Bitcoin and Ethereum are the two largest tokens in the world of cryptocurrency. People interested in cryptocurrency tend to compare these two coins quite often. The comparison is only right considering everyone wants to know the complete details before investing their money. They both have many similarities such as both are digital currencies, can be used for exchanges and investments, both can be stored in different crypto wallets, and etc. However, there still exist many differences between both of them. We will get onto both of them in detail. These details will make you distinguish both of them to a great extent.
Bitcoin first came into being the January of 2009 by an unknown person under the faux name of Satoshi Nakamoto. To this day the person is unknown but they made something which is now known by the whole world. Bitcoin is one of the online currencies that works without any central authority. This means it is not regulated by any government, bank, or corporation. It was not the very first cryptocurrency yet it made its mark quite big to make a platform for other online currencies. This mode of payment is not formally recognized yet continues to keep going strong.
Ethereum is not just cryptocurrency. It is a software platform for open-source blockchain which is decentralized. It was launched back in July 2015. It has only been six years and the platform is already well known among cryptocurrency geeks. This platform makes sure decentralized applications and smart contracts are deployed and run without any problem such as frauds. They have several applications and most of them are powered by their native cryptocurrency – ether. The presale of ether was launched in 2014. Response to the sale was great by general public. Ether is not only used as a digital currency for exchanges but the platform, Ethereum, uses the currency run applications as well. You can now buy Ethereum in Pakistan too.
Both are digital currencies but Ethereum is more powerful. You may wonder how? It is because Ethereum is also a ledger technology, and businesses are using Ethereum to create programs. This is what makes Ethereum powerful over bitcoin. BTC is taking the lead when it comes to payment systems but then again Ethereum takes the lead when it comes to developing smart contracts. If we talk about speed then Ethereum takes the lead here as well. Your transactions can take place in seconds rather than minutes.
You can also create different tokens or cryptocurrencies on Ethereum. The principle to create them will be the same as Ether. It can be however be distributed on any kind of blockchain be it public or private.
BTC is the first while Ether is the second-largest cryptocurrency. The question here arises is, which currency from the mentioned both you would want to invest in? Well, the answer depends on how much risk you can afford.
Bitcoin is the cryptocurrency that is most famous among investors from big corporations. This is because now many firms have started to accept Bitcoins for their payments. Ether on the other hand is more concentrated towards utility-based cryptocurrency.
The primary goal of Ether is not to develop itself as a monetary system, unlike Bitcoin. It was built to facilitate the platform of Ethereum itself. The platform of Ethereum as a blockchain supports Bitcoin. Ethereum did not plan to compete but Ether’s popularity pushed it to compete with other cryptocurrencies.
For investment, it can be seen bitcoin is more stable for investments. However, it is always a good idea to spread your investments across the different cryptocurrencies. Do note that you need to do your research before investing. Ether’s market cap is smaller than bitcoin, but it is still a good cryptocurrency to invest in.
Ether is behind Bitcoin but the changing market of digital currency doesn’t guarantee that it will always be behind. Ether is doing pretty well and can make a jump anytime.
In case you are looking to buy Ethereum, there are Ethereum exchanger in Pakistan like c4changer which can help you in the process.