To sign up for our daily email newsletter, CLICK HERE
The concept of cryptocurrencies is not new. There have been multiple articles, workshops, and seminars being conducted to understand and spread awareness of this investment model. The concept of cryptocurrency investment gained attention n 2009. Bitcoin is the first-ever cryptocurrency that hit the market. With the growing increase and interest in this investment model, there have also been other currencies gaining popularity. Ethereum is one such cryptocurrency. To invest in Ethereum visit https://bitqt-app.com/.
Ethereum has taken a safe position as the best next to Bitcoin. Both Ethereum and Bitcoin deploy blockchain technology and a decentralized finance model. Every transaction undertaken in deFi crypto exchanges using this coin is secured. Also, the blockchain platform allows for creating and executing decentralized applications that work on Ethereum. Additionally, Ethereum also gained popularity for its proof of work and proof of stake capabilities.
Before finalizing which is the best investment, let us understand the features and key differences between both these cryptocurrencies.
Bitcoin and its features
Bitcoin is the digital gold. Since its launch in 2009, this investment model has gained huge popularity amongst investors. Global investors from varied age groups have tried their luck with Bitcoin. While the launch price of Bitcoin was $1 in 2009. Today it’s $ 40k. This is a whopping increase and sure that even developers wouldn’t have dreamt of this growth. Today, this coin is pricey and continues to attract investments. Most investors who have Bitcoin use it either for trading purposes or for buying goods and services. Yes, you heard it right. Bitcoin has also taken the position of being a legal medium of exchange. Many countries have agreed and announced Bitcoin payments as a legal currency in exchange for goods and services. There are also taxes imposed on capital gains that one accrues using this investment model. The only drawback that has been pointed out by multiple experts and investment specialists in the data mining activity. Bitcoin mining is expensive in terms of energy consumption. There is a huge amount of environmental hazards due to this mining.
Ethereum and its features
Ethereum in simple terms is a platform that allows for multiple activities through its platform. The native coin used in this platform is the Ether. If Bitcoin is digital gold then Ethereum is termed as Silver in the investment industry. The platform works effectively to support the price increase of ETH coins. The Ethereum platform supports multiple projects including the creation of decentralized applications, execution of smart contracts, etc. all these apps developed using the Ethereum platform need to use the Ethereum blockchain. This directly creates an increased demand for the coin in the global market. This currency attracted a global launch in 2015 and promised to replace multiple limitations of Bitcoin. Since then the developers have been continuously investing in their research and development. In 2020, Ethereum also announced the launch of an upgraded version of Ethereum 2.0. This particular platform will use the proof of stake capability as against proof of work.
Will Ethereum beat Bitcoin in the global market?
This is a wait-and-watch situation. There are a lot of similarities between both coins. Both the platforms currently utilize the proof of work capability to validate a transaction. If more than 50% of miners agree on a transaction, then the details are directly stored on the public ledger. Both the currencies make use of decentralized finance. Also, the supply of both these coins is limited in the global market. It is estimated that the last Bitcoin mining activity will be in 2040. Ethereum on the other hand uses the burning mechanism to curb inflation and offset the supply globally.
What is the difference between these cryptos?
Bitcoin was primarily developed to allow for transactions between two people without the need for a banking intervention. A user can easily transact funds from one account to another without the need for a bank. Ethereum on the other hand is used to develop applications and products using blockchain technology. The platform allows to execution of smart contracts and the algorithm is built-in o the network.
Both these cryptocurrencies have been garnering attention in the global market. There is also technological development undertaken in both spaces to ensure that the coins stay abreast in the global competition.