Bitcoin VS Ethereum- Which Is Better?
With the advancement that we are facing with every new day, you must know about the two biggest Cryptocurrencies in the market. Bitcoin and Ethereum were initially not meant to compete with one another. However, with the number of Cryptocurrencies coming to the market, it became a competition between them. There are several platforms where Cryptocurrencies can be traded, such as Bitcoin Prime, specially made for Bitcoin trading.
The main difference that you must understand between Bitcoin and Ethereum is that Bitcoin is a Cryptocurrency only, whereas Ethereum is a blockchain platform. However, the two have different blockchain platforms which they are powered from. The supply of Bitcoin is finite, and not more than 21 million Bitcoins can be issued. However, Ethereum is moving towards the launch of Ethereum 2.0. To understand which is a better buy, you need to get a clear picture of the main differences and similarities between the two:
- Background
Bitcoin was the first-ever Cryptocurrency to be released. It was released in 2009. It is still unknown whether the founder, Satoshi Nakamoto, was a person or a group of people and whether they are alive or dead. Ethereum was launched in 2015 by Vatalik Buterin, who was a programmer and a researcher.
- Complete Concept
Bitcoin can be used as a medium of exchange. It can be used as a substitute for fiat money. Ethereum is a blockchain platform for different applications and smart contracts. However, both of them support peer-to-peer transactions.
- Mining
In the case of Bitcoins, the transactions can be validated by the miners using a method called Proof of Work. In this, the miners try to get a solution to complicated Mathematical problems that would make them the first ones to add a block to the blockchain. In the case of Ethereum, the same is used, but they are trying to adapt something new, known as the Proof of Stake. This gives the miner power based on his coin holdings (the more coins he has, the more power).
- Transaction Fees
Paying the transaction fees in Bitcoin is dependent on the person. The transaction succeeds even if you choose not to pay any fees. In Ethereum, paying the transaction fees is important to get your transaction to be successful.
- Processing Time
In Bitcoin, adding a block into the chain takes approximately 10-15 minutes.
In Ethereum, it takes only 12-15 seconds.
The Bottom Line
To decide which one is better between Bitcoin and Ethereum, you have to first evaluate the factors mentioned above based on your requirements. While Bitcoin is still the most popular Cryptocurrency, Ethereum is a blockchain platform that can also be considered big in terms of market capitalization. Both face a lot of volatility, and it is up to you to choose the right one for you. Both of them are considered to be good for a decent long-term investment. So, if you wish to buy one of them, do not keep waiting.
