Bitcoin vs Waves: Comparison for Investors

This article provides the facts for investors to understand and compare Bitcoin vs Waves. We cover the fundamental differences between the two cryptocurrencies, price performance and what could happen in the future.

For this reason it is worth mentioning that this article is for informational purposes only. None of the information on this page should be considered financial advice. If we do express an opinion in this article you are to go and do your own research. Additionally you should consult a financial advisor.

Comparing Bitcoin vs Waves

Comparing Bitcoin vs Waves is like comparing apples with oranges. This is because although Bitcoin and Waves both fall under the umbrella of cryptocurrencies, they are fundamentally different. Bitcoin is purely a cryptocurrency and Waves is more of a crypto commodity.

If you are not aware, there are 4 different types of cryptoassets. Learning about them will help you understand the crypto space much better. This will inform you how cryptos are classified and to an extent valued.

Waves is more like Ethereum than Bitcoin. This is because Ethereum is also a crypto commodity. In short, crypto commodities offer up their platform as the basis for others to develop their products. This could be cryptocurrencies or services. On the other hand Bitcoin is purely a cryptocurrency that is meant to be used as a medium of exchange.

Bitcoin Is An Asset

Bitcoin is the first cryptocurrency that came into existence. It is a robust cryptocurrency and is the most popular out of all the cryptocurrencies so far. As a result it has the highest market capitalisation out of any crypto.

Bitcoin was not that popular back when it first came out. In March 2010 a first adopter tried to auction 10,000 Bitcoins for $50. There were no buyers. By the start of May 2010 Bitcoin was already trading around $3.50. At a Bitcoin price of $47,000 that is over 1,300,000% gain from the $3.5 price in just 11 years.

Nothing comes close to the percentage gains Bitcoin has had. It has far outperformed the stock market and any other asset in history. As a result Bitcoin is considered an asset. Thanks to Bitcoin and some other cryptocurrencies, cryptocurrencies are a new asset class.

Bitcoin vs Waves: Potential Scenarios for Bitcoin

On the other hand, although Bitcoin has performed well, we do not know what the future has to hold. Bitcoin could continue doing as well, plateau or go down in value. It would depend on the market in general and people’s perception. Here are some potential scenarios on what could happen to the Bitcoin price.

Bitcoin’s Best Case Scenario

In the Bitcoin vs Waves debate, one of the best outcomes for Bitcoin would be hyperbitcoinisation. Hyperbitcoinisation would entail Bitcoin taking over from fiat dominance in an economy. In other words, products and services will not be priced in dollars, pounds, or euros. Instead Bitcoin will be used for transactions.

Hyperbitcoinisation is a slow process, but these things take time. However it might already be happening. For example El Salvador has made Bitcoin legal tender. Additionally there are some other South American countries that are considering doing the same. Perhaps there might be some in Africa also.

If hyperbitcoinisation happens there is no knowing what Bitcoin will be worth. It would definitely be worth much more than what it is now. In that kind of scenario the price of one Bitcoin would be worth millions.

Additionally society will greatly benefit from hyperbitcoinisation. This is because Bitcoin’s monetary policy is not flexible. There can only ever be 21 million coins that exist and it cannot be altered.

This is unlike government and central bank money printing. They print money out of nothing and cause inflation which has a detrimental effect on society over time. (If you do not know why a limited money supply is a good thing you can read the article: sound money vs easy money. You can also read how inflation works here: what is inflation.)

Without Hyperbitcoinisation

Bitcoin might not experience hyperbitcoinisation. However for our comparison Bitcoin vs Waves, Bitcoin is still likely to go on and do well. However investors have noticed that Bitcoin over time is experiencing diminishing returns.

This is quite normal when an asset becomes more mature. In fact Bitcoin will start to behave like other more established assets. It will end up having less percentage gains and have less volatility overall both up and down.

Bitcoin Yearly Returns

YearPercentage gain
20111468%
2012189%
20135429%
2014-56%
201534%
2016125%
20171335%
2018-73%
201994%
2020304%
202170%

2011-2020 sourced from CoinsKid Twitter account. 2021 sourced from CoinMarketCap.

Bitcoin Improvements

Bitcoin developers keep improving Bitcoin. In fact they are making progress on Bitcoin’s layer 3. It could make Bitcoin more valuable.

So far most of the work has been kept quiet, but there is some news about it. Developers are working to make Bitcoin more like Ethereum by allowing Dapps to be built on it. You can read more about it on the article: Bitcoin layer 3.

Bitcoin vs Waves: Bitcoin is Established

Some people say that Bitcoin could plateau or tank. However this is highly unlikely and they are probably do not know much about cryptocurrencies. The Bitcoin price depends on what is happening in the market at the time.

Perhaps there could be better cryptocurrencies which would make people want to ditch Bitcoin in the long run. However if this was the case then people would opt for other cryptos only for very valid reasons. Bitcoin is very well established at this point. As a result it does not just have individual investors, but institutional investors as well. Moreover financiers are created Bitcoin financial products to keep up with market demands.

However say for example we have to make a theory on why people would ditch Bitcoin. One valid reason for people to shift to another crypto is because they want privacy. So they will buy privacy coins instead.

Bitcoin is fully transparent. If third parties get to know your Bitcoin address they can see everything. They will know how much Bitcoin you have, all you transactions and who you transacted with. It is very much unlike a bank that hides all your details for security reasons.

