In the past, investment options were limited to things like stocks or commodities such as gold and silver. Things couldn’t be more different today. Now, investors have a huge range of options to choose from, including sophisticated cryptocurrencies such as Solana and Bitcoin.
However, there are downsides to having so many options. It can be extremely difficult to decide which investment is right for you. To help, we’ve drawn some key comparisons between Solana and Bitcoin to give you a better understanding of the differences between them and to make it easier to choose which to invest in.
Solana v Bitcoin: A Price Comparison
When it comes to evaluating investment options, one of the first and most important factors that you need to take into account is the price.
Cryptocurrency values are notoriously unpredictable, which can make accurate price analysis and comparisons quite difficult. Doing so is still important, as it’s the only way you can assess how much an investment could cost you and the potential returns you could see.
Let’s look at Solana first. At the time of writing, the asset is trading at a price of $78.59. This represents growth of 24.74% over the past month and of 541.51% over the past year.
In terms of industry standing, Solana has a market cap of $33.64 billion, making it the seventh-largest coin overall.
Pretty impressive stats. Let’s take a look at how Bitcoin is performing in comparison.
Currently, Bitcoin is valued at $42,860, considerably more than Solana. Over the past 30 days, Bitcoin’s price has increased by 18.22%. When looking back at the past 12 months, it has grown by 157.66%.
At a glance, Solana appears to be the more attractive investment option. It is cheaper and has demonstrated more positive growth when compared to Bitcoin. However, this doesn’t tell the whole story.
The Technology
Cryptocurrencies are unlike commodities like gold in that the technology and features they offer play an enormously important role in their viability as an investment option. When comparing Solana and Bitcoin as potential investments, assessing the technology behind each asset is critical.
Solana is a blockchain platform that uses the SOL cryptocurrency. However, the asset was designed to be more than a mere alternative payment method. The Solana blockchain can be used to develop and implement dApps and things like smart contracts. This will make it an incredibly valuable asset as we head towards a Web3 future where decentralisation and automation will be key factors.
Bitcoin, on the other hand, is far more simplistic. As the very first cryptocurrency, it was designed solely as an alternative payment method, and this remains the asset’s primary purpose. This isn’t necessarily a bad thing, as there are plenty of uses for alternative options such as currency, but it does mean Bitcoin is regarded by some as overly basic when compared to more modern assets like Solana.
When looking at the technology offered by the two cryptocurrencies, Solana again appears to come out on top. The tech that powers the asset is capable of far more and epitomises the power of the new generation of cryptocurrencies.
Image and Reputation
So far, we’ve examined tangible factors like the price and technology of Solana and Bitcoin. However, to draw truly accurate comparisons between the two, we also need to consider their image and reputation.
Solana is a new cryptocurrency that first hit the market in 2020. Despite how new it is, it has quickly garnered a reputation and is regarded by many as one of the most exciting cryptocurrencies currently available. However, it is still relatively unknown outside of the crypto community, although this could change in the future.
Bitcoin is much older; it was launched back in 2009. It has also enjoyed far more mainstream attention and is a household name that almost everybody is aware of. This is an important factor to consider when weighing up Solana and Bitcoin as investment options, as it can affect how the values of the assets behave in the future.
Future Potential
Any investment involves risk. You are putting your confidence in the belief that an asset will increase in value, allowing you to turn a profit. Forecasting the future of any asset is difficult, especially when it’s something as unpredictable as cryptocurrency.
Solana has been tipped by many experts to be the future of the crypto industry. As Web3 rolls out, assets like Solana will prove invaluable and could serve as the link between users and the new internet.
While Bitcoin is not as well suited for a Web3 world, it still offers unique benefits and is by far the most popular and valuable alternative payment option. As we move away from traditional financial systems and institutions, Bitcoin could be at the forefront of the decentralised currency revolution.
Which is Best?
As we have demonstrated above, there are key differences between Solana and Bitcoin that must be taken into consideration when evaluating each as a potential investment option. The price, technology, reputation and future potential of the two assets are some of the contrasting factors that investors need to be aware of, and these should be evaluated in detail before moving forward and making a final decision.
