Is Ethereum a More Powerful Cryptocurrency than Bitcoin?Feb 17, 2021, 6:18PM
What is the difference between Ethereum and Bitcoin and which of the cryptocurrencies is more powerful? In this article, we examine the debate.
Bitcoin and Ethereum are assets that top the rating of cryptocurrencies. For most people, even those to whom these names say something - it's twin brothers, alternative and competing organizations. For those who are deeply interested in blockchain issues - fundamentally different technologies.
Ethereum and Bitcoin: parallels and rivalries of major cryptocurrencies
Understanding the fundamental differences between Bitcoin and Ethereum, allows us to move to the comparison of the assets of ETH and BTC. It will allow us to determine what is better - Bitcoin or Ethereum, if we are talking about investing and mining. Before we move on to defining the pros and cons, it is worth listing the common traits:
- Both resources are mined and traded;
- Special wallets are needed to store the key codes that ensure ownership;
- Trading in cryptocurrencies, including Bitcoin and Ethereum, takes place on the platforms of exchanges;
- The value of both cryptocurrencies largely depends on the supply and demand, that is, is prone to jumps in connection with the events of the industry.
Ethereum transactions make it difficult only to reduce the prevalence of this asset, although the situation is gradually rectified.
Ethereum is also faster when it comes to transactions. This trend is especially noticeable in crypto gambling, which has been developing rapidly in recent years. Despite the fact that fast transactions was something always associated with Bitcoin, Ethereum managed to snatch the title of "fastest crypto" years ago. It is quite easy to prove this fact - as soon as you sign up with one of the Ethereum casinos reviewed here and make deposits or withdrawals you can be sure that the funds will be available on your account in just seconds.
The pros of Bitcoin
There are so many people talking about the advantages of Bitcoin that this is its main plus. Attention provides buying, buying - rising price, price increase - an opportunity to get passive income or earn on the course. But bitcoin also has significant advantages:
- Banks, business sharks, and big investors are already behind the most important of cryptocurrencies. This negates the chance to depreciate at once: Bitcoin can already be considered a reliable asset.
- It is easier to work with Bitcoin coins: almost all exchanges, trading platforms and even payment systems have added it to the list of assets. This simplifies transactions, buying and selling opportunities, and transferring to fiat money.
- Terminals for "cashing out" Bitcoin are not uncommon. On the Internet, this cryptocurrency is accepted by many services and even online stores.
- The economic model of Bitcoin, which initially limits the total volume of coins, so works for miners. There will be no oversupply of the resource, that is, there will be no reduction in the cost due to saturation.
Ethereum is a second-generation cryptocurrency that has been aptly nicknamed Bitcoin 2.0. The creators of Ether were able to prevent errors of the prototype and exclude them from their product. The benefits of the Ethereum digital asset are:
- The system is designed for mining with small capacities, the developers deliberately chose the target audience of miners with small and medium-performance PCs;
- The Ethereum block is optimized: scaling provides a high transaction rate. For Bitcoin, the processing time is up to 2 minutes, Ethereum - 10-15 seconds.
- Ghost’s own code and protocol allow you to get rewarded from blocks you've already mined. This type of earnings is added to mining and profits from cranes.
- The MetaMask app allows you to work with the Ethereum blockchain directly from the browser. So far, it's only Chrome, but over time, the developers plan to add other bundles.
- Mining Ethereum outside the pool with its own resources is still a reality.
- The reward for Ether for miners does not decrease with time, in Bitcoin every 4 years it is reduced threefold. The duration and amount of production in the Ethereum ecosystem are not limited.
- Ether is a consumable for creating applications in the Ethereum environment, meaning it needs at least some programmers and optimizers. This ensures the demand for it, although it strongly divides the audience interested in dominant cryptocurrencies.
To put it simply: consumers of Ethereum will remain working with smart contracts representatives of business and IT-sphere, and Bitcoin will buy ordinary user goods and services.
Ether prospects: what are the chances of bypassing Bitcoin?
The above advantages of the cryptocurrency, which is still occupying the second position, make you seriously wonder whether the leadership of Bitcoin is so sustainable. The rise of BTC provided a high, raised around the media system. Experts, who consider digital smart contracts the most promising platform for business, political technologies, and storage systems, believe that the first drop in interest in Bitcoin will lead to the automatic rise of the real Ethereum consumed. Tokens, which will be in demand for many years, which will ensure an increase in the price of ETH.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.