Bitcoin is the Coca-Cola of the market and Ethereum is Pepsi.
Ask the vast majority of people, “What’s the first thing that comes to mind when you think about cryptocurrency?” If asked, “The answer to this question would not be surprisingly “Bitcoin”. Everyone says “Bitcoin” because it is widely viewed as the best digital currency and shapes what the general public recognizes as cryptocurrencies.
So, what about Ethereum? Bitcoin is not alone as Ethereum is another popular cryptocurrency that has successfully risen to become a constant subject of comparison to Bitcoin. Ethereum has also been widely recognized by the public lately.
The best way to describe the relationship between the two is that Bitcoin is the Coca-Cola of the market and Ethereum is Pepsi. Some people prefer one over the other.
The frequently asked question is which of these cryptos is the better investment. It would be easy to answer this simply by looking at the current Bitcoin and Ethereum price, but cryptocurrency is notorious for being volatile. Knowing the prices is not enough; There are more factors to consider.
Main differences of Bitcoin and Ethereum
Bitcoin and Ether (Ethereum’s cryptocurrency) share quite a few similarities, of which it is obvious that both are digital currencies. They can be sold through online exchanges and stored in a number of crypto wallets. Both cryptocurrencies are decentralized, meaning a central bank or other authority does not issue or regulate them and often uses blockchain technology.
However, despite all their similarities, there are many differences between the two that make them separate entities. Bitcoin is a peer-to-peer electronic cash system that operates securely without the involvement of a central authority figure.
It wasn’t the first time the concept of a decentralized form of money had been considered, but it was the first time the idea had gained some value. The value of all other cryptos (like Ether) often moves with Bitcoin, and Bitcoin is still traded far more than any other crypto.
The main purpose of Bitcoin was to establish itself as a valuable alternative to fiat currencies backed by countries. In other words, traditional currency. First and foremost, it is a medium of exchange and a store of value.
As mentioned earlier, Ethereum is not technically a cryptocurrency. In reality, Ether is cryptocurrency and Ethereum is the platform on which Ether is based; this is a common misconception.
The purpose of Ethereum’s launch in 2015 was to serve as an upgrade to Bitcoin’s weaknesses. Use cases offer developers more opportunities to develop new applications, and in doing so, it’s become a formidable competitor to its own business and boot.
To summarize the differences, Bitcoin is a cryptocurrency and Ethereum is a platform and Ether is the real cryptocurrency. Bitcoin transactions are mostly monetary, while Ethereum transactions are usually executable code.
Transactions on the Ethereum network are much faster than those of Bitcoin. For the most part, Bitcoin functions as a store of value and medium of exchange; Ethereum doesn’t do that. Its creation stemmed from a desire to compliment Bitcoin, but ironically it continued to rival.
Which might be a better choice?
If an investor wants a cryptocurrency they can buy and forget, Bitcoin would be the better option as it has proven to be a reliable store of value. However, if the goal is to earn cryptocurrencies that investors are likely to use, Ethereum is the best choice.
Ethereum has the potential to deliver even greater gains. While Ethereum is closing a year with much less than Bitcoin, investors will quadruple their investment if it hits an all-time high. In the case of Bitcoin, if it hits an all-time high, investors won’t even be able to double their money.
Finally, there is a consensus among crypto investors, entrepreneurs, and experts who are more knowledgeable on the subject. They believe that Bitcoin is a better buy than Ethereum. However, while not as coveted as Bitcoin, there are plenty of Ethereum supporters who claim that Ethereum could work well in the long run. The decision is ultimately up to the investor. There are pros and cons; It is up to them to decide which one is more suitable for them.
Visits: 62
