Ethereum vs bitcoin – which is better? Which should you invest in? Does Ethereum have any potential to overtake bitcoin? Can you compare the two? Etherum has gotten so much attention since it was announced in 2014 by Vitalik Buterin at the American bitcoin conference. The aftermath of its increasing popularity has naturally been its comparison to the first virtual currency- bitcoin! However, it is very crucial for investors to identify the similarities as well as differences of Bitcoin vs Ethereum.
What are the similarities between Bitcoin vs Ethereum?
Both bitcoin and ethereum are valuable – in April this year bitcoin and ethereum were the top two coins in the world respectively. This is of course before ripple crept in regarding market capitalization as well. Nevertheless, bitcoin and ethereum are still two of the most valuable cryptocurrencies.
The two coins are both quite popular– despite the hundreds of cryptocurrencies that now exist, bitcoin and ethereum are still widely used.
The two coins are old – some of the recently established coins perform better than bitcoin and ethereum in several ways. Newer coins are faster to transfer; they have additional features as well as low fees.
Both coins use proof-of-work mining – Proof of work mining was used by all cryptocurrencies to handle transactions in the beginning. However, nowadays some coins do not even need mining much less proof of work.
What is the difference between Bitcoin vs Ethereum?
The first important fact that we need to acknowledge is that there are two types of digital coins. These are cryptocurrencies (e.g. bitcoin, Zcash, litecoin etc.), then there are tokens (e.g. Ethereum, Blockstack etc.)
Bitcoin is a cryptocurrency
Bitcoin along with other cryptocurrencies compete with existing money or gold. These cryptocurrencies are competing to replace fiat currency with a more global currency-crypto currency.
– An entirely global currency that permits people to own their money – without relying on national banks.
– A low fee for the transfer of funds across borders.
– It promises to offer financial stability to those living in countries with insecure currencies. Furthermore, approximately two- thirds of the global population has limited or no access to banking- bitcoin is altering that.
Ethereum is a Token
Ethereum vs does for contracts what bitcoin does for money. The innovation of ethereum lies in the fact that it lets you write smart contracts; that is mostly all agreements where someone can say if “so and so happens” then “123 will happen.”
– If Peter votes for a president, no one else can vote as Peter, his vote is official.
– When Peter signs his name on this document, Peter owns the car, and you do not own the car anymore.
– Until now we have made agreements that involve a signature at the end of a document. ethereum vividly develops this model as it is digital. It makes it so that evidence of a transaction will never vanish.
The main differences between ethereum vs bitcoin explained
– Bitcoin was programmed to work as a decentralized payment system which is peer to peer. Whereas the design of ethereum was made to work as a decentralized platform which operates smart contracts.
– The bitcoin system uses the C++ language of programming which is not diversified. Whereas ethereum utilizes the Turing Complete language system which has seven various programming languages – which is more flexible and diversified than the bitcoin system.
-Both cryptocurrencies utilize the process of mining – however, they have different rewarding procedures and limitations.
– Bitcoin systems are slow because they deal with solving complicated mathematical problems that ensure security but waste time and energy. On the other hand, because ethereum uses seven programming languages which are easy to use, it is faster and more flexible.
There are a lot of technical differences in the technologies that reinforce bitcoin and ethereum platforms. However, at this early stage, they may look the same. As these ventures grow and mature the difference will become more apparent.
Does Ethereum have any potential to overtake bitcoin?
In the last couple of months, bitcoin deteriorated consistently. However, it has also gained value more than 1000% in 12 to 16 months. On the other end, ethereum has gone down approximately 20% from its peak. It has also gone up more than 1000% in 14 to 16 months. Because of these facts, investors are looking into investing in Ethereum aswell. Hence the investigation on whether ethereum vs will overtake bitcoin.
The issue is:
Bitcoin is the innovator in the cryptocurrency market. However, if you compare ethereum vs bitcoin based on application- you will recognize that ethereum’s application is a lot stronger. This is another reason why investors predict ethereum’s increase in value.
The fact is that ethereum offers a decentralized processing platform. This guarantees that more people can earn ethereum only by loaning the processing power. Attention is also increasingly going to ethereum because ethereum mining is currently quite profitable.
Ethereum vs Bitcoin – Conclusion
The ethereum vs bitcoin relationship is quite complicated. Reason being that ethereum is commonly seen as the second cryptocurrency. If bitcoin does not gain more acceptance and adoption in the non-virtual world- ethereum will stand a chance to be the most valued cryptocurrency.