Table of Contents
- Ethereum Vs Bitcoin: Which is the Better Buy?
- An Overview of Ethereum Vs Bitcoin
- There have also been some questions concerning which is better: Bitcoin or Ethereum? Before that, it is important to note the actual differences between these two digital currencies.
- TECHNOLOGY – Ethereum Vs Bitcoin
- Monetary Supply – Ethereum Vs Bitcoin
Ethereum Vs Bitcoin: Which is the Better Buy?
In today’s crypto currency industry, two digital currencies have been making wave for quite some time. These crypto currencies are Bitcoin and Ethereum. Bitcoin, which happens to be the most popular, is actually the first crypto currency that started the digital currency market. Ethereum Vs Bitcoin, Ethereum price, eth price, mining Ethereum, eth used, Ethereum wallet, and Bitcoin and Ethereum news are all in which everybody is interested nowadays. After its launch and signs of it being profitable, different people created several other digital currencies. Among these digital currencies created is Ethereum, which launched in the year 2015.
Since its launch, this crypto currency has become popular and profitable. With a growing user base, Ethereum seems to have a potential of being a strong competitor that will likely compete with its leader, Bitcoin, in the near future. However, it is important to understand the concept of these crypto currencies.
An Overview of Ethereum Vs Bitcoin
Bitcoin is a global crypto currency and digital system. It is known as the first decentralized digital currency because it works without being controlled by any central authority. An unidentified programmer or group of programmers with the pseudonym Satoshi Nakamoto created Bitcoin. In 2009, Bitcoin was launched as open source software, and it operates using a peer-to-peer system. Public network nodes verify transactions, and these transactions are recorded in a decentralized public ledger known as a Blockchain.
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Bitcoin can be used for various transaction purposes which includes trading Bitcoins (This is the buying and selling of Bitcoin), using Bitcoins to pay for goods and services, sending Bitcoins to people all over the world and so much more. Crypto currency users can rely on Bitcoin because it provides users the opportunity to carry out their transactions yet being anonymous. In addition, the fees charged are quite low hence, it happens to be a good choice for most people.
Apart from Bitcoin, we also have Ethereum, which happens to be a popular choice among crypto currency users. Ethereum just came into the crypto currency world a few years ago yet; it has managed to achieve a great feat in the digital currency world.
Ethereum is an open source and a decentralized digital currency. Ethereum was suggested in 2013 by a cryptocurrency researcher and developer, Vitalik Buterin. On 30th of July 2015, Ethereum went live. It is built on a block chain distributing system that comes with a feature known as ‘Smart Contract.’ Ethereum uses a decentralized Turing virtual machine for the execution of scripts with the use of International public nodes. This machine is known as the Ethereum Virtual Machine (EVM). The Ethereum crypto currency provides its users the ability to make use of the digital currency token known as ‘ether.’ This token can be transferred between accounts, and it is used to compensate participant nodes for the computation carried out. The Ethereum smart feature allows users to do business with people they do not know.
For some time now, Ethereum has experienced a constant increase in terms of popularity among crypto currency users.
There have also been some questions concerning which is better: Bitcoin or Ethereum? Before that, it is important to note the actual differences between these two digital currencies.
- Block TimeIn the case of the crypto currencies block time, they both have their own pre-set time. Bitcoin has a preset time of around ten minutes (10 minutes) while Ethereum has its pre-set block time of twelve seconds (12 seconds). This means Ethereum is faster with the confirmation of transactions than Bitcoin. Ethereum’s fast time is possible with the help of its GHOST protocol.
- Ethereum makes use of Turing complete internal code and Turing complete programming language, which simply means that anything can be easy, calculated using substantial computing power and sufficient time. On the other hand, Bitcoin does not have this feature.
- Another difference is that Ethereum and Bitcoin make use of different hashing algorithms. Ethereum uses what is called Ethash algorithm while Bitcoin makes use of SHA 256 algorithm that tends to produce its number in a hexadecimal form.
- Bitcoin makes use of the regular pool mining structure while Ethereum uses the GHOST Protocol.
- Another difference is the fact that the number of coins mined under Bitcoin is more than Ethereum. Hence, in terms of monetary quantity, Bitcoin has an edge due to its number of available coins.
The above are some of the differences between Bitcoin and Ethereum. With these differences, it is important to compare these crypto currencies in other to know which is better.
TECHNOLOGY – Ethereum Vs Bitcoin
In terms of technology, Bitcoin and Ethereum have their own unique features. While Bitcoin could be seen as the leader of all crypto currencies, its technology still needs to be improved. Presently, Ethereum offers some exciting features, which are likely to captivate the interest of its users. For instance, Ethereum offers a feature called Smart Contracts. When it comes to technology, one would say that Bitcoin engineered most of the features but some of the features it engineered were simply improved, and this is what Ethereum did in the case of its Smart Contract.
Bitcoin started out by allowing users to transfer value from one person to the other with its network but unfortunately, Bitcoin happens to have a limitation concerning the use of the currency. However, what Ethereum did was to work on the weak point of Bitcoin to help them come out with advanced technology. Ethereum substituted Bitcoin’s restrictive language with a flexible one. This flexible language is known as Turing complete; it allows Ethereum developers to write out their own programs of their choice. With this, it enables the developers to structure their own smart contracts. The language also enables a broader group of computational information. With Ethereum’s smart contract features, it can:
- Regulate the agreements between Ether users.
- Perform as a multi signature account in other to enable the funds to be spent when a set of people have an agreement.
- Keep data of several items which include; Application information, membership information,
In terms of technology, Ethereum has the edge over Bitcoin, but despite this, Bitcoin has more users than its counterpart. One thing to note is that there is definitely a possibility for the Bitcoin technological system to be upgraded and if it is done, there are chances that Bitcoin will likely reclaim its technological spot from Ethereum.
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Monetary Supply – Ethereum Vs Bitcoin
When comparing Bitcoin and Ethereum, it is vital to look at the number of available coins. In the case of Bitcoin, this digital currency has a limited amount of Bitcoins that will be generated. Due to this, Bitcoin is scarce, and this has helped with the steady increase in its value. In the case of Ethereum, it does not have a limit to the number of coins that will ever be generated, and this has contributed to it being an inflationary currency. For now, no one knows how many Ethereum coins will be in circulation.
Presently, this may not seem to be an important issue, but over time it will likely become an issue as it may lead to confusion concerning the availability of the monetary supply. On the other hand, Bitcoin happens to have an edge. Unlike Ethereum who has millions of coins in circulation with more of it being mined every day, Bitcoin happens to be different. Bitcoin has a limitation of about twenty-one (21) million BTC. This means that the number of Bitcoins that will be mined throughout its existence will not exceed 21 million. This limitation helps to give its users a clear understanding concerning its available supply. Therefore, in terms of monetary supply, Bitcoin has the edge over Ethereum.
It is evident that these two cryptocurrencies both have their own unique selling points, which sets them apart. In the case of which of them is better; Ethereum seems to have a bright future ahead of it and Bitcoin, on the other hand, is already making waves by achieving certain feats that no other cryptocurrency has achieved. In addition, we observed that if there is a fall in the Bitcoin price, it tends to affect the price value of other cryptocurrencies including Ethereum. With this, there is no doubt that Bitcoin continues to lead the pack of all other digital currencies in the cryptocurrency industry.
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