The Ethereum vs Bitcoin situation managed to divide the online trading community into 2 groups. For example, the traders who support Bitcoin claim that its main advantage is the fact that when using its exchange platform they don’t need to interact with a middleman in terms of financial transactions. On the other hand, people who are fond of the Ethereum blockchain claim to prefer it due to the fact it offers smart contracts as well as because of its ability to serve as a base platform which is used for the development of advanced crypto exchange apps.
The Significance of Bitcoin & Ethereum in The Cryptocurrency Field
To be honest, when you understand how cryptocurrency works, we have to admit that both of these cryptocurrencies are really useful and properly-working in their respective fields. They definitely manage to follow the main purpose they have been created for. Now, we are going to devote some time to reveal the main differences between them.
The Bitcoin has a limited supply, meaning that the amount if its token is limited (21million in total). Ethererium is inflationary which means that its tokens (Ether) are unlimited in their amount. According to financial specialists over 18 million units of it get dispersed every single year. Another interesting fact is that in the near future Bitcoin mining will become impossible and useless as its total amount of tokens will be exhausted in the near decades.
Our research also managed to reveal that Bitcoin generates new tokens every couple of minutes. This is the required time for the new block of the chain to be completed. In order for this to happen, a blockchain miner pro should start solving difficult mathematical puzzles. After they manage to solve them, new tokens of the Bitcoin cryptocurrency become available. In comparison, Etereum coins are generated every 10-20 seconds.
Another great difference between Ethereum and Bitcoin is not just the cryptocurrency exchange rates, but also the fact that while Bitcoin is a cryptocurrency, Ether is a crypto token. This means that Bitcoin could serve as a fiat currency while the other offers to its user the possibility to sign smart contracts.
The Significance of Ethereum & Bitcoin in The Market
If you follow closely Altcoin news, you probably know that the technology itself behind the cryptocurrency phenomenon is what changed the world. But there is more. We already mentioned the fact that while the Bitcoin is a real cryptocurrency, the other is a token. It was already mentioned that while one of the two crypto giants is a full-time cryptocurrency, the other is a token. Now, let’s take a look at the main features of both cryptocurrencies and separate them into 2 sections:
- – No Need for Intermediary Institutions.
- – Low Fees for Transactions;
- – Fast International Transfers;
- – Its Users Are Free and Independent Financially;
- – Financial Safety for Users From Countries with Unstable Currency;
The Ethereum’s Main Features:
- – It Allows Users to Develop Various Applications;
- – No Need of Crowd-Funding Campaigns;
- – Offers Smart Contracts That are Freely Accessible;
- – Official Appliance and Recognition of Smart Contracts;
Currently, you can use Bitcoin in order to buy almost whatever you want. For example, if you want, you can even buy space travel tickets. The other advantage of this digital currency is the fact that the Bitcoin platform makes sure to keep its value safe and secure. In comparison, the Ethereum’s blockchain platform is mainly used for the creation of dApps (decentralized applications). Also, the main goal of the first cryptocurrency was to replace the fiat currencies, the latter’s smart contracts can be used for ownership or voting exchange.
Main Specifics of The Crypto Coins
Here, we would like to mention that in our opinion If Bitcoin and Ethereum become one cryptocurrency, this would be the perfect combination. The reason is that both of them offer smart contracts and both of them can serve as a reliable and advanced piece of online storage and transaction software. But let’s go back to the reality. Facts are that the 2 cryptocurrencies manage to complete each other.
If you are wondering which cryptocurrency to invest in we have to tell you that no matter which one you choose, you won’t make a mistake. You can even invest in both of them in order to start generating significant daily results. Of course, everyone knows that the average Bitcoin price is much higher, however, Ethereum also has stable positions on the market with the tendency for its price to continue increasing.
This means that you can buy a certain amount of the crypto tokens and just wait for its price to get higher. Then, you can sell them in order to generate plausible trading results thanks to the favorable cryptocurrency exchange rate. It would be harder to achieve this with Bitcoin as its price is really high, however, you can start with fractions of the token, but not the whole unit.
Bitcoin is still the leader when it comes to the biggest cryptocurrency by market cap, however, most of the users prefer Ethereum thanks to its incredibly fast transaction speed. It takes literally a couple of seconds for a transaction to be sent and received respectively. Official statistics also confirm this by stating that for 2017 more transactions were made with Ethereum rather than with Bitcoin.
Now, we would like to provide our regular readers with some of the most important differences between the 1st and the 2nd cryptocurrencies:
- – Bitcoin is a Cryptocurrency while Ethereum is an Application Blockchain Platform;
- – The Transaction Time of Ethereum is much faster that of Bitcoin (10 seconds compared to 10 minutes);
- – ETH Uses Smart Contracts;
- – The Bitcoin Price is Much Higher;
- – The Transactions’ History with Bitcoin is Accessible by 3rd Parties, While Ethereum Utilizes Safe Encryption Protocols;
- – Ethereum Has Lower Transaction Fees;
- – Currently, Bitcoin Has a Holding Value. The Ethereum Has a Spending Value.
It is Up to You to Decide Which is The Best Cryptocurrency to Invest in 2018
No one could give you the perfect advice in terms of which cryptocurrency to invest in. It is up to the investor to make this decision by evaluating the advantages and disadvantages of the various cryptocurrencies. For example, Bitcoin would suit best to the crypto online investors who are willing to invest only in the most successful cryptocurrency.
On the other hand, the Ether tokens are a great choice for traders who are willing to improve their personal software development skills, create a new application.
Finally, you can choose to trade with various Altcoins. If you are not experienced trader, we advise you to sign up for a legit and trustworthy crypto trading platform. It will make sure that you will achieve significant success in this lucrative trading sector. But be careful, there are many scam trading platforms out there so you should be able to make a difference between them and the legit solution. In this context, we advise you to read product reviews to get the info you need.
Hello, I am Collin Tyusm. I am a Forex blogger. I have created my blog, because I want to help people learn more about Forex & CFD Trading Software and Bots.