Bitcoin vs Ethereum – Compare both Cryptocurrencies on 5 major ParametersLast Updated Date: Nov 16, 2022
In this Bitcoin vs Ethereum battle, we’ll shed light on all the aspects, so you get a clear idea between these crypto-currency types.
Crypto-currency trading is emerging as the most profitable opportunity in the financial market. Especially Bitcoin and Ethereum are the popular options in the list.
But which currency is expected to outperform in future has been a long-lived subject of debate. People are still unclear whether they should invest in Bitcoin or Ethereum.
After all, the biggest hike in bitcoin’s prices has raised people’s expectancy from it. But, the consistent rising performance of the Ethereum is also impacting their investment decision.
No wonder, the mind-blowing performance of Ethereum proves it a strong competitor of Bitcoin. Still, there are lots of factors that make one best over another.
Bitcoin vs Ethereum – History
Bitcoin has been a popular digital currency in the world since its release in 2009. After all, Bitcoin is known as one of the oldest crypto-currency that is still on-demand in the financial market.
Thanks to Satoshi Nakamoto – the founder of Bitcoin who brought a unique method of transaction.
Moreover, it is also evolving as one of the most favorite investment options among traders. In the year 2020, bitcoin has experienced a big boom in its price.
That’s also the primary reason why people are increasingly investing in bitcoin rather than other crypto trading pairs.
On the other hand, if we talk about Ethereum, it is indeed a new player in the market. Originally created in 2015, due to amazing performance, Ethereum refers to as a strong competitor of Bitcoin.
Its prices have dramatically risen within a few years. Its impressive performance seems to overtake the previous records of Bitcoin.
Ethereum is also a decentralized digital currency. Just like bitcoin also runs on an open-ended software platform.
Most of its concepts and features are learned and copied from Bitcoin and presented with advancements.
It’s no surprise that these distinct yet similar features make this difference quite interesting.
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Bitcoin vs Ethereum – Technology used
Bitcoin relies on traditional Hashing Algorithm, also known as SHA-256, which is comparatively slower and a bit costly.
On the other hand, Ethereum relies on a cryptographic algorithm, also known as Ethash, which is relatively faster.
That’s why most people compare Bitcoin and Ethereum as Gold and Electricity. It is mainly because Ethereum is faster for its revolutionary technology.
Hence, it raises its demand across the financial and technical sector. On the other hand, Bitcoin is a bit expensive due to the traditional algorithm that also makes it a digital gold for traders.
Apart from that, both Bitcoin and Ethereum run on a blockchain and carry their own programming language.
Though ETH powers Ethereum that globally people use to make payments, hence, Ethereum utilization is twofold.
One can use it solely for the trading purpose as a crypto-trader or use it across their business and technical department to send and receive payments.
However, due to its rising demands and prices, bitcoin continues to evolve into a favourite choice among traders.
That’s how Ethereum and Bitcoin appear to be different in terms of technology because both satisfy different needs.
Compare Bitcoin & Ethereum – Mining
Miners play a crucial role in deciding the value of a crypto-currency. Though, Mining task in both Bitcoin and Ethereum is quite similar.
Miners solve some complicated computational problems. Whoever solves the issues and adds a block in the ‘blockchain’ receives a reward in the form of coins or Ether.
The Ethereum mining method is also called proof of stake in which miners have to show the number of coins they own.
The more coins mean the person will have more mining strength. However, it can be a bit complex for beginners.
If we talk about the earning potential, then miners can earn $200 per month for their mining task. On the other hand, the earning potential in Bitcoin mining is huge.
Though it can fluctuate over time, still miners can generate a big amount from Bitcoin mining. But we can’t forget that the mining task isn’t that easy as it sounds.
You will have to invest a huge amount on purchasing equipment to accomplish the mining task that is energy-consuming as well.
Also, it isn’t easy to rise as a beginner as lots of people are already actively engaged in the mining task. All these efforts are worth it in bitcoin because the reward is comparatively bigger.
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Bitcoin vs Ethereum – Fees or Charges
Fees for transaction in Bitcoin are more likely to grow higher with the growing relative security of the Bitcoin network.
