The cryptocurrency market has grown dramatically in recent years, so it can be confusing to figure out the best option when it comes to investing your hard-earned cash.
Thankfully, we’ll be breaking down and comparing various types of crypto assets. In this piece, we’ll focus on Bitcoin and Cosmos Hub.
History
The best way to learn more about anything is to return to its roots. In this section, we will discuss how both of these cryptocurrencies came about.
Bitcoin (BTC)
Bitcoin first arrived on the scene in 2009 as a result of the global financial crisis or “Great Recession” (a nod to 1929’s Great Depression) from 2007 to 2009.
It was created by an individual or group known only as Satoshi Nakamoto, and the identity of the creator or creators has never been made public. The digital currency’s whitepaper was initially released in 2008, entitled: “Bitcoin: A Peer-to-Peer Electronic Cash System.”
The Bitcoin blockchain launched when the Genesis block (the first Bitcoin block) was created in 2009. Since then, Bitcoin has skyrocketed in popularity and has become the most popular and valuable cryptocurrency on the market.
Cosmos Hub (ATOM)
Cosmos began in 2014 when Jae Kwon and Ethan Buchman created Tendermint, the consensus algorithm at the heart of the Cosmos network.
The network’s first blockchain, known as Cosmos Hub, arrived on the mainnet in 2019, while the first sale of an ATOM token occurred back in 2016, which is the same year that the Cosmos white paper was published.
This was only the beginning of the Cosmos ecosystem, as it plans to become the internet of blockchains.
The ATOM token is the native token of the Cosmos Hub, one of the many hubs on the network, that acts as the proof-of-stake chain. The currency’s whitepaper is undergoing change, with the community set to vote on various updates.
What It Does, And Why It Was Created
Knowing how cryptocurrencies function and why they were invented can help you determine the best investment choice.
Bitcoin (BTC)
As we have noted above, Bitcoin is the most valuable cryptocurrency on the market, and it was created in response to the global financial crisis experienced from 2007 to 2009.
The goal was to create a digital currency without central control from banks and governments. Bitcoin allows people to send money over the internet and acts as an alternative payment system that operates without any central control but can otherwise be used like any other fiat currency.
Cosmos Hub (ATOM)
Cosmos Hub was created to solve some of the most challenging issues the blockchain industry faces.
It aimed to act as an “antidote” to the slow, environmentally harmful, expensive, and unscalable proof-of-work protocols used by some other blockchains like Bitcoin.
Cosmos aims also included making blockchain technology less complicated for developers, which it has been able to do owing to its modular framework.
The Cosmos software development kit or Cosmos SDK makes it incredibly easy for developers to create Cosmos blockchain applications.
Cosmos has also made it less difficult for blockchain networks to communicate with one another thanks to its Inter-blockchain communication protocol, which allows Cosmos to link to other blockchains.
Price History
The price history of digital assets is an important thing to consider if you are interested in investing in the industry, as it will give you an idea of the predictability of the market.
Bitcoin (BTC)
Bitcoin has come a long way since its initial creation. On May 22, 2010, someone used 10,000 Bitcoins to purchase two pizzas worth $25. This was back when one Bitcoin was valued at a quarter of a cent ($0.0025).
By April 2011, the value of a Bitcoin surpassed $1, which was a significant milestone at the time, but nothing compared to what was still to come. By the end of 2013, one Bitcoin was valued at $1,000, and the cryptocurrency would continue to increase in value until it reached its peak in October 2021, when one Bitcoin was valued at a record high of $66,974.77.
Since then, various external factors have affected the price of the digital asset, as one Bitcoin is currently worth $19,412.20 in October 2022.
Cosmos Hub (ATOM)
ATOM tokens were initially valued at $7.50 when they were first released in March 2019, and the price then fluctuated between $2 and $8.
The ATOM token experienced its first major value peak in May 2021, when ATOM reached a value of $29.44. In September 2021, only four months later, the token reached its peak, much to the delight of ATOM holders, and was then valued at $44.54.
