Ethereum vs Bitcoin

31.03.2021
Ethereum vs Bitcoin

Although Bitcoin with 72% and Ethereum with 15% of the Total Market Cap are the two largest cryptocurrencies in the world, they are very much different in terms of origin and purpose. 

Bitcoin was created in 2009 by enigmatic Satoshi Nakamoto on the idea of money without physical form and as an alternative to regular currencies. On his P2P Foundation profile Nakamoto claimed to be a 37-year-old male who lived in Japan, however, some speculated he was unlikely to be Japanese due to his native-level use of English and his bitcoin software not being documented or labeled in Japanese.

On the other side, Ethereum was launched in 2015 and it's much more than cryptocurrency, or better said, it’s not a cryptocurrency at all. Confused? Ethereum is a platform or a community-run technology that powers the native cryptocurrency called Ether (ETH). 

Where Can You Use Ether And Bitcoin?

Bitcoin was made to store and transfer the value between parties. This means that you can purchase all the goods that you can buy with regular money. 

On the other hand, Ethereum does not store value but derives its value from allowing transactions between parties that do not have to know or trust each other. These forms of transactions are called Smart contracts and they represent a type of Ethereum Account, which means it can send transactions over the network without the control of the users, instead they are deployed to the network and run as programmed.

We can compare Ethereum with the operating system on smartphones that enables all sorts of different applications to function. Ethereum is the system that allows the development of applications for lending, investing and earning interest as well as trading between the countries. Ether, on the other side, can be used as a digital currency.

Bitcoin is cemented on the first place of cryptocurrencies top list but Ethereum price grew more than 530% over the last year and in February both currencies reached the maximum prices of $58,330.57 and $2,036.29 respectively.

Both Bitcoin and Ethereum are poised to succeed due to cryptocurrency's acceptance growth globally.

Bitcoin is stable, mainstream crypto, and Ethereum bullish sentiment is growing over the last year, according to experts in the field. Both currencies have passed the proof of time and most investors are keeping an eye on these assets.  

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