BITCOIN VS ETHEREUM: WHICH IS A SMART INVESTMENT?

Investment is one of the best ways to increase your profit level, and in recent times most people started to invest in cryptocurrencies. When we talk about cryptocurrency, the first thing that comes to mind is bitcoin, and after the bitcoin, Ethereum is the second-most popular cryptocurrency. Bitcoin Vs Ethereum both plays an important role but yet it shares some differences.

Get to know about Bitcoin and Ethereum:

BITCOIN VS ETHEREUM – Get to know about Bitcoin and Ethereum

When cryptocurrency has been introduced in the world, most people or businesses didn’t know the purpose of cryptocurrencies. The main goal of the cryptocurrency is to eliminate the need for the transaction that includes the brokerage fees and commissions. Also, the world is moving towards technology and digital money, so cryptocurrency is introduced to reduce complexity and uncertainty. 

A lot of cryptocurrencies have started to release, and till now there are more than 4,000 cryptocurrencies have been released. Of all the cryptocurrencies, bitcoin and ethereum have become popular because of their advanced features. Both ethereum and bitcoin are digital currencies, still, they share many differences. (We are at war: Bitcoin vs Ethereum)

In bitcoin vs ethereum, bitcoin will occupy the first place, and also it grabs higher attention from large investors. Many companies include bitcoin in their mode of transaction, and also they are using bitcoin when it comes to payment. When compared to the other coins, bitcoins will always remain stable in the volatile market. Using bitcoin, you can transfer the values from anywhere in the world, and it is considered the payment network. And the other fact is that this largest cryptocurrency will come with a limited supply.  

In the cryptocurrency market, not only bitcoin is ruling the entire market, the other most popular coin is ethereum. The purpose of the coin is to create the infrastructure for the internet, and this is more utility-based. Ethereum is one of the first networks that enable smarter contracts, so there was more development in the area of networks. The main goal of ethereum is to diversify the investment and in the cryptocurrency world, it creates a drastic change within months or days. Many investors believed that one day the ethereum will increase its value over time, and it would be a better option to hold and buy ethereum. (We are at war: Bitcoin vs Ethereum)

Bitcoin Vs Ethereum:

As of the title “Bitcoin vs Ethereum – TOWARDS THE BEST AND SMART INVESTMENT” there is a battle. When cryptocurrency has introduced in the world, the first coin that ruled the digital world is Bitcoin. After Bitcoin, the other that became popular in a shorter period is Ethereum. Other than these two coins, so many other coins have been released in the cryptocurrency world, but the improvement developed in these two coins has never been limited. 

When we talk about bitcoin, the performance, security, and speed of transactions make this more popular among people. In the same way, Ethereum is also special in its way as the transaction will take faster and the time consumed will be in seconds. But the two coins share major differences in technical ways, and also the networks shared by the coins are different. 

Yet Bitcoin and ethereum share some similar features, and the main purpose of the coin is to use these coins while doing online exchanges, and also even you can store them in different cryptocurrency wallets. But these coins are not issued or regulated by the central or any other higher authorities. There are a lot of other things to get to know about the coin, and this article will help you to find bitcoin vs ethereum in detail. 

Features:

Bitcoin and Ethereum are considered the two most prominent digital assets, and when you enter the cryptocurrency world, the first two coin names that come into pop-up are bitcoin and ethereum. Even though the coins belong to the same world, still both shares different purpose and features. So, here are the features that you should know before investing in these two coins. 

Purpose

The first and most important point in the list of features is that both coins have a different purpose. When we heard the name called bitcoin, we all think that it belongs to the cryptocurrency, but the truth is it is not. Bitcoin was mainly introduced to make transactions without the help of a third party. Also, you can carry the transaction across the entire network. 

When it comes to the ethereum, it is a network, and even it is considered the currency. The main purpose of the ethereum is to purchase the products and services that are available in the ethereum network. This is the reason behind ethereum to enable smarter contracts, and even it will allow the developers to create applications on its network. 

Now, you will be clear that both bitcoin and ethereum will share two different fulfilling roles. 

Market value

Bitcoin and Ethereum are considered the gold and silver of the cryptocurrency world, and both coins have seen a huge spike for the past years. When we take bitcoin, many of the celebrity endorsements have promoted this coin but in 2017, the U.S. Securities Exchange Commission mentioned that promoting the bitcoin will come under an illegal act.  

On the other hand, ethereum didn’t come across as such a fan endorsement act, and the success of the coin is transparent. It didn’t receive any push from the outsiders, so it was considered the most popular. 

Block-chain technology

A blockchain is considered the technology in which the transactions are stored with the crypto address, and also the person’s name will be anonymous. If the person’s name got exposed, then the entire history of the person will be exposed. 

The bitcoin blockchain is mostly composed of the database of accounts, and there will certainly amount of currency stored in each. Ethereum block-chain technology will consist of a sophisticated structure, and even it is capable of storing the code. When compared to both block-chain technologies, bitcoin will come first as it used different addresses for every transaction so the payment can be made secure. 

Transaction

When we talk about the transaction network, both bitcoin and ethereum are powered by the principle of distributed ledgers and cryptography. Even though both share the same network still are different in technical ways. In a bitcoin transaction, the network comprises data, and also every transaction will take notes. On the other hand, the ethereum network consists of some executable codes for the transactions. 

