How is Bitcoin compared to Ethereum? “What should I choose?” Is BTC better than ETH?
Ethereum has experienced a lot of attention after its announcement at the North American Bitcoin Conference in early 2014 by Vitalik Buterin. The open consequence of its rising popularity has been its constant comparison to Bitcoin, the first virtual currency. It is necessary for investors to understand the similarities and differences between Bitcoin and Ethereum.
Bitcoin (BTC) Vs. Ethereum (ETH)
Let’s see the difference between Bitcoin and Ethereum.
Bitcoin is a cryptocurrency and global payment system. It is the primary decentralized digital currency, as the system works without a central bank or single administrator. It works on top of a ledger recording technology known as blockchain. Bitcoin first virtual currency was born nine years back in 2008. It introduced a novel idea set out in a white paper by the mysterious Satoshi Nakamoto.
- Freedom of Payment: With Bitcoin, it is likely to be able to send and receive money anyplace in the world at any given time.
- Information is Transparent: With the blockchain, all finalized transactions are available for everyone to see, however, personal information is hidden.All this processing makes the technology very slow and not efficiently scalable compared to more traditional financial systems like banks and credit/debit cards. Bitcoin is a prolonged process that it can only manage a few thousands transaction in a day. The reason is that of its comparatively smaller network, and with time things will just get worse.
Some of the disadvantages of Bitcoin is that;
- