London, UK, 12 May 2021, ZEXPRWIRE,
Bitcoin, which you keep hearing about all the time, is a digital token that introduced us first to the concept of Digital Currency. You all must have heard of the mysterious Satoshi Nakamoto who is believed to be the only founder of Bitcoin. When it was first introduced back in the year 2009, no one thought that it would soar this high and one day huge Multinationals like Square and Tesla will start accepting it as a payment method. What attracts the users the most is the degree of anonymity it has to offer to the users without any involvement of a third party. There is nothing in physical form, in fact, it all goes virtual through your computer screens or public ledgers available to all. It also promises very small transaction fees.
Since Bitcoin is not regulated by any centralized governmental authority it has met with a mixed response internationally. Many countries have imposed strict rules and regulations against the currency ensuring its restricted use because of the high potential that it holds to be used for illegal activities like money laundering. People are not only making tons of bucks trading it, in fact, mining is also another associated activity that is a source of income for many people. The increasing popularity of Bitcoin has not only attracted investors but has also triggered the launch of many other cryptocurrencies such as Ethereum. All of them are collectively referred to as Altcoins.
Ethereum is another popular Cryptocurrency that is currently the world’s second famous digital currency right after Bitcoin. Like all other Cryptos, this also works on the blockchain network. Everyone who is a part of the Ethereum network holds a copy of the public ledger which keeps a track of all transactions being done. Just like Bitcoin, Ethereum also goes around a process of mining that involves solving complex, computer-aided mathematical equations. This activity confirms transactions and leads to the creation of new blocks to the blockchain.
Ether can also be used to buy and sell goods and services. Ether is accepted as a payment method by many companies all around the globe such as Shopify, Overstock, Gipsybee, Travala, CheapAir, Tripio, etc.
The Investment Center Broker, Mr Troy Hewitt says it might seem initially to a lot of people out there that both Bitcoin and Ethereum are the same but in reality, Bitcoin lacked at some places which Ethereum has the potential to fill. He also thinks that this is the primary reason behind its unprecedented Ethereum boom that we have been witnessing.
Ethereum VS. Bitcoin
If you have been in touch with the Crypto world lately, you must have an idea of how Ethereum has been on its way to steal some of the limelight from Bitcoin. It became the talk of the town when the world saw how Ethereum hit the 4k US dollar mark this Monday. This has brought it up by 450% since the year 2021 started. Although the Internet-famous Dogecoin went up by 11,000%, many investors continue showing a lack of interest in the currency. Mr Hewitt says that many investors keep comparing it to the “Reddit fueled trading frenzy” and think that it can bring them little good as compared to Ethereum and Bitcoin.
Mr Vitalik Buterin, the founder of Ethereum, had been involved in the Bitcoin business before and he constantly felt how Bitcoin was more like a “pocket calculator”, which does one function perfectly and fails at the others. He compares his currency to a smartphone which is able to perform multiple tasks flawlessly by making use of several applications. Ethereum runs on a computer-based technology also, but people can keep adding apps to it to improve its functionality. Mr Hewitt agrees with the founder who thinks it is the “most logical way” to construct a platform that can be employed for many more uses.
Another difference that marks Ethereum as a favourite is its lower block time. This can be explained by drawing a comparison; a Bitcoin transaction takes minutes to confirm while an Ethereum transaction can be confirmed within a few seconds.
Not to mention the fact that two were created with completely different purposes. Bitcoin rolled out with an aim to replace national currencies and become a medium of exchange and a store of value. While Ethereum was introduced to come up with a platform to
Despite all the hype and the soaring rates, it is not regarded as something near to perfect because of certain associated problems such as difficult scalability and the environmental degrading impact. The environmental issue is also being discussed with regard to Bitcoin but this does not mean an elimination of the negative impact of the currency. Currently, Ethereum is undergoing an up-gradation and everyone is looking up to Ethereum 2.0 to address the major issues.
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