Bitcoin 🚀 vs. Elephant 🐘: A Tale of Two Store-of-Value Assets

With all the talk about the upcoming Bitcoin ETF, the halving, and the Elephant.Money protocol’s recent upgrades, it seems timely to compare these two prominent store-of-value assets. While both aim to safeguard your wealth, they differ significantly in many ways. Choosing between them, or even investing in both, boils down to personal preference and informed decision-making. This article aims to equip you with the knowledge necessary to make educated choices about which, or perhaps both, of these assets deserve a place in your portfolio.

Full disclosure; While I’ve strived for impartiality in presenting the information below, I must disclose my primary investment lies in the Elephant token itself. However, let’s delve into the details and see what works for your financial goals.

1. Supply: Scarcity vs. Dynamic Rewards

Cryptocurrencies, unlike government-printed or bank-controlled fiat currencies, are digital assets created through complex calculations and computer power. Each cryptocurrency has unique rules governing its creation, circulation, and usage, described by its protocol. These rules play a crucial role in ensuring fairness, security, and, importantly, supply, which directly impacts the asset’s rarity and price fluctuations.

Bitcoin, the OG of cryptocurrencies, boasts a fixed supply of 21 million coins. This pre-determined cap ensures scarcity, driving its value, but also limits transaction scalability and speed. Mining, the process by which new Bitcoins are created through solving complex math problems, gradually releases these coins into circulation, with the reward halving every 210,000 blocks (roughly every four years). As of January 2024, around 19.6 million bitcoins exist, leaving only about 6.7% to be mined over the next 12 decades.

Elephant, a token on the Binance Smart Chain (BSC), takes a different approach. While its maximum supply is a whopping 1 quadrillion tokens, a 10% fee on every buy and sell acts as a dynamic supply control mechanism. This fee is split, rewarding holders with additional Elephant tokens and locking a portion in liquidity pools. This incentivizes holding, driving price appreciation, and also enhances stability by providing readily available tokens for trading. As a result, the circulating supply of Elephant constantly shrinks, unlike Bitcoin’s predictable, yet gradual, increase.

2. Stability: Steady vs. Innovative Fluctuation

Cryptocurrency price swings can be notoriously volatile, causing potential windfalls or losses in a flash. Bitcoin, renowned for its wild price fluctuations, can easily double or halve in value within a short period. This volatility makes it unsuitable for risk-averse investors seeking stable investment vehicles.

Elephant, while not immune to volatility, introduces an element of stability through its liquidity pools’ link with BUSD, a stablecoin, and although BUSD is being phased out it will still be able to be swapped should a investor wish to withdraw from that pool.

3. Adoption: Global Giant vs. Rising Star

Adoption, essentially how popular and accepted a cryptocurrency is, significantly impacts its value and potential. Bitcoin, the undisputed leader, boasts millions of users and widespread recognition as a form of money, store of value, and cross-border transfer tool. Its market capitalization exceeds $1 trillion, surpassing the GDP of many countries, a testament to its reach and influence. Bitcoin enjoys a robust network of developers, miners, exchanges, and other support services, solidifying its security and functionality.

Elephant, a relatively young project, occupies a niche within the crypto sphere. Its market capitalization hovers around $400 million, far from Bitcoin’s staggering figures. As a token within the Elephant.Money protocol, it offers yield by way of reflections and price appreciation features to a dedicated community. However, its reliance on the less established BSC platform limits its interoperability and accessibility compared to Ethereum-based alternatives. Additionally, its smaller user base and community expose it to higher market manipulation risks compared to the well-established and battle-tested Bitcoin (although market manipulation is somewhat limited by the 10% in and 10% out fee).

4. Innovation: Legacy Pioneer vs. Dynamic Ecosystem

Cryptocurrencies thrive on innovation, constantly evolving to offer new solutions and possibilities. This factor deeply influences their value and potential, reflecting their ability to adapt to a changing market landscape.

Bitcoin, the originator of blockchain technology and decentralized digital currencies, revolutionized the world’s perception of money and value. Its pioneering role solidified its legacy as the standard-bearer of the crypto market. However, its network can only process around 7 transactions per second, struggling to keep pace with its ever-growing user base. This leads to congestion and slow transaction times, hindering its suitability for fast and convenient payments. Additionally, Bitcoin’s energy-intensive proof-of-work consensus mechanism, consuming roughly 127 Terawatt-hours per year, raises environmental concerns and limits its scalability. This conservative approach to development prioritizes security and stability over speed and adaptability, leaving room for competitors with more agile solutions.

Elephant, conversely, embraces innovation as a core principle. Its integration with the BSC offers faster, cheaper, and more eco-friendly transactions compared to Bitcoin. The Elephant.Money protocol boasts unique features like ‘Futures’ product for hedging future price fluctuations, unlimited NFTs generating passive income, and the newly formatted ‘TRUNK’ that will potentially be listed on exchanges later this year.

Elephant’s proof-of-staked-authority mechanism consumes significantly less energy than Bitcoin’s proof-of-work, contributing to a more sustainable approach. Additionally, its compatibility with the Ethereum Virtual Machine allows for interoperability with Ethereum-based dApps, expanding its functionality and appeal.

Conclusion: Diverging Paths, Diversified Choices

Bitcoin and Elephant, though both aiming to safeguard wealth, represent distinct approaches within the store-of-value landscape. Bitcoin prioritizes legacy, stability, and scarcity, catering to risk-tolerant investors seeking a well-established, albeit slower and less adaptable, asset. Elephant, on the other hand, embodies innovation, dynamism, and community-driven rewards, attracting those seeking faster transactions, environmental consciousness, and potentially higher returns through active participation in its evolving ecosystem.

Ultimately, the choice between these two (or even both) depends on your individual risk tolerance, investment goals, and technological preferences. Consider your financial priorities, research extensively, and make informed decisions to navigate the ever-evolving world of cryptocurrencies. Remember, this article is a starting point, not a definitive guide. Your journey into the realm of store-of-value assets requires continuous learning and adaptation to make the most of your investments.

I really hope this comprehensive and up-to-date article has given you a clear and in-depth comparison of Bitcoin and Elephant, so that you may go forth and prosper.

As stated previously, I am heavily invested in Elephant and have made my decision on which asset ratio is best for my portfolio, I just hope the above has helped you in deciding which/or both is best for you.

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PLEASE FEED THE ELEPHANTS :) If you like this information please consider clapping and following this channel and/or saving yourself 1.5% on Elephant transactions (8.5% instead of 10%) by adding me as your Partner on Elephant Money (0x4F570AFEA2d03c47A2cE622Bf25CE293cC189Fda)

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Disclaimer: This article serves educational and entertainment purposes only. It does not constitute financial advice, and investing in cryptocurrencies carries inherent risks. Conduct thorough research and seek professional advice before making financial decisions in the volatile cryptocurrency market. The author’s views do not necessarily reflect the official stance of any organization or entity.