Both Ethereum and Bitcoin are two of the most well-known cryptocurrencies worldwide. Bitcoin, being the older brother, has worked its way through the crypto market, where it now holds a total share of 70%, whereas Ethereum, widely popular as Blockchain 2.0, holds an 8% share in the crypto market.
For newbies looking to invest in the crypto market, it can be very confusing to select from Ethereum vs Bitcoin. Here, in this piece, we’ll be talking about the difference between both the cryptocurrencies and comparing the qualities of the two to figure out the best.
Bitcoin vs Ethereum- The Difference
Both Bitcoin and Ethereum evolve around the same crypto market but have some significant differences if we look upon them carefully.
- Birth: Bitcoin was launched in 2009, while Ethereum was launched in 2015.
- Concept: Bitcoin serves as a ‘digital currency’ platform, whereas Ethereum can be defined as a decentralized platform running ‘smart contracts’.
- Purpose: While both BTC and ETH’s primary purpose is to work as a secure medium of exchange, ETH is also used on the Ethereum network to run applications.
- Transactions: Bitcoin transactions are recorded manually while the system records Ethereum’s transactions.
- Block Time: A Bitcoin transaction might take minutes to confirm while Ethereum’s is verified in seconds.
- Algorithms: Bitcoin uses the SHA-256 algorithm, while Ethereum uses the ethash algorithm.
- Coin Supply: Bitcoin controls its demand & supply by limiting Bitcoin coins to 2,10,00,000. On the other hand, Ethereum has no limit on its coins where its currency, Ether’s, production is continuous.
Fact: Today, both the cryptocurrencies BTC & ETH stand at the top of the crypto market list. During its launch, BTC was priced at a few dollars while ETH was priced at $ 2.83 who currently costs $7588 & $171, respectively.
Ethereum vs Bitcoin – Better?
If the Bitcoin vs Ethereum battle were real, it would be challenging to figure out which one would be a better survivor. Both the cryptocurrencies run on the same grounds but have different concepts and purposes, as you must’ve read above. It, however, is and will always be a difficult choice to select better investment out of the two because of their complex natures.
Ethereum, being a more advanced technology, provides more uses than Bitcoin. Not only does it have an unlimited coin supply in comparison to Bitcoin but a quicker transaction speed! Secondly, Ethereum comes at a much lower price than Bitcoin and has higher reliability and stability than other cryptocurrencies, making it a great asset!
But if we look closely, despite both BTC & ETH, having their own set of differences, they both work on the same fundamentals. Both the cryptocurrencies hold their own place in the market, which is equally important. It is a very challenging task to select one on any grounds because of their different and unique purposes. Hence, while thinking about investing the better cryptocurrency, especially out of the two best- Ethereum vs Bitcoin, it’s necessary for every individual to do meticulous & in-depth research to select the investment of their choice.