The choice between this or that cryptocurrency as an investment asset more often than not depends on what we believe a project represents.
For an investor, it boils down to whether the native currency on the platform will appreciate in value as the project grows or is adopted.
If you are looking to make an investment and has an idea of what you want, then taking the next step would only need one more consideration. Which asset gives you a better shot at making it investment-wise.
Ethereum (ETH) is the second most recognizable cryptocurrency, thanks to its recent successes and rank behind Bitcoin in the market capitalization. TRON (TRX) is an emerging platform, soon to launch its Mainnet and touted as a potential top contender in the market. Which one makes for a better investment?
Why TRON (TRX)
TRON is quickly becoming a cryptocurrency to watch. After all the ups and downs the coin has been through, one thing remains intact: the resolve by its founder and CEO Justin Sun to transform and decentralize the web.
Its value has suffered massive tanking before, though that could be attributed to the influx of new investors whose experimental approach made for more weak hands that came in on the back of quick gains made elsewhere.
Two aspects could make TRON a better investment: the potential of its Mainnet and the platform’s adept marketing strategies.
The Mainnet factor
The Mainnet gives TRON the chance to exploit the advantages its founder listed as making it better than Ethereum. It’s these advantages that could drive it towards mass adoption. Top of that will be the near-zero fees of 0.00001TRX per transaction.
Another one relates to its high scalability, potentially up to 10,000tps. These will be crucial in the attempts to take over the entertainment industry that’s core to TRON’s adoption. If it conquers the gaming industry, then expect TRX to become valuable over time.
Marketing puts TRON on the map
In April, TRON conducted a $30 million airdrop to the Ethereum community. What this gesture did was to expose TRX to more users, potentially increasing its chances once the mainnet launches. And then there’s the $2B Genesis reward pool and the TRON loan.
All these work towards pulling users and developers to the platform, building a community that will drive its efforts to gain mainstream adoption. There’s also an outside chance that TRON’s rise could attract one of the big tech companies (often thought to be Alibaba). Such a move would increase TRX demand, a precursor to price growth.
Ethereum has much more clout than TRON at the moment and is generally regarded as the crypto that has the potential to overtake Bitcoin in terms of market capitalization. Predictions have been made that put ETH beyond its all-time high by end of 2018.
According to Nigel Green, deVere Group CEO, “The price of Ethereum is predicted to increase significantly this year, and could hit $2,500 by the end of 2018 with a further increase by 2019 and 2020.”
Ethereum is still the go-to platform when it comes to ICOs and decentralized apps. There are more projects coming into the platform, from gas to weather and even space exploration. All these should make the underlying currency become more valuable.
Ethereum upgrades make it better
While it’s true that Ethereum will continue to dominate, its dApps and smart contracts niche are facing a lot of stiff competition. Problems of scalability and relatively high fees give other platforms a chance to attract some of its projects.
Vitalik Buterin and the rest have noted this and are working to make the platform better through upgrades like the upcoming Sharding and Casper implementations. It’s possible that Ethereum will become very popular with proof of stake, skyrocketing in value.
One problem though is the potential for being classified as a security. If Ethereum is declared a security, its value could drop. Although this would constitute a temporary setback, its effect on investor confidence could be big.
TRON (TRX) has a solid claim as one of the top emerging platforms and its founder is doing a lot to make it stand out and achieve its goals. It represents a good opportunity to invest in something that could skyrocket in 2018.
Ethereum, on the other hand, is a platform that needs only to work on a few system upgrades to continue on a path to great value. If you are looking for a cheap coin with huge potential, go for TRON. If you have the dollars to get into Ethereum (ETH), the returns could be phenomenal.