Many doubt that a better cryptocurrency can be created than Bitcoin. It represents an innovative payment network and a new kind of money. Implemented the idea of Bitcoin Satoshi Nakamoto.
Bitcoin is based on blockchain, cryptocurrency has the following advantages:
- The ability to use electronic money both online and offline.
- The state does not regulate and does not control the release of bitcoins, it cannot dictate conditions to their holders.
- It is convenient to work with BTC. It will take just a few minutes to send money to the other side of the world.
Ethereum is a cryptocurrency often referred to as a replacement for Bitcoin. It has the following advantages:
- Mining is easier than Bitcoin. This means that people do not have to be in pools to mine cryptocurrency. They will not have to divide it equally among the participants.
- Ethereum’s block is optimized several times better than the Bitcoin block. If the transaction speed for bitcoin is on average 2 minutes, then for Ethereum – 12 seconds.
- ETH has its Ghost protocol. Because of this, even outdated resolved blocks continue to generate income for the owner.
- For each block solved, the miner receives income that does not decrease over time. For Bitcoin, the opposite is true: every 4 years, income is reduced by 3 times.
Ethereum is used by programmers for cryptography and centralization, and ether is also popular among optimizers. This means that the demand for crypto coins will be supported by programmers, optimizers, and other people working with smart contracts and businessmen.
Ether is not at all like the popular bitcoin; you can create decentralized projects on the platform. The Ethereum network became available for use in 2013, founded by Vitaliev Buterin and Gavin Wood.
The technology turned out to be promising, so investors are actively investing in it. They often compared Bitcoin vs Ethereum, trying to determine the prospects for the development of networks. After 1.5 months from the date of opening, while the sale of shares was carried out, the developers received about $ 18 million.
Bitcoin advantages
Bitcoin became the first cryptocurrency, which influenced its popularity. This supported the demand for the coins. The ability to generate passive income by increasing the value of the crypt provides a constant demand.
There are other advantages of coins:
- They were bought by banks and large investors, so bitcoins cannot quickly fall in price. They can be classified as reliable assets.
- Coins are accepted by trading platforms, exchanges, online stores, and payment systems that work with them. In some countries, BTC can be used to pay for studies or buy a car or real estate. This is more and more fueling demand and allows you to quickly conduct transactions, sell and buy cryptocurrency.
- Bitcoins can be exchanged for fiat money. Already in many countries, terminals have been installed for their “cashing out”.
- BTC is open source.
- The use of cryptocurrency assumes anonymity. You do not need to enter personal data, just dial the bitcoin wallet number.
- High transaction speed.
- Low transfer fees compared to standard money transfers. Bitcoin transaction fees do not depend on the amount transferred, but solely on the amount of data transferred.
The issue of coins is limited, in total, you can mine 21 million. Even when bitcoin was created, the developers introduced a rule that coins that were out of circulation would not be reintroduced into the system. Therefore, there will be no oversupply of cryptocurrency, and the withdrawal of bitcoins from circulation further increases the deficit, increasing the cost.
Members are not categorized as card users. Payment systems issue credit cards of various denominations, for example, platinum, gold, or black. Bitcoin holders are on a level playing field.
Difference between Bitcoin and Ethereum
Investors who are just getting started with cryptocurrencies compare Bitcoin vs Ethereum. They believe that they are not much different from each other. The only criterion by which they can evaluate virtual coins is their value.
But ether differs from bitcoin in many ways. The difference lies not only in the technical plane but also in the realm of opportunities that people can take advantage of.
To compare Bitcoin and Ethereum, it is worth paying attention to the technology of issuing cryptocurrencies, the number of coins, and the methods of their production.
