As if you are familiar with the crypto market you should have probably heard about the two giants in crypto Market i.e. Bitcoin and Ethereum.
As they are summed up as giant in crypto market they are often compared to each other. Although,they are from a complete different history and mechanism and how they work.
The Bitcoin and Ethereum, possess of two cryptocurrencies bitcoin and Ether. We generally refer bitcoin As BTC and Ether as ETH.
BTC ETH
Founded 2009 2015
Market cap $US443 bn $US186
Price $US23,000 $US1500
Mechanism Proof of work
Proof of stake
Block time10 minutes 12-14 seconds
Max supply 21 million Unlimited
BTC was considered to be founded in 2009 by a person named satoshi nakamoto.He is famous for implementing first Blockchain Technology.
While ETH is developed by Vitalik Buterin in 2015.
Market Cap of BTC is nearly doubled that that of ETH in 2022.The maximum Supply of BTC is 21 Million making it scarce. While Supply of ETH is Unlimited but developers are concerned while increasing its supply so its a good side of cryptocurrencies.
The current price of BTC is $US23,000 while ETH is $US1500.
The consensus mechanisms of both crypto differs from each other.As Bitcoin work in Proof of work while ETH works on Proof of stake.
The main difference between BTC and ETH is that the BlockTime of BTC is much slower than that of ETH having 10 minutes for BTC and 12-14 seconds for ETH.
History
Bitcoin (BTC) is the largest of the crypto coins and has the highest value by market cap at $US367 billion. It was also the first cryptocurrency to appear on the market, and at one point was worth more than a trillion dollars. BTC reached a high of almost $69,000 in November 2021, but the following May dropped below $US20,000. By September, BTC was hovering above the $US20,000 mark. Ethereum is the the second-largest cryptocurrency with a market capitalisation at $US198 billion and as of September was worth $US1620. It peaked at around $US4800 in November 2021.
Difference
Both Bitcoin and Ethereum systems use blockchain technology to perform their functions, but these functions are somewhat different. Bitcoin is first and foremost a decentralised payment system, designed to take out the middle man from transactions, through peer-to-peer technology. While Ethereum does enable payments using its internal ETH cryptocurrency, it was designed to facilitate apps and smart contracts.
They also use different consensus mechanisms. While Bitcoin’s uses what is known as proof of work, Ethereum is moving towards a proof of stake consensus mechanism.