However, higher fees would imply that short transactions will switch to other networks; else, it will turn expensive for them.
Only big transaction will be adopting the Bitcoin network due to enhanced security that Bitcoin will offer. At present, the fee is a thriving feature of bitcoin.
That’s why; people with lower budgets are taking distance from bitcoin and switching to some other no-fee or low-fees option such as Ethereum where you pay a comparatively lower fee for the transaction.
However, there is an added advantage in both Bitcoin and Ethereum that you can pay miners more money, so they concentrate more on your transaction.
However, big businesses and enterprises opt this method to bring swiftness in their ‘payment work.’
That’s how both bitcoin and ethereum are similar yet different due to their varying features that satisfy the specific needs of different audiences.
Ethereum is comparatively a cheaper option, whereas bitcoin is expensive. But it also makes it a higher profitable crypto-asset among traders.
Comparison of Bitcoin and Ethereum – Available Coins
If we solely talk about Bitcoin Network, already 18.5 million bitcoin out of 21 million total bitcoins have been mined.
On the other hand, ethereum has 100+ million ether supply in its circulation that is way more than Bitcoin, out of which only few Ether have been mined.
Now, this data provides us with a decent idea that Etherem has more coins available in its circulation that means opportunities are high.
But it doesn’t consider Ethereum the best option because even though Ethereum has a higher number of Ether in its circulation, still in terms of market capitalization, Ethereum is back in the last.
Market capitalization for Ethereum is around $28 billion only, whereas for bitcoin it is more than $110 billion.
It proves that in terms of market value, Bitcoin overtakes ethereum, which highlights bitcoin as a profitable option among for traders.
But we can’t forget that the consistent growth of Ethereum is also making headlines. Even experts predict that ethereum has considerable potential, and near in future it is likely to overtake bitcoin.
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Bitcoin vs Ethereum – Which One to Buy?
Bitcoin and Ethereum both crypto-currencies seem to be outperforming each other.
Businesses and enterprises are increasingly using Ethereum for its advanced algorithm and instant transaction system.
Yet in terms of market value, Bitcoin has gained a top rank. Also for big transactions, bitcoin is a highly favorable option.
Whereas, small and medium-size businesses have just started using Ethereum for transaction purpose.
Even though the market value of Ethereum is relatively lower, still its rising performance considers it a strong competitor of Bitcoin.
Both crypto-networks have known for the peer-to-peer transaction, and till now both have performed brilliantly in the market.
That’s why the ultimate decision whether bitcoin is better over ethereum or vice-versa is based entirely upto your choice.
Bitcoin is currently a top-performer if you seek crypto-trading advantage. But in future, ethereum is more likely to overtake bitcoin.
Till now, a big portion of bitcoin has been mined that makes it clear that Bitcoin value will continue to rise. Yet its higher transaction fee can be a drawback for the short transaction.
Still, traders can expect more from both bitcoin and ethereum as both crypto-currencies have a higher success rate in the crypto-market.
Bitcoin vs Ethereum – Conclusion
Ultimately, now you can make a well-informed decision and choose the best crypto-currency type that meets your specific needs.
For trading purposes, both bitcoin and ethereum appear to be dominating over other crypto-currencies in the market.
Ethereum is already advanced. Its past performance witnesses that it has achieved a lot within a short time if compared with Bitcoin.
On the other hand, due to its oldest position in the crypto-market, bitcoin continues to be a more reliable option.
Also, miners pay close attention to the bitcoin mining task due to high reward generation. Therefore, in the final words, we can say that based on the current performance bitcoin is more profitable.
Still, traders who are planning for a long-term investment can consider investing Ethereum. The consistently rising performance of ethereum makes it an attractive option.
Also, in the upcoming years, most people will switch to ethereum as bitcoin is going to become a more expensive option in the future.
Compared to other crypto-currency pairs, both bitcoin and ethereum seem to be more reliable and highly profitable.
Hence, the end decision is entirely based on your preferences. Both bitcoin and ethereum prove winning players in this review.
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