Crypto Academy Week 7 - Homework Post for @besticofinder submitted by @salmanwains

First of all I'm really thankful to @steemitblog , @steemcurator01, @steemcurator02 and all the professors of SteemitCryptoAcademy specially Professor @besticofinder. We are learning a lot from these lessons started by the Steemit Crypto Academy Team.

In this week 7 lecture of Professor besticofinder, we got to understand that "How to invest in Cryptocurrencies?" , What is Market Capitalization and how to calculate it? What is Liquidity? What are active addresses and how did they affect the stability of a network in market?

Now, Let's move forward to the Homework Task assigned by professor besticofinder

You need to select two crypto currencies and do a fundamental analysis comparing each other. When selecting the two crypto currencies try to compare two currencies which are competitors to each other ( Optional) Compare the factors we discussed in lecture 6 and this lecture 7 decide which will be the best investment option. ( coinmarketcap.com : Token Rank Should be between 100 - 400 range )
1. Read the project whitepaper and compare the concept
2. Compare the social reach , project purpose , team , response from the market
3. Compare Market capitalization, Liquidity and trading volume, Circulating supply , Active addresses , Maximum supply, Transaction count etc.
Decide which coin will be the better currency form the selected two currencies. Support your decision with above facts

So, for the homework Task, I will compare Bitcoin (ranked number 1) and Ethereum (ranked number 2)to see which currency is best (by considering the factors mentioned by Professor)for investment.

Comparison of Bitcoin and Ethereum

There are lot of cryptocurrencies which are working on blockchain technology. But Bitcoin was the first and is now the most common cryptocurrency. It allows two parties to transfer money electronically without the use of a third party.

Following the introduction of Bitcoin, new cryptocurrency such as Ethereum and Litecoin were also developed using the same principles. Blockchains for both Bitcoin and Ethereum are different. In the past few years, Cryptocurrencies are steadily growing and now the total number of cryptocurrencies are more than 1500.

But today we will discuss & compare only Bitcoin and Ethereum. Both these currencies are best in their own. But here we will compare them with different factors.

Factor	Bitcoin	Ethereum
Market Capitalization	$1.037 T	$195 B
Liquidity	$1.581 B	$803 M
Circulating supply	18.667 M	115.235 M and the max
Active address	There are only between 400,000 and 800,000 active addresses per day (source)	379,249 (source) active addresses on the Ethereum network in 2020
Maximum Supply	21 million	---
Transactions	Daily transactions around 400,000 (source)	Daily transactions around 1.266 M (source)

Ethereum is advanced version of bitcoin. The common characteristics of Ethereum and Bitcoin were compared above, and it is shown that Ethereum is faster than bitcoin. In comparison to bitcoin, which was introduced in 2009, Ethereum is 6 years younger and was designed in 2015.

Ethereum transaction fee is also very less as compared to Bitcoin transaction fees. The processing speed of Ethereum is higher than that of bitcoin. Bitcoin is just money, while Ethereum is a blockchain that companies use to create new programs.

As we seen above in the table that Ethereum is processing over 1.266 million transaction per day and this is more than Three times the amount of daily transactions seen by the more well-known competitor Bitcoin, which is only processing almost 400,000 transactions per day.

The Supply of Bitcoin is Limited to 21 Million and the circulation supply is 18.667 million But on the other hand, there is no limit on the cap of Ethereum and it's circulating supply is increasing every year as more companies are using Ethereum for their programs, right now the circulating supply of Ethereum is 115.235 M.

So, according to my experience, knowledge and above mentioned factors, we can say that Ethereum is better than bitcoin as because of it's speed and low transaction fee and companies are using it for their programs. So, I would invest in Ethereum as it looks like it's price will rise and it will be a good investment for Future (Just because more companies will start using it due to it's speed & fee etc.)

Disclaimer: I'm not a Cryptocurrency expert, I'm just learning the basics of Cryptocurrency, blockchains and what factors measure the price of a coin. Again, I'm not a an expert at it, I just explained everything according to the knowledge I gained from the Week 7 lecture and I hope our professor @besticofinder liked my post about the task he assigned to us.

References: Coinmarketcap , Bitcoinist , besticofinder