- What is Bitcoin?
- What is Ethereum?
- Key Takeaways: Bitcoin vs Ethereum
- Difference between Bitcoin and Ethereum
- Bitcoin vs Ethereum Price Comparsion 2021
- Should you buy Bitcoin (BTC) or Ethereum (ETH)
- How to Invest in Bitcoin (BTC) and Ethereum (ETH)
Difference between Bitcoin vs Ethereum
Bitcoin is the first of the many digital cryptocurrencies we see today. It is a decentralized digital asset that was originally described in a whitepaper in 2008 by a person or a group of people under the alias name of Satoshi Nakamoto. It was in 2009 that the Bitcoin cryptocurrency was finally launched.
Bitcoin is a peer-to-peer (P2P) online currency where transactions can take place directly between two equal and independent participants of the network without the intervention of any third party. In Nakamoto’s words, Bitcoin was created to facilitate online payments between two parties without going through the lengthy and gruesome process via a financial institution.
The price of 1 bitcoin today is $48,329.70 (December 23, 2021) and it is the world’s largest cryptocurrency by market capitalization today.
Ethereum, the second-largest cryptocurrency by market capitalization, is an open-source blockchain system that has its own native cryptocurrency called Ether. Ethereum (ETH) works as a cryptocurrency platform for several other cryptos and helps in the execution of Decentralized Smart Contracts.
Vitalik Buterin, the founder of Ethereum cryptocurrency described Ethereum in 2013 on a white paper along with his co-founder and secured funding for the same in a public crowd sale in 2014. The official launch date of the Ethereum blockchain was July 30, 2015. It has undergone several updates since its launch, the recent being the London Hard Fork update.
The primary goal of Ethereum is to become the global platform for decentralized application (Ethereum Dapps) that would allow the programmers and coders across the globe to run and write software that are censorship, fraud, and downtime free. It was the pioneer of the frequently used term today in the blockchain space, smart contracts. The principal innovation of Ethereum was designed to allow the execution of smart contracts via blockchain. As described by the co-founder, Gavin Wood, Ethereum was designed to become “one computer for the entire planet”.
The Ethereum blockchain is capable of hosting other cryptocurrencies called “tokens” through its ERC-20 standard. This in fact is the most common use for the platform. Ethereum coin price started at $3 while Ethereum price today stands at $3952.30. This rise in price has been in a span of only six years.
Key Takeaways: Bitcoin vs Ethereum
The unique features of Bitcoin (BTC) are:
- It is the first-ever cryptocurrency to appear in the market
- It has created a conceptual as well as technological shift leading to the development of thousands of similar projects.
- Bitcoin pioneered the idea of money being sent and received across the globe without going through intermediaries such as banks and other financial institutions.
The unique features of the Ethereum cryptocurrency are:
- Ethereum is the pioneer of the smart contract concept.
- Ethereum blockchain is able to host various other cryptocurrencies using its ERC-20 standard.
- Ethereum’s latest update, London Hard Fork was implemented to reduce the high transaction fees and enhance its scalability.
Bitcoin(BTC) vs Ethereum(ETH): What’s the Difference
|Comparison Basis||Bitcoin (BTC)||Ethereum (ETH)|
|Founders||Satoshi Nakamoto||Vitalik Buterin and Gavin Wood|
|Blockchain protocol||Bitcoin Blockchain||Ethereum Blockchain|
|Use case||The first cryptocurrency, mainly used as a digital asset today.||To host various cryptocurrencies and other decentralized applications (DApps)|
|Circulation Supply**||18,908,406.00 BTC||118,852,815.31 ETH|
|Consensus method||Proof-of-work (PoW)||PoW but soon to move to Proof-of-stake (PoS)|
MarketCap* and Circulation Supply** as of December 2021
Bitcoin vs Ethereum Price Comparsion 2021
|Prices/Month||BTC Average||BTC(ATH)||BTC(ATL)||ETH Average Price||Ethereum (ATH)||Ethereum(ATL)|
BTC vs ETH: Which is a better buy?
Both Bitcoin (BTC) and Ethereum (ETH) have been on a roller coaster ride for the year 2021. Although the current Bitcoin price is lower than its ATH for 2021, it has still grown by 300% in the entire year. The growth rate for Ethereum has also been marvelous with a rise in prices by 900% despite the massive downturn both these top cryptocurrencies have suffered.
Bitcoin is the OG (original gangster) of the cryptocurrency space. It is also the most recognized cryptocurrency of the lot. For any cryptocurrency to succeed in the long run, its widespread recognition and the services it renders play a key role. Bitcoin, being the leader in this space has more than 15000 companies accepting it as a mode payment. Although the developer behind this extraordinary digital currency is still unknown it definitely gave rise to the new financial revolution we are a part of today.
Many investors who have been holding their bitcoins for so long and are known as the Bitcoin whales, often regard this cryptocurrency as a digital asset rather than currency. Bitcoin is also considered as the “Digital Gold” by many investors. Many experts even consider Bitcoin as a deflationary currency, which means that the value of this asset shall only increase over the span of time. This gives Bitcoin an advantage over Fiat currencies that are subject to inflation. Although the crypto space is very lucrative, the only disadvantage is it is volatile. Every investment instrument is prone to volatility, however, the cryptocurrency space as believed by experts is more volatile given to its unregulated nature.
Additional Read: How to Invest in Bitcoin
Ethereum on the other hand is the second in a row to Bitcoin both in terms of technological revolution and market cap. Ethereum blockchain has its own native token called Ether (ETH). There are a variety of projects that can be hosted on Ethereum using its ERC-20 standard. Decentralized finance (DeFi) and non-fungible tokens (NFTs) also use Ethereum blockchain as their platform. It lets developers across the globe create and run their own blockchain applications. Various ERC-20 tokens such as MATIC, DOT, etc have been creating history in the blockchain space.
Ethereum works on smart contracts, digital agreements with conditions inscribed using lines of code. The smart contract has been revolutionizing various industries that have naturally given an added bonus over its competitors. Ethereum has undergone various updates in the past years with the latest update being the Ethereum London Hard Fork Upgrade and the Altair upgrade. Ethereum, just like Bitcoin would use a proof-of-work mechanism, however, has been in a constant endeavour to switch to a proof-of-stake mechanism. This mechanism will enhance its scalability and also reduce the high transaction fees required on the Ethereum network.
Both Bitcoin and Ethereum have their own advantages. It is completely on the investor’s preference and risk appetite to invest in these cryptocurrencies. We always recommend DYOR (do your own research) before investing in any cryptocurrency as they are all subjected to market risks. If you are wondering how to invest in Bitcoin or how to buy Ethereum, we have got you covered.
How to Invest in Bitcoin and Ethereum
Investing in crypto is super simple, safe, and secured with CoinDCX app. It doesn’t matter whether you want to buy bitcoin or wish to trade ethereum price today, we have got you covered.
Here are the 3 simple steps to buy your first BTC or ETH with CoinDCX.
1.Sign up on CoinDCX
2. Link your bank details
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