Bitcoin vs Ethereum

Bitcoin vs Ethereum has emerged as the most expensive cryptocurrencies in the digital sphere

In the digital world, cryptocurrencies have emerged as a major disruption after artificial intelligence and other disruptive technologies. With the support of a blockchain network, these distributed ledgers implement a distributed network of computers to support digital tokens like Bitcoin and Ethereum. They are not controlled by any central authority, making them resistant to government regulations and exploitations. Bitcoin vs Ethereum has emerged as the most expensive cryptocurrencies in the digital sphere that is highly adopted by investors.

Since its inception in 2009, Bitcoin is seen as the top cryptocurrency in the virtual currency sphere. ETH joined the race later on and both Bitcoin vs Ethereum became the most adopted digital tokens. Experts often say that ‘Bitcoin is the digital gold while Ethereum is the digital universe’. It clearly represents their stance in the virtual ecosystem. While Bitcoin technology is limited to payments and scarcity, Ethereum goes way beyond that and entertains the investors by creating a replacement for the traditional financial functions. When it comes to market performance and price fluctuations, Bitcoin vs Ethereum are siblings in that. Although Bitcoin’s price is way beyond Ethereum’s value, they both follow similar twists and turns. Whenever Bitcoin hits a record high, Ethereum also gets ready to go on a price rally. Even during the recent Bitcoin rally when the digital token touched US$68,000, Ethereum was quick to reach its all-time high of US$4,800. Therefore, in this article, we explore the similarities and differences between Bitcoin vs Ethereum and which one has the potential to rule the future of cryptocurrencies.

The History of Bitcoin and Ethereum

Bitcoin was created in 2009 by an anonymous person or a group called ‘Satoshi Nakamoto’. Satoshi released a Bitcoin whitepaper with all its functionalities mentioned in it. Although BTC was not the first disruption to mention blockchain, it became the first model to successfully implement the technology in its working systems. Bitcoin is synonymous with the cryptocurrency market itself. It is primarily a store of value and is often used as a medium of exchange.

Ethereum platform often oversteps its digital currency, ETH, for its excellent features. While Ethereum blockchain gains value, ETH coins eventually gain traction and adoption. Its ability to create smart contracts and high resistance to censorship and centralized malice makes the Ethereum network very special. Ethereum was launched in 2015 following the success of Bitcoin. Most of its functionalities replicate BTC.

Features of Bitcoin vs Ethereum

With a market capitalization of US$1 trillion, Bitcoin leads the cryptocurrency market that is valued at US$3 trillion. However, even its close rival Ethereum is standing at US$450 billion in market capitalization, which is roughly half of what BTC holds. Let’s explore what is driving Bitcoin price through the roof.

  • Institutional investors are lining up to give a try on Bitcoin. Most of them fear that they shouldn’t be late to board the Bitcoin bus. On the other hand, Bitcoin ETF’s debut in NYSE has also made many go berserk over the BTC’s extended features.
  • Although Bitcoin is volatile, it is one of the stable cryptocurrencies in the digital currency sphere. With a long history, crypto investors have a big belief in BTC.
  • Bitcoin’s supply limit of 21 million gives more value to the cryptocurrency. The limit creates inflation and drives the price towards new highs.

On the other hand, the Ethereum coin and the platform is doing well in the cryptocurrency market. Some of the features that are driving ETH towards new all-time highs are listed as follows.

  • While Bitcoin is solely focused on the cryptocurrency its trades, Ethereum has other options and goals with its decentralized network. It can help build decentralized applications and smart contracts.
  • Recent ETH updates from Proof of Work to Proof of Stake to cut down transactions fees and extend its functionalities have impressed investors.

Choosing the Best Cryptocurrency

Many crypto investors usually opt for 1:1 Bitcoin vs Etheruem investments. But in some way or the other, Bitcoin outperforms Ethereum as many other cryptocurrencies are already trying to do what Ethereum is doing. ETH has many direct rivals while BTC is comparatively the sole king. Its value storage and money moving functions leave less room for disruptive challengers.