Bitcoin has been known for being one of the best Cryptocurrencies introduced. It is also the largest in terms of market capitalisation; on the other hand, Ethereum is the second digital token introduced and the second-largest Crypto in terms of market cap. Though they bear many similarities, numerous distinctions separate them. Both are digitally based, dealing with online transactions, decentralised and cannot be regulated or controlled by intermediaries (even the Government). Also, both Bitcoin and Ethereum make use of blockchain technology. To know more about them, make sure to check out Crypto Genius.
Bitcoin vs Ethereum: Points Which Separate Them From Each Other
- While Bitcoin is, in fact, just a digital currency prevalent in the market, Ethereum is not. Ethereum is more than just a mere currency. While Ether deals with transactions online, it does more than that, just like Bitcoin. People make use of Ethereum to build new programs for their companies. Ethereum is a far more robust take on Blockchain technology. While Bitcoin is version 1.0, Ethereum is always one step ahead. So, Ethereum is a number one pick.
- The Enterprise Ethereum Alliance provides large support in the functioning of Ethereum. With the combined help of more than 500 companies, this exceptional company does its absolute best to build and regulate the better functioning of Ethereum technology. This is known as the ‘Smart Contract’ technology. However, no such thing is offered in the case of Bitcoin.
- Though both Bitcoin and Ethereum function with the help of Blockchain technology, Ether is far more powerful. While Bitcoin is a peer-to-peer method of payment, there is no competition with Ethereum when it comes to dealing with Smart Contracts.
- Completion of transactions with Bitcoin can take a lot of time. However, on the other hand, with Ethereum, your transactions will be processed in a matter of seconds.
- The main motives of both of these Cryptos are completely different. While Ethereum was developed to be a network for contracts that cannot be reversed and has its currency, Bitcoin was designed to be a medium of exchange and a store of value.
The Bottom Line
As far as the matter of which is a better means for investment- Bitcoin and Ethereum- is concerned, we will have to say that the real choice depends on the investor’s risk tolerance level itself. The Bitcoin value has been gradually increasing and attracting a large number of businesses. Many companies have started opting for it as their means of payment. On the other hand, one can view Ethereum as more of a utility-based digital currency, one of the first networks to support the functioning of Smart Contracts.
If you wish to know about the major factors which separate Bitcoin from Ethereum, given their similarities, this article is sure to come in handy for you. So, make sure to read it until the very end and get ready to be amazed about the various facts you will find out about.