Since then, the same external factors affecting Bitcoin also touched the Cosmos community, leading to the token’s value dropping to around $11.88 in October 2022.
Market Cap
The market cap is an important aspect to consider if you plan on investing in cryptocurrency, as it can help you determine a digital asset’s growth potential, popularity, and total value.
Bitcoin (BTC)
Bitcoin is currently the most popular and famous cryptocurrency, which explains why it has the highest market capitalization of all digital currencies.
Bitcoin’s market cap is currently set at $367.96B.
Cosmos Hub (ATOM)
ATOM has a market cap of close to $3.4B due to it being a much newer cryptocurrency. Cosmos has the 22nd-highest market cap of all cryptocurrencies.
Similarities
Bitcoin and Cosmos aren’t very similar to one another. Still, some of the things they do have in common are that they are both stored in specialized digital wallets and unregulated and decentralized from any banks, governments, and other regulatory bodies.
Other than that, the two cryptocurrencies couldn’t be more different from one another.
Differences
While Bitcoin acts as a way to exchange value, Cosmos is far more complex, as it seeks to provide a decentralized network that will allow other decentralized blockchains to interact.
The Cosmos ecosystem seeks to solve the two most significant issues that blockchain faces: scalability and interoperability.
The main difference between the two digital assets is that while Bitcoin was intended to mimic fiat currency, ATOM tokens are used to power Cosmos and the Cosmos blockchains.
Bitcoin features built-in deflation, which makes it more difficult to mine over time. This helps increase the currency’s value, as a limited supply increases its demand and value.
ATOM, on the other hand, is an inflationary token, which means that ATOM token holders receive staking rewards if they stake ATOM. Staking effectively refers to “banking” your tokens by “investing” them to support blockchain operation.
Risks
The best investment advice you can receive is to weigh the risks before investing money into anything, and cryptocurrency is no different. This section will discuss the risks attached to Bitcoin and Cosmos Hub.
Bitcoin (BTC)
Most of the main risks associated with investing in any cryptocurrency apply to Bitcoin, even though it is the most valuable digital asset on the market.
Bitcoin is highly volatile and can spike and dip in value at a moment’s notice, like other cryptocurrencies, as its value is not connected to any real-world assets.
Cosmos Hub (ATOM)
Cosmos and its ATOM token are also subject to many of the risks that come with other cryptocurrencies, and the fact that it is a newer token also makes it more unpredictable.
However, Cosmos’ future looks promising and based on its performance since being launched, its level of risk seems similar to other top cryptocurrencies.
Where You Can Buy It
Bitcoin (BTC)
It has been much easier to purchase Bitcoin in recent years, as you’ll easily be able to buy it through services such as Coinbase, PayPal, Robinhood, Binance, Kraken, eToro, and Uphold.
Cosmos Hub (ATOM)
ATOM tokens can also easily be purchased via various crypto exchanges, such as Coinbase, Crypto.com, Binance.US, Kucoin, and Gate.io.
How You Can Exchange Bitcoin For ATOM
You can easily exchange your Bitcoin for ATOM tokens by using Cosmos’ Atomic Wallet. They feature 24/7 support, and their transactions typically take between 5 and 20 minutes.
Future Plans
As a potential investor, you’d want to know what the future holds for these two cryptocurrencies, which is why we’ll discuss this below.
Bitcoin (BTC)
Bitcoin’s future looks promising, and experts have predicted the digital currency’s value may reach close to $64,000 in 2023.
However, investors should expect the token also to experience some dips during this period.
Cosmos Hub (ATOM)
ATOM tokens are also set to experience some positive growth, as one ATOM token is predicted to be worth around $63 by the beginning of 2023.
Unfortunately, ATOM could also be affected by rivals in the coming months, so investors should keep a close eye on it.
References
https://trading-education.com/bitcoin-vs-cosmos
https://www.coindesk.com/price/cosmos/
https://v1.cosmos.network/resources/faq
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