You know these two cryptocurrencies are the best so far. Simply, No other cryptocurrency gets that position. But how? Because of these two digital currency projects have better plans. Ethereum Vs Bitcoin. Which one is the best?
In this article, I’m going to compare these two cryptocurrencies. And let’s find out why ethereum is better than bitcoin. Stay tuned.
Before I get into that, let’s dive into the basic factors of these major cryptocurrencies.
Bitcoin was started in 2009 and it was the first-ever digital currency made. While ethereum, it started in 2015.
Ethereum was founded by Vitalik Buterin who is a programmer involved in bitcoin magazine. But when talking about the founder of bitcoin, things are a bit weird. because no one knows who is he. there’s only a clue. his name is “Satoshi Nakamoto“
I recently wrote an article about “What Is Ethereum” if you need to check out.
Okay, let’s get to work.
BITCOIN
Bitcoin’s main aim is global finance. To fix problems in global finance. Currently, its market cap is about $178,413,757,179 and the price is around $10000 in February 2020
However, bitcoin’s all-time high was $20,089 which is nearly 2x to the current value.
Talking about transactions, Bitcoin transactions could take minutes to complete. But cryptocurrencies in these days have better transaction speed comparing bitcoin
ETHEREUM
Ethereum’s blockchain is also called as “blockchain 2.0” Why? because it’s far ahead in every way from bitcoin’s blockchain. I will show in a minute.
The most known term is the “Smart Contract” when discussing ethereum. Simply, it’s a smart decision-making algorithm made by ethereum developers. Here how it works.
“Make transaction of 1 ETH from Bian to Peter if Peter’s balance is also 1 ETH”
This is the simplest explanation for Smart Contracts If you want to find out more, read my what is ethereum article that I mentioned above.
However, Its market cap is around $29,785,464,384 and the price is $271.39 currently.
The main advantage compared to Bitcoin, Ethereum’s transactions take seconds to complete. How great? Besides, It’s customizable. We will discuss more.
Now you may already know why ethereum is better than bitcoin. Because its technology is far ahead than bitcoin. But somehow, bitcoin is the leading cryptocurrency according to the market cap rankings.
Now Let’s Find Out The Main Differences Between Ethereum & Bitcoin
Concept Basis
Ethereum’s main tag line or known name is the “Smart Contracts”. When somebody discusses ethereum, the first thing comes into their mind is Smart Contracts.
While bitcoin, The most commonly used tag line is “Digital Currency” or “Digital Money”.
Then, this is the major difference between these two.
Transaction Technology
Ethereum Vs Bitcoin, Here we need to discuss some facts. Because there is a considerable difference when talking about transaction technology.
In Ethereum, when you making a transaction the transaction goes through the ethereum node and make it to the transaction pool. Every transaction happening in the ethereum network, are in the pool.
Then miners pick transactions individually and then make it happen. But the best story is miners, picking transactions considering one thing. The transaction fee. That means you can customize transaction fees in the ethereum blockchain.
Unlike Bitcoin, it using a traditional transaction system which means it has a fixed transaction fee. No offense because this was the first cryptocurrency and every alternative coin inspired by bitcoin.
Transaction Speed
However, ethereum also ahead in transaction speed. It handles nearly 15 Transactions per Second which is known as “TPS“. that result in few seconds to complete a transaction. If you pay a higher transaction fee, then it even speedier.
But bitcoin handles about 3 – 6 Transactions per Second. It takes minutes to complete a single transaction.
However, Ethereum takes credit for transaction technology and speed.
If you want o find out more interesting stories about transactions, I will link them at the bottom.
Coin Supply And Market Ranking
Coin supply directly affecting the market rankings. In ethereum, there is no maximum supply limit. The production of ethereum in continuous. Currently, 109Million of ethereum coins in circulating. Ranking at #2.
In fact, the Bitcoin supply is limited to 21 Million coins. However, with 18 Million coins in circulating, Bitcoin ranked 1# in the market cap ranking and never lose that rank.
Bitcoin has the highest liquidity ever. In my point of view, the limited supply and the demand causing that highest liquidity that bitcoin has achieved.
But Ethereum did a great job also with 109 Million of circulating coins.
Besides, Bitcoin is older than Ethereum.
Authorization
These both don’t have a central authority which means “Decentralized“. Most of the major companies all over the world do have a central authority to control. Also, even some cryptocurrencies do. Like Ripple
But Ethereum and Bitcoin completely decentralized. Instead, it is formed by a collection of spots over the world.
I do prefer decentralization because this is the future of every organization. However, decentralized systems have better security than centralized systems.
Ethereum Vs Bitcoin, Which One Is The Best?
By considering all the above facts, I would say Ethereum is the best. But remember, Bitcoin has the highest liquidity in market rankings.
But in every other fact, Ethereum takes the lead. Ethereum has better technology than Bitcoin and that 100% accurate.
Let’s Summerize
- Ethereum has faster transaction speed and it can be customizable.
- ETH uses smart contracts which you can do more with ethereum blockchain than bitcoin’s.
- Better transaction technology.
- And most importantly, with that awesome technology, Ethereum’s value is lower than bitcoin which is a great point that every cryptocurrency investor can acquire Ethereum.
So which one do you prefer?
Do you have trading experiences? Which one is better for trading?
Do you have mining experiences in both?
I would like to know your ideas too. Don’t forget to leave a comment and share this article.
