Despite both being the two largest cryptocurrencies in the world, Bitcoin (BTC) and Ethereum (ETH) have very different journeys in 2025. As of July 17, Bitcoin has risen over 26%, while Ethereum has only slightly increased by less than 2%. This raises a tough question for investors: should they choose the coin that has just hit a historical peak or should they buy the coin that is undervalued?
Bitcoin: Digital Gold and a Safe Haven
After President Donald Trump's victory last November, Bitcoin experienced a strong breakthrough. Mr. Trump clearly expressed his pro-crypto stance throughout the election campaign and has maintained this position since taking office. Trump-friendly organizations have deeply engaged in the digital currency market, and his cabinet also includes many crypto-friendly advisors and officials, notably the U.S. Securities and Exchange Commission (SEC), which has taken a softer approach than the previous administration.
Many prominent SEC lawsuits against major crypto companies have been dismissed or settled. At the same time, a series of previous growth-hindering regulations have also been removed, paving the way for traditional finance to engage more deeply in the market: from providing custody services, expanding crypto trading on major brokerage platforms to financial institutions actively buying in.
Bitcoin – with its position as the most famous cryptocurrency – naturally becomes the first destination for this new flow of capital. Notably, President Trump announcing the establishment of the U.S. Strategic Bitcoin Reserve Fund, aimed at holding and buying more Bitcoin from government reserves, has increased long-term value expectations for this asset.
Moreover, amidst the backdrop of U.S. public debt exceeding $36.5 trillion, along with growing concerns about inflation and geopolitical instability, Bitcoin is increasingly seen as 'digital gold' – a safe-haven asset with a limited supply of only 21 million BTC (over 19.9 million BTC mined).
Ethereum: The Future of Decentralized Finance, but Facing Challenges
While Bitcoin follows the path of digital gold, Ethereum is the cradle of smart contracts and decentralized applications (dApps). Many famous tokens like Shiba Inu are built on the Ethereum network. This used to be the default network for crypto developers.
In response to criticism over the high energy consumption of PoW (proof-of-work) systems, Ethereum has transitioned to a proof-of-stake (PoS) model through a multi-year overhaul. Instead of mining coins, investors can now stake ETH to earn interest. This has led some experts – like Cathie Wood – to compare Ethereum to government bonds in terms of yield and stability.
However, Ethereum is facing some significant challenges. First is network congestion, leading to high transaction fees and slow speeds. Second is fierce competition from newer generation blockchains like Solana – which are faster and cheaper. Additionally, the correlation between ETH's weak performance and tech stock groups makes ETH more susceptible to high interest rates and global instability.
However, there are still many bright spots for Ethereum. Major companies are starting to adopt ETH holding strategies in their treasuries, similar to Michael Saylor with Bitcoin. Circle – the issuer of USDC – successfully listing also reinforces Ethereum's position as leading stablecoins like USDT and USDC primarily operate on the ETH network.
Bitcoin or Ethereum: Which Name Can Help You Become a Millionaire?
If only one can be chosen, Bitcoin remains the preferred choice. The reason is:
Bitcoin has reached a level of widespread acceptance, almost becoming the standard of the crypto market.
Bitcoin can play a role in diversifying portfolios, especially during periods of global financial instability.
Large financial institutions like BlackRock have publicly supported allocating 2% of their portfolios to BTC, which could help Bitcoin become a popular holding asset in traditional investment portfolios.
Ethereum is still very attractive with the vision of Web3, DeFi, real-world asset (RWA) tokenization, and the stablecoin market, but it has not yet reached the level of a 'safe haven' like Bitcoin.
Conclusion
Both Bitcoin and Ethereum are assets worth considering for long-term investment. But if you're looking for a 'millionaire maker' – an asset with the potential for breakthrough profitability and value retention over time – Bitcoin still has a higher probability of success in the current context.