Bitcoin vs Altcoin: Weighing Up Crypto Investment Options

In the world of crypto investing, Bitcoin and altcoins are often the primary comparison for investors.

Bitcoin, as the first cryptocurrency, has proven its resilience for more than a decade.

Meanwhile, altcoins offer various innovations and appealing profit potential.

But which is better for investment? A study by Swan, a Bitcoin financial services company, provides interesting insights on this matter.

Swan Study: Altcoins Experience Rapid Depreciation

According to information quoted from Beincrypto, the Swan study analyzed the performance of the top 300 altcoins over the past five years.

The results show that most altcoins have experienced significant depreciation in value compared to Bitcoin.

On average, altcoins lost 90% of their relative value to Bitcoin within 10–20 months after reaching their all-time high (ATH).

Some altcoins such as Terra (LUNA1), Ontology Gas (ONG), and Bitgert (BRISE) even experienced such declines in less than two months.

More established altcoins like Cardano (ADA) and XRP took about 36 months to see a 90% drop from their ATH.

Litecoin (LTC) experienced a similar decline in 69 months, while Monero (XMR) took six years to reach that level of depreciation.

This shows that even more stable altcoins remain vulnerable to long-term value depreciation.

The study highlights Bitcoin’s role as a more stable asset for capital preservation in a volatile crypto market.

With its large market capitalization, widespread adoption, and strong security, Bitcoin remains the benchmark in the crypto world.

Although it doesn’t offer as much innovation as altcoins, Bitcoin has proven its resilience against market volatility.

Choosing between Bitcoin and altcoins as an investment depends on each investor’s goals and risk tolerance.

Bitcoin offers long-term stability and durability, while altcoins present higher profit potential but with greater risk.

Investors are advised to conduct thorough research and consider portfolio diversification to maximize potential gains and minimize risks.