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Bitcoin Vs. Ethereum: Which is Better to Buy

Bitcoin Vs. Ethereum: Which is Better to Buy

Overview

Bitcoin and Ethereum are leading digital currencies that are traded online through cryptocurrency exchanges; they can be stored in different types of cryptocurrency wallets. Both Ethereum and Bitcoin are similar in that they are decentralized, which means that they are not regulated or issued by any monetary authority or central bank. Both the currencies use blockchain, the distributed ledger technology, and are the two most popular cryptocurrencies by market cap. In this article, we will look into the comparison between Bitcoin and Ethereum.

About Bitcoin

The largest cryptocurrency by market cap currently is bitcoin, and no other cryptocurrency has come close to it. Moreover, it has a limited supply and is restricted to 21 million Bitcoins; As of today, the price of 1 Bitcoin is 59,666 USD; the total market value of digital currencies has moved past $2 trillion due to the surge in institutional demand. Bitcoin is considered a decentralized currency where the user can buy, sell, and trade directly without the need for a bank or intermediaries. Bitcoin is a blockchain-based cryptocurrency that shares some properties with gold. Crypto investors like Billionaire Mike Novogratz have called bitcoin “digital gold” because of its use as a store of value, and more and more people are beginning to want it as some portion of their portfolio. 

About Ethereum

Ethereum is different from Bitcoin, and it has different goals and applications. It operates as a decentralized network where applications can be built on the platform. Ethereum was launched in 2015, and it is a blockchain-based, open-source, decentralized software, and it has its own cryptocurrency known as “Ether.” It enables distributed applications (dApps) and smart contracts to be built and run without interference from any third party. It is not only a programming language but also a platform that runs on a blockchain. Ether is used mainly for two purposes—it is traded as a digital currency on exchanges in the same fashion as other cryptocurrencies, and it is used on the Ethereum network to run applications. 

Bitcoin Vs. Ethereum: Key Differences

  • Unlike Bitcoin, the main objective of Ethereum is not to be a substitute for any monetary system but to monetize and facilitate the operation of smart contracts and dApps (decentralized application) on its platform.
  • Ether was intended to complement rather than compete with bitcoin, but it has nonetheless emerged as a competitor on cryptocurrency exchanges.
  • The ether ecosystem is much smaller than Bitcoin’s: as of 2021, Ethereum’s market cap is $250 billion, while Bitcoin’s is nearly 4 times that at $1 trillion.
  • Both Bitcoin and Ethereum’s networks are powered by cryptography and distributed ledger technology. The Ethereum transaction network contains executable code, while the Bitcoin network contains only nodes.
  • Bitcoin and ethereum networks are different in several aspects.; Bitcoin was developed as an alternative for currencies and was developed as a medium of exchange and store of value. On the other hand, Ethereum was developed as a platform for facilitating immutable smart contracts and dAapps through its currency.
  • Ethereum is one of the use cases for blockchain that supports the  Bitcoin network and should not compete with it in theory. But Ethereum’s popularity has pushed it to compete with other digital currencies.

Should you buy Bitcoin or Ethereum?

  • Bitcoin trades flexibility for security, while Ethereum trades security for flexibility.
  • Both are valuable and worth paying for, and both tradeoffs are worth making based on the respective rewards.
  • Both are great, complementary networks. You can use Bitcoin to secure assets that are tokenized and traded on Ethereum. And BTC can be more useful to holders if you can take loans against it using Ethereum’s DeFi protocols.
  • Both Bitcoin and Ethereum operate as complementary protocols underlying a multi-trillion dollar Internet of value. So, Both can win.
  • Right now, in April 2021, experts like Teeka Tiwari recommend investing in Ethereum, considering that Bitcoin has already reached its all-time high.

Final Thoughts

Although Ethereum and Bitcoin may have similar aspects, the two currencies are very

different in regards to the use and future of the two digital assets. While the future of Ethereum is uncertain as it is for all cryptocurrencies, it is an attractive investment opportunity to capture the potential gains of the technology. As for Bitcoin, there is still room for mass adoption, but its price will not experience the volatility it did in the beginning years. So if you are looking to earn profit from Bitcoin then Bitcoin Profit Platform is the perfect place for you. Check out Bitcoin Profit Review to know more about this innovative platform.

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