Bitcoin and Ethereum are undoubtedly the top two cryptocurrencies in the blockchain world. However, if you are planning to invest in any one of these two, you probably have the questions “what is the difference between bitcoin and Ethereum?” or “Which one is a better buy?” on your mind. This guide will answer most of your questions and will give you a better idea of Bitcoin and Ethereum. With sufficient information, you will be able to decide the correct option for yourself. Let’s start with the basics.
What is Bitcoin:
Bitcoin is a decentralized digital currency that can be sent between users without the interaction of a third party. Bitcoin was not developed as an application or technology like other cryptocurrencies which was developed for different purposes. It is purely money in digital form. The first transaction occurred in 2010 when a computer developer Laszlo Hanyecz bought two pizzas for 10,000 bitcoins. Due to a drastic change in value, 10,000 Bitcoins are worth more than $1 billion.
In January 2009, an unknown figure named Satoshi Nakamoto introduced the idea of peer-to-peer electronic cash on a white paper. He introduced a system that could operate securely without any central authority. That is why it is known as a decentralized digital currency.
Bitcoin was established as an alternative to traditional fiat currencies backed by countries. That was the main purpose of developing bitcoin. Here are the latest statistics.
Price: $11,357.34 (October 12, 2020)
24 Hour Volume: $16,440,373,135
Market Cap: $210,277,663,397
All Time High: $19,665.39
All Time Low: $67.81 (over 7 years)
What is Ethereum:
Ethereum is not just digital money, it is an open-source platform of blockchain conducting transactions which are referred to as decentralized digital applications or smart contracts.
Individually Ethereum is not a cryptocurrency, but Ether (ETH) is a cryptocurrency. Ether is a cryptocurrency that is based on Ethereum.
Making it easier to understand, Ethereum is a programming language and decentralized software platform. The developer of this platform built apps that are decentralized and smart contracts that are on top of the platform using the language. Ether (the cryptocurrency) works as a fuel to run the platform.
This project was launched in 2015 to make Bitcoin a more reliable and stronger digital currency but eventually, it became the competitor of Bitcoin. Let’s look over the statistics of Ethereum.
Price: $372.57 (October 12,2020)
24 Hour Volume: $9,258,278,802
Market Cap: $42,082,901,458
All-Time High: $1,448.18
All Time Low: $0.432979
Bitcoin or Ethereum: Which One to Buy:
If you’ve read the above section of this guide you must have got an idea about Bitcoin and Ethereum. Both of these are different concepts, they are not even comparable because of the different purposes of both the projects. So being a wise man what would you do? Would you invest in Bitcoin or Ethereum? Bitcoin is made for the purpose of alternating a fiat currency and showed its worth in the past. Even in this pandemic when the whole world’s economy was on a downfall, Bitcoin was on a marvelous fly. Most of the large scale investors are supporting Bitcoin because of its worth and value.
Now, that you know enough about bitcoin and Ethereum, the question is “which is a better buy?” Really, the choice is yours, so make sure that you have all the information that you need and invest wisely. This will be your key to reaping enjoyable benefits in the coming times.