The Difference between Bitcoin and Ethereum: Which One Is Better?

https://eclipcoin.com/blog/bitcoinvsethereum
Digital money is gaining more and more popularity with every new day. Crypto is a revolution in the world of money. The best thing is that no third party controls it. No government or bank can issue crypto coins or prohibit them. A central bank cannot access your crypto wallet or confiscate digital currencies.

In 2020, the prices of most cryptocoins went down because of the pandemic. However, they are getting back in trend. They are the real weapons markets in 2021. Two of the popular cryptocurrencies are Bitcoin and Ethereum. When choosing between them, you should consider many factors. Bitcoin was the first digital currency ever, but Ethereum has high chances to make it through. Read this post to understand which type of investment is the right for you.

What Is Ethereum?

We have most of the articles dedicated to Bitcoin and the reasons to buy it. For example, to learn more, you can have a look at this post. Just like Bitcoin, Ethereum (ETH) belongs to a blockchain network. The Ethereum network and the Bitcoin network are similar yet different. ETH creator is Vitalik Buterin. This digital currency has been accessible since early 2014. Have you heard about an initial Coin Offering? That was the first market to introduce ETH. Unlike Bitcoin, Ethereum is a separate platform. It is not controlled by any intermediaries as well.

“Another major difference is that Ethereum can develop its own blockchain-grounded programs. They call them decentralized applications as the currency is decentralized itself. Some call these tools simple dapps. The idea is to create and offer smart contracts. Unlike with traditional contracts, no third parties should be involved. The automated system does the entire job and makes sure that all conditions are met.”

Ethan Goldenberg from Eclipcoin, Financial expert, 10 years+ in the finance and cryptocurrency market

Exploring the Differences to Be Under the Loop

Ethereum platform includes everything you need for trading and communications. For instance, it has:

  • Ad systems
  • Social networks
  • Community
  • Academy
  • Payment service

Many small companies and startups started developing on Ethereum. Those are mostly game developers and investment agencies. By definition, it may seem to you that in a battle Bitcoin vs Ethereum, the second one is the winner. However, it would be too simply and senseless to make it this way.

The market cap is less than 1/10 of Bitcoin, which can boast 14 billion dollars. At the same time, it trades around 2,5 times less than bitcoins. In contrast to BTC, which trades roughly twenty-five billion dollars daily, Ethereum reports around nine billion dollars daily. That is not a bad result, however. To purchase bitcoins or ETH — this decision depends on many subjective factors. Experts recommend investing in several cryptocurrencies at a time as you never know for sure what will happen tomorrow.

Approaches to mining Bitcoin and Ether are almost the same, but ETH miners can set up certain fees for verifying a transaction. You can buy any number of Ethereum coins per time. At the same time, Bitcoin has a higher valuation.

What about the Protocols?

ETH and BTC run on different protocols. It means that their processes aren’t connected. Do not expect that what you do on the Bitcoin platform can be done the same way on the Ethereum native platform. You should keep it in mind when it comes to permissioned vs permissionless transactions.

Is It Possible for ETH to Overbeat BTC?

Both cryptocurrencies have their pros and cons. It is impossible to say that Ethereum is better than Bitcoin or vice versa. To speculate on the valuations of these digital coins, you should keep an eye on such factors as:

  • Approaches to using each crypto
  • The acceptance rate
  • Future forecasts for distribution and usage
  • Historical data on the tool

“No matter how expensive Bitcoin is today compared to Ethereum, it all may change in one moment. One thing that most financial experts predict is that both currencies will go up significantly by the end of 2021. On the whole, this market is rather volatile, so you should keep an eye on the market trends. Crypto’s underlying value is uncertain.”

Ethan Goldenberg from Eclipcoin, Financial expert, 10 years+ in the finance and cryptocurrency market

Conclusion

So, unlike Bitcoin, Ethereum is more than a currency. Organizations apply ETH in the software development processes as it serves as a ledger tech. ETH is more robust though both currencies operate in blockchain. Decentralized applications can be built upon it.

Currently, more than 65% of bitcoins has been mined; less than fifty percent of ETH are mined so far. Who knows how far it may go — just keep an eye on their price movements.

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