The discussions about BTC and ETH in the past two years have become increasingly interesting. It’s no longer just a simple technical comparison, but a deep interpretation of asset attributes.

First, let's talk about BTC. Comparing it to gold has become a consensus for many, and the logic behind this is quite solid. The value of gold comes from mining costs and scarcity, while BTC’s value derives from its mathematical code and supply cap. In the upcoming cycle where inflationary pressures may rise, BTC’s role as a "hard currency" becomes especially critical—it has become the true outlet for risk-averse capital.

From a data perspective, the global gold market cap is about $14 trillion, while BTC hovers around $1.8 trillion. What does this gap mean? If BTC truly meets the demand for digital asset allocation by global central banks, the price potential is enormous. Following the logic of market cap parity, a single BTC could directly reach $700,000. This is not a pipe dream but a natural result of the digital migration of global assets.

The story of ETH is somewhat different. If BTC is used for "storing" value, ETH is used for "using" value, corresponding to the industrial attributes of silver. Silver is a necessity in photovoltaics and electronics manufacturing, and ETH is a "fuel" in DeFi, smart contracts, and L2 scaling. As long as the Web3 world continues to operate, the burning demand for ETH will persist.

From a valuation perspective, silver’s market cap is far below gold’s, but its volatility is greater and its explosive potential is stronger. ETH follows this logic as well—it’s not here to compete with BTC over who is more "gold-like," but it is the lifeblood of the digital industry. In the later stages of a bull market, ETH’s elasticity often surpasses BTC’s.

To summarize: BTC is responsible for stable wealth defense, while ETH is responsible for wealth growth. The investment approach for 2026 should be just that—using BTC to safeguard your asset floor, and ETH to push your asset ceiling higher. This is not a binary choice but a complete digital asset allocation system.