All There is to Know About Waves

As mentioned, Waves is more like Ethereum than Bitcoin. Waves could also be compared to Polkadot and Solana. This is because all of these platforms are crypto commodities. They are the foundation block for other products to build upon them.

The good thing about Waves is that the team recognised that companies want their own blockchains. So developers set out to accommodate that request. Waves also allows companies to customise their own blockchains. Including whether they want to make it a public or a private blockchain.

Companies can also create a permissioned list of people who can interact with their blockchains. Moreover Waves made it easy to adopt blockchain. In fact companies are able to set up a blockchain of their own within 15 minutes. This is much better than can be said for some other crypto commodities. Sometimes companies can take weeks to set up their own blockchains.

Bitcoin vs Waves: Waves ICO

In 2016 Waves launched its ICO and raised over $16million worth of Bitcoin. At the time it was the second most funded platform. It showed keen investor interest.

Bitcoin vs Waves: Waves Progress

Since Waves is easy to set up it has managed to attract a small selection of companies. They have built their blockchains and are up and running. You can have a look at the Dapps here on Top Waves Dapps. So far the size of the list of Dapps is not that impressive. Additionally there are not that many users going on the Waves Dapps.

However there was some big news for Waves in mid 2020. Waves and Microsoft Russia announced a partnership as outlined on Medium. They agreed to cooperate on corporate blockchain solutions and cloud technologies.

Waves is going to be added to Microsoft’s Azure Marketplace which is on Microsoft’s cloud. By doing this they will be able to offer blockchain technology to corporations in Russia and globally. Additionally the roll out will be faster and cheaper.

Waves Performance

Since Waves launched in mid 2016 it has had an equal mix of good and bad years.

Waves Yearly Returns

YearPercentage gain
2016-77%
20175627%
2018-74%
2019-68%
2020490%
2021398%

Sourced from CoinMarketCap

However ever since the news hit of Waves Enterprises teaming up with Microsoft, Waves has taken off. Before the announcement in mid 2020 Waves’ price performance was not great. In fact it was rather flat with barely any price fluctuation.

Waves really had a big turn around. As a result all the percentage gains made in 2020 happened after the announcement.

This year Waves is bringing in good returns for investors. Let’s compare the returns between waves and other crypto commodities. Note that the YTD value for Bitcoin is 65%.

Crypto commodities YTD% gains as of 15th September 2021

CryptoYTD%
Avax1337%
Cardano1342%
Cosmos468%
Ethereum380%
Polkadot342%
Solana8683%
Waves398%

Sourced from CoinMarketCap

Similarly to other crypto commodities Waves success is going to be tied with what it offers as a technology.

The adoption of any crypto commodity is going to be a reflection of a few things. One being the ambitions of its team and their ability to develop what is desired by the market. They need to produce a quality product to encourage more companies and individuals to use Waves. The more the better.

Bitcoin vs Waves Conclusion

To sum up this Bitcoin vs Waves evaluation Bitcoin has nothing to do with Waves. It is more like Ethereum and other crypto commodities like Polkadot and Solana. In other words there is no comparison.

Gains

The only comparison that can be made for Bitcoin vs Waves is the YTD% gains. As mentioned Bitcoin’s is 65% and Waves is 398% so far this year.

Overall Bitcoin had more up years than down years. Waves has had just as many up as down years. However ever since Microsoft partnered up with Waves, things have turned around and it has been doing well. In fact Waves YTD value has been explosive.

Since Waves is a smaller value crypto it tends to have larger swings in price in comparison to Bitcoin. Since Waves is still quite new it is more of a speculation than anything else. Not that Bitcoin is not. However Bitcoin has been around for much longer. It doesn’t look like it is going to go away any time soon.

That is to say although Bitcoin has been having diminishing yearly returns its returns are far from mediocre.

In that respect Ethereum has had many more up years than down years. It has also been around for longer. Other crypto commodities have not been around for long at all. So it is hard to judge what will happen over the long run.

However if you are purely looking for gains there are other crypto commodities that are outperforming Waves. You can either pick a crypto to speculate on its price or buy it because you believe in the fundamentals of the project.

General information

Bitcoin has the first mover advantage. It was the first cryptocurrency that came into existence. Waves launched after Ethereum and other crypto commodities.

Both Bitcoin and Wave’s returns will depend on what happens in future. There could be a number of scenarios that pan out.

Bitcoin’s future is still looking bright so far. Waves partnership with Microsoft is great so far. However with either you never know what will happen. The trick is to keep an eye out for what is going on with the cryptos you hold and adjust accordingly.

Crypto portfolio

What we can say is that most investors like to keep diversified portfolios. This is so that their exposure to one investment is limited. This is especially the case should your one investment go sour.

For crypto investors they likely have a diverse range of cryptoassets. So you may choose to select a cryptocurrency like Bitcoin and crypto commodities and other cryptoassets. Like this you will have a truly diversified portfolio of cryptos.

This is not to say you have to buy either asset. You could choose to buy both, one or neither. You have to figure out what you think is best.

If you need some crypto advice you can have a look at The Crypto Vigilante. Here is The Crypto Vigilante review. They are not financial advisors, but they have been into cryptos since the beginning. They understand the space very well. Keep a look out for particularly what Ed Bugos says. Also seek financial advice.

They send regular updates and they understand the space very well. Keep a look out for particularly what Ed Bugos says. He is good with macro trends and for an overall market view. All newsletters don’t use jargon, but relate what goes on in a very easy to understand way.

If you would like to buy either crypto here are the links for guidance: buy Bitcoin and buy Waves.

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