The recent unprecedented jump in the value of Bitcoin seen in April 2021 reignited interest in cryptocurrencies across the globe. As more and more traders begin investing in digital currencies, the discussion circles back to two of the most commonly recognised coins – Bitcoin and Ethereum.
Bitcoin and Ether, the coin supporting the Ethereum network, are the two most prominent and valuable cryptocurrencies in the market. While both the currencies seem similar, they have several subtle differences.
If you are looking to invest in cryptocurrencies or using their platform for business, you must know the difference between Ethereum and Bitcoin.
What is Bitcoin?
Bitcoin was launched more than a decade ago by Satoshi Nakamoto. He created the famous blockchain technology that could record every Bitcoin transaction in a digitised time-ordered ledger. This breakthrough in currencies enabled two individuals to transfer digital money from anywhere across the globe. More importantly, Bitcoin became the first digital currency that was secure and democratic, i.e., not centralised by any government or authority.
Over the past couple of years, Bitcoin is becoming a commonly accepted mode of payment. Moreover, many people also purchase Bitcoin to keep their money someplace else than following the traditional bank deposit method. A few also invest in Bitcoin, believing that its value will be higher in years.
In a nutshell, Bitcoin is nothing but your money digitised on an online platform.
What is Ethereum?
Ethereum was invented a few years later than Bitcoin by a Russian-Canadian teenager who wanted to delimit the possibilities of Bitcoin. Vitalik Buterin created an application that could do much more than record static quantities.
Ethereum is a ledger technology used to build new programs and functions. Besides being the most extensive software platform, it is also open-ended and decentralised. The software platform is free from downtime, fraud and interference from any government or a third party. The only limit to the transactions that can run depends on the imagination of the developers who create Ethereum applications.
Ether (ETH), on the other hand, fuels Ethereum to run commands on the platform. Developers also use it to create and run applications on Ethereum. Since Ether is the native cryptographic token, it behaves like every other cryptocurrency.
Key Differences between Ethereum and Bitcoin
The principle of cryptography and time-ordered ledger governs both Ethereum and Bitcoin, but they are different in many ways:
#1. Functionality
Bitcoin only records the transactions in a digitised manner, and the data is affixed. Whereas, Ethereum network can potentially carry out transactions with an executable code. Developers can also create other cryptocurrencies or tokens on the Ethereum network, distributing them on different blockchains.
#2. Usability
Bitcoin was launched as an alternative to traditional currencies. Therefore, people can use Bitcoin to store their money digitally or exchange it for goods and services.
Ethereum, on the other hand, was invented to break away from the rigidity of Bitcoin and facilitate programmatic contracts. It offered developers a platform to create more applications using the Ethereum network.
#3. Speed
While trading is safe in both BTC and ETH, transaction confirmations are quicker to arrive for Ethereum’s built-in currency, Ether.
Crypto Genius
While the confusion between Bitcoin and Ethereum may persist for a few, platforms like Crypto Genius make trading in cryptocurrencies user-friendly and straightforward. If you’re someone who wishes to invest in digital currencies without facing the hassle of checking changing market trends, Crypto Genius is the best-suited software. Its high-end technological features and extensive algorithms conduct fully automated cryptocurrency trading. Once the trader sets their trading parameters, the Crypto Genius software executes the most profitable trades at every beneficial opportunity.
In Conclusion
While it may not be the most straightforward task to decide between Bitcoin or Ethereum, you must consider that speculations and estimations primarily govern trading in cryptocurrency. Sustainable growth is more likely to depend on the usability of an application and its broader acceptance in the mainstream economy.