In this guide we will be looking at the difference between Ethereum and Bitcoin, their uses and benefits and which one will perform better in a given scenario. We will discuss some potential future use cases for these blockchains and the following topics:
- The differences between the two
- Why Ethereum and Bitcoin differ
- The uses and benefits of Bitcoin and Ethereum
- Potential future uses and uses we can see for them
So without further ado, let’s start looking at these two cryptocurrencies, to see which one is better, and why they have been rising and rising in price.
Bitcoin is one of the oldest cryptocurrencies on the market. While it’s a pretty simple and clean platform, there is still a tonne of potential on the block hain. However, there is currently a lot of competition in the market place for Bitcoin, with new cryptocurrencies popping up every year. It is the aim of Ethereum to take Bitcoin’s place and become the new Bitcoin. So let’s take a look at Bitcoin and Ethereum to see which one is the better option for you.
What is Bitcoin?
Bitcoin is a digital currency created in 2008. In 2011, Satoshi Nakamoto released a software update. With this update, people could buy and sell digital currencies online, as well as make online payments. Since its invention, it has become the number one cryptocurrency in the world, with over 1,400 different types of cryptocurrency. Bitcoin have some major ups and downs in price.
What is Ethereum?
Ethereum’s purpose is to be the next generation cryptocurrency. It was released in 2014, and quickly became the second most used digital currency in the world, with almost 30% of all digital currency trading in 2021 is Ethereum. As well as being used in trading, Ethereum is used in many different applications, including smart contracts. Smart contracts are useful for everything from buying a new car to sending money across the globe. So the benefits of using Ethereum are endless. Like Bitcoin, Ethereum has gone through some ups and downs in value. But is currently on the up, which is great news for any Ethereans out there.
What are the differences between Ethereum and Bitcoin?
One major difference between Bitcoin and Ethereum is that Bitcoin is a digital currency, while Ethereum is a smart contract platform. With Ethereum, it’s not just about being a currency, it’s also about using blockchain technology and smart contracts, making it the next generation cryptocurrency. There’s also another huge difference between the two: Ethereum has gone through ups and downs in value.
Ethereum has seen a massive price drop in value recently, reaching almost $500 per ETH (Ethereum’s current market value) back in May. However, it is now rising again, reaching over $700 again in January 2019.
What are the pros of using Ethereum and Bitcoin?
Both Bitcoin and Ethereum have their advantages and disadvantages. The biggest pros are:
A decentralized currencies: A decentralized currency makes it impossible for anyone to shut the whole thing down, or manipulate the value of the currency. With that said, decentralized currencies are more risky to use because there is no central governing body that backs them, and they are not controlled by any bank or governing body.
Ethereum’s Blockchain: Like Bitcoin, Ethereum uses blockchain technology. It means that every transaction is run across the whole network. So the performance is very fast.
Dependable and secure: If a payment for a car or a plane ticket is being processed through Bitcoin or Ethereum, it is impossible to change the price because it’s stored on blockchain technology, which makes it impossible to manipulate.
Who Uses Ethereum and Bitcoin?
As of 2021, Bitcoin and Ethereum are still the most popular cryptocurrencies, despite the other cryptocurrencies were created and released since. Bitcoin and Ethereum have a massive user base, and that’s why they’re the most common and popular.
Bitcoin is known as the pioneer of the cryptocurrency market. Ethereum is one of the most commonly used coins too. They are both used as currency. There are a lot of other cryptocurrencies, like Monero, Litecoin and others. But we will take a look at them in other articles.
As cryptocurrencies become more popular and their value continues to rise, people are using them to do more than just save money.
In 2022, there will be more innovation and new uses for blockchain and cryptocurrencies. Whether you are interested in cryptocurrency, blockchain, or maybe you want to use Bitcoin or Ethereum to make your first crypto-transaction, the best thing you can do is to educate yourself about cryptocurrencies and learn how to use them.