Ethereum and Bitcoin are the highest valued cryptocurrencies around the world. Both of these combined have 24% of the cryptocurrency market share. That means ethereum and Bitcoin is the quarter of the market.
Bitcoin is the market leader for the cryptocurrency market. It is the first-ever cryptocurrency, so people trust it more than any other market. The main reason why its price does not go down is that Bitcoin has ruled that they will not make more Bitcoin. On the other hand, ethereum has no policy like that.
Supply and Demand
Bitcoin has always been the most in-demand in comparison to other currencies. Bitcoin has earned a good name in the market. Most new investors do not even know about other currencies, whereas Bitcoin has become very popular around the world.
Like all markets, supply and demand play a very important role in the price, so for the same reason, BTC price got higher than ETC price for the same reason. Check out the price on this bitcoin calculator
Cost of Production
The cost of production plays a very important in pricing anything. To mine a Bitcoin, it takes a higher bit processor, more power, and time. You can mine Bitcoin with only a certain type of processor. Other systems crash in the process.
The high cost of production is the major reason why BTC price is higher than the ETH price.
Easy Currency Exchange
Bitcoin is the market leader of the cryptocurrency market, the same as USD. The all the foreign exchanges that happen around the world are done in exchange USD. In the same way, when a cryptocurrency exchange is made, it is mostly in exchange for Bitcoin.
Most people also accept Bitcoin in exchange for USD. There are many cryptocurrency enthusiasts. Many people want to buy Bitcoin, but they cont want to install systems for it, so they buy Bitcoin from other people who already Bitcoin and earn from profits from only selling and buying Bitcoin.
Constant Number of Coins
Bitcoin has a rule, which they promise never to break. They say that even if miners and investors buy all the Bitcoin they still will not make more coins, whereas ethereum does not have a rule like that. Ethereum might make more coins in the future when their existing coins come to an end. This policy is also a major reason why BTC is higher than the ETH price.
Conclusion
Bitcoin has a major pioneer advantage. It has gained trust, whereas, people are using ethereum as a tool for buying more Bitcoin. Bitcoin has gained a lot of goodwill in the market because of the success stories it has. Many people have made crazy digits only because they invested in Bitcoin.
Ethereum is also coming across as a major currency in the market. Both of these currencies combined make up a quarter of the market. Bitcoin still takes the lead because everybody trusts it more, and more people know about it. It is also very high in demand.
