There is a massive fanbase of cryptocurrencies as everyone wants to invest in them. But most people don’t have proper knowledge about digital currencies and their work. There are numerous cryptocurrencies in the market, but Bitcoin and Ethereum are two of the most noticeable ones. If you want to make money with bitcoin trading, you can register and get rich. You can read the following paragraphs to learn different aspects of both cryptocurrencies and make a better investment.
Comparing the basics
There are numerous aspects that make bitcoin and Ethereum differ from each other, but before we learn about the complex aspects, it is important to know the primary differences between the two top cryptocurrencies. So, some of the basic points of differences between Ethereum and Bitcoin are as follows;
First and foremost, bitcoin was created by Satoshi Nakamoto, and it was launched in the year 2009. It was the first cryptocurrency ever introduced to the world and also the first one which was based on blockchain technology.
It was created to solve the issues faced while using traditional currencies to do transactions.
It is a virtual cryptocurrency that allows users to do transactions without involving any third party. There is no need to take approval from any bank or financial institution to make a bitcoin transaction.
It can be used as an alternative to fiat currencies such as USD, YEN, EUR, etc., as it is accepted all over the world as a common medium of exchange.
Bitcoin offers excellent liquidity to the users as you can sell bitcoins over the Internet anytime and anywhere and get them converted into local currency with great ease.
Another significant aspect of bitcoin is that it completes transactions within a few minutes, which is a lot quicker than other traditional payment methods.
Ethereum was launched in the year 2015, and because of its use of Blockchain, it got quite popular with the name of ‘Blockchain 2.0’.
All the transactions done over Ethereum are programmed through Smart contracts, which are the major aspects of Ethereum.
Ethereum also removes the role of any third party as it works through Smart contracts, which allows users to make transactions and exchanges over the platform without intermediaries.
Ethereum is also a decentralized platform for app development. It allows users to develop smart-contract apps better known as dApps.
Ethereum is also highly liquid like its competitor bitcoin.
One of the major differences between Ethereum and Bitcoin is that Ethereum completes a transaction within few seconds, which makes it quicker than bitcoin.
What about the availability of both cryptocurrencies?
To gain a better understanding of the difference between Bitcoin and Ethereum, you must know the availability of tokens with both currencies. If we talk about bitcoin, they are created through a process known as bitcoin mining. The supply of bitcoin is limited as only 21 million bitcoins can ever be mined. And out of that number, over 18 million bitcoins have already been mined. There is a vast network of bitcoin miners who mine a bitcoin every ten minutes. According to some reports, all the bitcoins will be mined by the year 2140.
On the other hand, if we talk about the availability of Ethereum, there is no clear or accurate data available. The estimated number of Ethereum circulating in the market is around 96,815,798. But there is no fixed number of Ethereum that can give a clear idea about its availability.
Variety of uses
Another basic point of difference between bitcoin and Ether is their purpose or use. Bitcoin is mainly used for sending and receiving funds. You can use bitcoins to purchase goods as well as services. Moreover, the massive market value of bitcoin also makes it an excellent investment. So, you can buy and hold bitcoins as an investment. Most of the top companies and online stores accept bitcoins as a common medium of exchange.
Ethereum is also a cryptocurrency, but it is not preferred to buy goods and services. In the current scenario, Ether is used by the developers as a platform to developed applications. With the increasing popularity of Ether among app developers, its uses will surely diversify in the future, and Ethereum may be used for several other purposes.