6 Reasons Why Ethereum and Bitcoin Are So Different

There is no reason to explain the ways how cryptocurrencies have changed the world. Many people around the globe started to research different digital currencies and their features. The two most popular ones are Bitcoin and Ethereum (more precisely Ether).

However, becoming a successful investor is not an easy task. First of all, people need to understand that crypto investing and online gambling are not the same things. In the cryptocurrency world, things do not depend on luck at all. People need to use every possible tool to improve their knowledge.

There are many Bitcoin circuit software solutions online that can help beginners. These programs send signals to people that can help them make better decisions. If that seems like a good option, people should go to URL. That is only one of many tools they can use to boost their performances.

Despite that, people should start by improving their theoretical knowledge as well. At first glance, Ethereum and Bitcoin look almost identical. However, there are also many differences people may not spot immediately. Because of that, we would like to analyze the reasons why Ethereum and Bitcoin are so different. Let’s find them out together!

Source: fox

1. The Length of Time They Exist Is Different

Bitcoin is the first reliable cryptocurrency that appeared on the crypto market. Since 2009, it has experienced many ups and downs. That is probably the reason why some people are still skeptical. On the other hand, Ethereum exists since 2015. However, for only 7 years, it also managed to gain worldwide popularity.

These pieces of information may not seem relevant at first glance. However, analyzing Bitcoin is much easier because people have more material to work on. However, we can also agree that a period of seven years is not short either.

Source: Medium

2. Price Difference

Investing in Ether will be much easier compared to investing in Bitcoin. The reason why we say this is simple. Believe it or not, the value of one BTC while you are reading this is almost 48 thousand dollars. On the other hand, the price of one ETH is 1800 dollars.

We do not want to say that investing in Bitcoin is bad. People need to understand that is the most popular crypto in the world. For only three weeks, its price jumped by around ten thousand dollars. On the other hand, Ethereum may be a better option for people that struggle with a budget. However, with available tools and programs, both options can be an excellent option.

Source: Nairametrics

3. Number of Available Tokens

Here comes the more interesting part for all the beginners. The total supply cap of Bitcoin is 21 million. That number is not going to change ever. Currently, around 19 million BTCs are circulating among Bitcoin traders and investors.

There is another thing we will have to say. A new Bitcoin appears every 10 minutes. However, when the number of new BTCs reaches 2140, the “production” of new BTCs stops. That is the reason why Bitcoin will never have a problem with inflation.

On the other hand, that type of limit does not exist when we talk about ETH. Currently, there are around 97 million ETH tokens in the world. That number will sooner or later jump. However, we are about to see how the total supply cap will influence the price. This year, the value of one ETC has a growing trend.

Source: US News Money

4. They Have Different Purposes

We are probably boring, but we need to repeat the same thing once again. Bitcoin is the most powerful and popular crypto in the world. People use it to purchase goods and even services online. Despite that, people can hold BTC tokens and use them as an investment when the best moment for that comes.

Ethereum is still not popular as BTC for that purpose. Most people will not use them to purchase products. In most cases, the developers are the ones that use them to build applications. Whenever the number of new apps appear on the market, the value of one ether jumps. At least, that is the situation we have had so far.

Source: Nairametrics

5. Concept

We have to continue in the same manner to make things clear. The concept of both cryptocurrencies is probably the reason why they have a different purpose. Bitcoin is digital money, and that is the way how people should look at it. On the other hand, the first association for Ethereum should be smart contracts.

We recommend people remember these two phrases. In that way, they will understand the difference even better.

Source: BetaNews

6. Different Transactions

Both digital currencies offer quick transactions. People need to understand that both systems are decentralized. Because of that, there are no financial authorities that participate in the transaction process. That makes Ether and BTC an excellent option for many businesses. They can complete the transaction process 24 hours a day, 7 days a week.

Yet, there is an interesting difference when we talk about the speed between these two virtual currencies. The block time of Ethereum is usually less than 10 seconds. On the other hand, the block time of Bitcoin often lasts less than 5 minutes.

There is a good reason why that difference exists. All the Bitcoin transactions are manual. When we talk about Ethereum, all the transactions are programmable. That is the reason why they are so fast.

Source: Yahoo Finance

So, Which One Is Better?

We won’t answer that question precisely. People need to find the answer alone. However, we can make some sort of conclusion that will help people make better decisions.

As we said, both digital currencies come with certain benefits. Bitcoin is more liquid because of the lower coin supply. On the other hand, the technology that Ethereum uses is more practical for people.

Despite that, the price of one BTC is more than 40 thousand dollars. That may be a good opportunity for people that do not have financial problems. Beginners with a lack of experience should not risk that much. Understanding the concept of both digital currencies requires hard work and patience. That is the reason why everyone should focus on education before starting the journey.

About Margharita Evanom

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