Now, when Bitcoin and Ethereum are the top cryptocurrencies, you might be wondering which coin is better to invest into. Both of them have perspectives and both are demanded. To understand what is more reasonable to invest in, let us have a closer look at both of them and check what their benefits are.
Bitcoin is one of the oldest cryptocurrencies that has become successful. The coin was invented or rather created in 2008, and since then, it has become one of the most popular and wished coins.
The cryptocurrency works in its own blockchain, coins are non-fungible (unique), and are intended to provide a decentralized alternative to fiat money. Every transaction is confirmed by miners. To do it, they shall solve a complex cryptographic puzzle. Once a puzzle is solved, a new coin is created and registered in the blockchain.
A limited number of coins (10 bln) can be ever mined. It creates a so-called scarcity of the asset which boosts its price.
Bitcoin was intended to be used instead of money, thus, you can buy goods and pay for services with this coin in some places. You can buy, sell, or exchange BTC to ETH or any other coin.
Ethereum is something different than just a type of cryptocurrency. Ethereum is a network running on its own blockchain. This network is powered by its own token called Ether. While Ether is considered a coin by many users, initially, it is created to enable running operations in the native Ethereum network.
The Ethereum network is aimed to power own projects that can be used for enterprises mostlyÑ
- One of such projects is known as smart contracts. They are analogs to normal contracts, legal documents that regulate relationships between parties. But their main difference from traditional contracts is in the fact that they can be edited online only. Thus, none party can modify them without letting other parties know. Moreover, when the conditions of a smart contract are met, it is executed automatically. Smart contracts allow reducing the cases of fraudsters significantly.
- Companies can build their own DApps on the Ethereum blockchain.
- Along with it, Ethereum also is known for launching one more project called Decentralized Finances or DeFi.
It means that even if a cryptocurrency might fail as money, Ethereum still has all the chances to stay. Moreover, it will be developing its infrastructure more because for now, the full potential of blockchain isn’t explored yet. Consider it when you are going to buy ETH on LetsExchange.io or any other platform.
Bitcoin and Ethereum were created in different ways, for different purposes, and by using a different approach. Whatever you choose, each coin has its pros and cons, and each coin has potential in its own special niche. For now, we can tell one thing only: Bitcoin is and looks like is going to remain one of the major cryptocurrencies in the world. No other coin can replace it for now. On the other side, Ethereum has taken a different path and is a leader there.