Differences between Bitcoin and Ethereum

What do you mean by Bitcoin?

Bitcoin happens to be a digital currency that is not controlled by any central authority and can be transferred on a P2P (peer-to-peer) network. An individual or a group of individuals invented this digital currency in the year 2009. Today, the majority of cryptocurrency traders and investors use websites like Bitcoin Motion. This platform is one that many investors trust, so you can give it a try as well.

•          A decentralized system referred to as Blockchain will create, store, transact, and distribute Bitcoin. Miners can validate the transactions with bitcoin by adding a new block to the network, and they have to mine a bitcoin by solving some complicated mathematical problems.

•          All the Bitcoin transactions are recorded by a public ledger and servers in various parts of the planet will retain the copies.

•          There is no need to purchase an entire Bitcoin, and only a portion of it can be purchased if required.

•          The short form of Bitcoin happens to be BTC. There are many platforms available from where you can invest your funds in BTC. You can also use a bitcoin ATM to invest or withdraw your funds.

What do you mean by Ethereum?

Being a Blockchain-based platform, Ethereum’s network currency is known as Ether (ETH). Similar to Bitcoin, a distributed ledger will store all the transactions as well. 

•          Ethereum is intended to be decentralized, scalable, and programmable.

•          Transactions are made with contracts, and a transaction with ETH can be processed successfully when all terms of the contract is met by the both parties. 

•          A flexible platform is provided by this digital currency for creating applications by making use of the solidity scripting language.

•          The cryptocurrency of this blockchain-based platform happens to be ETH (Ether).

Bitcoin pros

•          The initial cryptocurrency on the market happens to be Bitcoin.

•          Bitcoin is considered to be the most widely accepted digital currency on the planet.

•          The value of Bitcoin is not based on political interference, but on supply and demand.

•          As compared to fiat currency, Bitcoin comes with a superior transaction speed.

Bitcoin cons

•          The price of Bitcoin is extremely volatile.

•          The functionality of Bitcoin is restricted.

•          Mining bitcoin is not an eco-friendly process because it can consume a huge amount of energy or power.

•          100% privacy cannot be guaranteed and there is no insurance coverage available for crypto accounts and wallets.

Ethereum pros

•          The innovative blockchain technology is used by Ethereum for its transparent and decentralized system.

•          It has one of the biggest developer communities.

•          As compared to Bitcoin, transactions are processed faster by the Ethereum platform.

•          An upgrade has recently been completed by Ethereum that reduces its carbon footprint significantly.

Ethereum cons

•          Ethereum cannot be considered to be the most well-known digital currency on the planet.

•          As compared to the Bitcoin platform, the transaction charges are somewhat higher.

•          The demand for Ethereum tokens can be reduced by its unlimited supply.

Difference between Bitcoin and Ethereum

1. Value

The most notable difference between the 2 digital currencies happens to be the price history. The value of Bitcoin was around $48,000 in 2021 and it had a market cap of approximately $900 billion which is 50% of the net crypto market cap. Recently, there has been a notable rise in the value that has surpassed the $10,000 mark in 2020 and has remained at more than $30,000 since mid-2021.

The value of Ethereum had been $3,200 in the month of August 2021 and it had a market cap of approximately $385 billion that helps to make it the 2nd largest digital currency on earth. As a matter of fact, Ethereum happens to be 4 times bigger as compared to the 3rd biggest digital currency on the planet. There has been a steep rise in the value of Ethereum just like Bitcoin and it has stayed on top of the $2,000 mark constantly since mid-2021.

2. Mining proof

A proof of work process is used by the miners for Bitcoin. It has been indicated by proof of work that a mathematical puzzle has to be solved by the miners for receiving their tokens. The puzzle will be solved by them authenticating transactions on the blockchain of Bitcoin. Miners recording the maximum number of information will get the maximum rewards. Even though proof of work is used by Ethereum for the purpose of mining, it made a switch to proof of stake.

3. Rewards

The miners of Bitcoin will receive rewards after completing the puzzles successfully. On the other hand, Ethereum miners will receive commissions from the transaction fees of Ether.

Online trading has become quite well-known across the globe right now, and the introduction of the Bitcoin Profit app has made it quite simple to do so.