Bitcoin was the first Blockchain currency that was created in 2009. Since then Blockchain and its use have expanded exponentially. Shortly thereafter, Bitcoin received some competition with the release of Ethereum, which is also a Blockchain-based cryptocurrency. After a few years of growth, let us find out which currency will be more profitable in the long run.
Pros of Bitcoin
There are many reasons why you might want to buy Bitcoin. Below we have mentioned a few reasons:
● As Bitcoin is the first of the cryptocurrency tokens to be released, this makes it a valuable token which will carry a lot of value going forward.
● Bitcoin has been named “digital gold”. This means that it is easily stored and it will always be the default option when referring to cryptocurrency.
● Most companies worldwide have now catered for their systems to accept Bitcoin as a currency, which makes it a form of payment.
● It only has a limited number of coins up for grabs. This means that when the market is sold out, people will be fighting to get their hands on some Bitcoin and pay huge amounts of cash for it.
● The ecosystem of Bitcoin is rather large and is supported by small and larger companies worldwide.
● Bitcoin has proved that it can sustain a number of attacks and still produce growth and exceptionally high prices.
● It is also seen as a safe currency as there are many ways to store and use Bitcoin.
● Bitcoin promotes peer-to-peer transactions.
Pros of Ethereum
Ethereum was only released to the public in 2015, which makes it a very new currency. Let’s have a look at its advantages and whether you should buy Ethereum instead.
● Ethereum is built on a different structure of Blockchain than Bitcoin and has more functionality. Smart contracts technology has been incorporated, and it fuels the applications on the decentralized Blockchain called Dapps.
● Most ICOs are now launched on the Ethereum Blockchain, which will encourage the creation of new cryptocurrencies. The Ethereum Blockchain is powered by an easy set of code and programmers do not need to struggle for hours to build a new Blockchain.
● Ethereum is more multi-functional, which will, in return, be used on a more frequent basis. There is the Enterprise Ethereum Alliance that unites startup businesses and major companies to promote advancements in technology.
● Ethereum has also proved its sustainability by surviving multiple issues such as the DAO Saga, where Ethereum was actually split into two Blockchains.
Differences Between Bitcoin And Ethereum
The main difference between these two special Blockchain cryptocurrencies lies in the Ethereum’s smart contracts that are immediately available when you set conditions before your stock arrives.
But there are also other distinctive features to be mentioned:
● Bitcoin initiates immediate payments.
● Bitcoin is only able to make one peer-to-peer transaction.
● Bitcoin does not have any special conditions and it is paid from one account holder to another.
● The Ethereum processing times are much faster at this stage.
● The dapps make Ethereum a chosen currency, and anyone can proceed to create a code on top of the already made Blockchain to support their apps.
● The most important point how Bitcoin and Ethereum differ arises when you have a look at the trading rate of each of the currencies. At this point in time, Bitcoin has reached tremendous highs.
● Ethereum is heading towards a Proof-of-Stake mining model, while Bitcoin is mined under a Proof-of-Work algorithm.
● Bitcoin is more focused on payments between two parties, and Ethereum centers on the smart contracts and the expansion of the Blockchain.
What Is The Place In The Market For BTC And ETH?
Bitcoin will always be the first of the cryptocurrencies released. People will always want to use Bitcoin, so it will always have a place in the market. Bitcoin is now incorporated as an accepted currency by many businesses and can be used as a payment method.
Ethereum, on the other hand, is seen as the most advanced decentralized platform, still growing by the day. Most of the ICOs are powered by Ethereum. With an unlimited supply of Ether, it means that the popularity of Ethereum will grow substantially.
On a daily basis, new cryptocurrencies are surfacing, and each of them has their own special features. But it is not proven that these coins will take the place of the current top cryptocurrencies, such as Bitcoin and Ether.
Wrapping It Up
Before engaging in buying any cryptocurrency, always ensure that you understand all the terms and conditions as well as the risks you may need to take. Cryptocurrency is not always an investment as they have volatile rates at any time of the day. Ask yourself if you are prepared to spare the amount of money you wish to trade on or you will need to find other ways of investing. This is no getting-rich-quick scheme or opportunity, as each currency is connected to a different rate.
Bitcoin and Ethereum have been the two currencies that are neck and neck in the lead, but who will be the ultimate winner? And who will be the stronger and lasting currency? Sometimes it is good to be balanced and to have a little of both. One is for sustainability and the other is for growth and expansion. Both still have the prospect to grow… unless one of the emerging cryptocurrencies will change the game.
January 22, 2018
| Bitcoin News