Also, the block time taken by both the coins will be different. Bitcoin is mainly considered as the alternative for national currencies, and ethereum was used as a platform.  

Key Differences: (Bitcoin vs Ethereum)

Now, you will be clear that the bitcoin and ethereum are two different coins and it carries some different features. Ethereum was designed not to create competition for the bitcoins, but it is mainly created to use as a De-Fi platform. But no one has expected that Ethereum will gain such popularity, as within a shorter period it became one of the second largest cryptocurrencies in the world. 

Bitcoin Vs Ethereum share a lot of differences, but here are the three key differences that everyone should know to make their investment better. 

Currency Vs Platform

Bitcoin is mainly designed to make an alternative option for fiat currencies, and it is considered a pure cryptocurrency. The bitcoins are primarily used as a medium of exchange and store of value. It is like a commodity that is similar to gold. 

Whereas, Ethereum is designed as a platform, and it is mainly used to run the application and program contracts through its currency. Ethereum is similar to the Apple Store or Google Play Store, and it is considered a blockchain platform.  Bitcoin comes under the category of digital currency, and Ethereum will be considered as a platform. 

Security Vs Speed

Everyone will think that in the world of cryptocurrency, bitcoin will play a prominent role, and also it would be better when compared with ethereum. But there are certain things in which bitcoin is slower than ethereum. 

The first thing is that the block time, Ethereum will take only 14 seconds and the block time of bitcoin will be 10 minutes. Also, the transaction of bitcoin will be slower than the ethereum, as the bitcoin will take 40 minutes for a transaction, and surprisingly the ethereum will take only 5 minutes to complete the transaction. But you should know why the transaction of bitcoin is slow; as the reason is its coding language and its priority is to promote a secure payment.  

Finite Vs Infinite supply

In bitcoin, has a finite supply of 21,000 and after this supply, it will be over. Once the investors have unlocked this number of bitcoins, then the supply will get exhausted. So, the investors treat the bitcoin as the store of value, and it is an investment made against the inflations. But ethereum will offer an infinite number of supplies, and the amount of ethereum will be released each year. Even it is increasing every year at an unpredictable rate. 

What to choose to make a smart and best investment?

BITCOIN VS ETHEREUM – What to choose to make a smart and best investment?

If you are planning to invest in cryptocurrencies then it would be a great start, but before that, you need to have a complete understanding of the cryptocurrencies. We all know that bitcoin and ethereum hold a special place in the world of cryptocurrencies. The main goal of the investment is to have long-term growth.

Long-term growth is possible in bitcoin and ethereum if bitcoin has been widely accepted as a form of currency, or if ethereum becomes the most standard and established network. In the terms of technology, newer and more efficient algorithms can replace bitcoin or ethereum.

But in the last few years, the value of bitcoin and ethereum has gone down, and most people will invest in cryptocurrencies in the hope that they can sell them for bigger values. There is one point as the world is moving towards the digital market, so in the future, the value of the coins may increase over time. 

If you ask me which cryptocurrency we have to invest, then bitcoin is widely used by most businesses, and ethereum is supporting various networks and applications. But both carry some risks, so before investing make a proper analysis (Bitcoin vs Ethereum).

The future of Bitcoin Vs Ethereum:

We don’t know what values both bitcoin and ethereum will hold in the future, but as of now, bitcoin has seen major price fluctuation in the last couple of months. In the same way, ethereum has all the potential to become the number one digital currency. The bitcoin market has faced a loss, as before the starting of 2020 the market value has reached 40% from 70%. But still, bitcoin holds a special place because of the market share. And on the other hand, some people give ethereum first place only because of the block-chain based financial services and upgrade in technology. 

Most investors feel that as the world is moving towards the digital currency and crypto market, so bitcoin will automatically lose its number one place in the future as the other cryptocurrency with better technology and features will take the number one place. But other people feel that it is not an easy job to replace bitcoin even though ethereum consists of innovation and most people developing interest in it. 

Ethereum is currently working on a major shift and also it uses lower energy than bitcoin. (Bitcoin vs Ethereum) So, maybe in the future, more investors can move towards the ethereum. 

Bottom Line: ( Bitcoin vs Ethereum – TOWARDS THE BEST )

BITCOIN VS ETHEREUM – TOWARDS THE BEST AND SMART INVESTMENT - Bottom line

In Bitcoin Vs Ethereum, bitcoin is considered the leader of the cryptocurrency, and the coin has more advantages than Ethereum. Also, bitcoin has gained brand recognition as it was the first coin introduced in the digital currency market. Likewise, Ethereum involves higher risk but it comes with greater potential rewards. But one thing to remember is that both Bitcoin and Ethereum are historically volatile and it would be better to invest in the different cryptocurrencies rather than concentrating on one crypto asset.

In my opinion, people should not put their lifesaving on the crypto market; however, there are some actionable ways that you can potentially minimize the risk and increase your profit. I believe one day in this battle (Bitcoin vs Ethereum)  ETH will flip BTC. Do not hesitate to reach us here if you need help– Reza Abbaszadeh