Bitcoin and Ethereum are among two of the most popular cryptocurrencies, but what are the main differences between the two, and which one should you invest in?
Their age is one of the biggest differences. Bitcoin was the original cryptocurrency that hit the markets in 2009, yet Ethereum showed up six years later in 2015 as a potential alternative.
STORE OF VALUE
Let’s take a look at their storing value. Between the two, the clear winner has to be Bitcoin. It is the most valuable coin in the world, and has definitely proven itself. This is likely to be down to the fact that it is far more recognisable than its peers, which makes it easier to buy, store and sell.
AS A TRASACTIONAL MEDIUM
Ether has to take this one. In 2017, it overtook Bitcoin in the number of daily transactions, and this really doesn’t show any signs of slowing down, or even stopping.
This is down to the fact that Ethereum can be used as a platform for other cryptocurrencies and it tends to be confirmed quicker by the blockchain thanks to the fact that it has been built much more efficiently than blockchain.
The fees are also much lower, which makes it a more appealing virtual currency for transactions.
EMPOWERING OTHERS
The uses of the two currencies are actually very different. Most notably the technology differs completely. If we are being technical, Ethereum is not actually a cryptocurrency, rather a blockchain technology that allows people to transfer Ether, but can also be used to create other cryptocurrencies.
Bitcoin supports simple scripting, whilst Ethereum can handle much more complexity, because of its smart contract system.
IS ONE BETTER THAN THE OTHER?
The quick answer is no. Bitcoin and Ethereum both have their advantages, and deciding on which would be best for you would depend on your financial situation and what you actually want to get out of your investment.
Bitcoin is perfect is you are looking for a proven cryptocurrency with the most developer support, but if you are looking for one that allows you to make regular transactions, Ethereum is much more suited to your needs.
Before you invest your money in either, it is important that you do your research first, so you can make sensible and informed choices.