Yahoo and Google back in the day, then you know where I’m going with this…
Check out my short video below to learn more about the best cryptocurrency to invest in 2021. Be sure to share your thoughts in the comments section below.
And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.
P.S. Trading expert and Wall Street legend Chuck Hughes has been helping traders bank huge profits for a while now…
But now he wants to show investors something different… A new method that was able to turn $5,900 into $212,217 in just two years.
So how does Chuck want to spend his summer?
Teaching everyday traders how to use his Triple Threat strategy to dominate the market.
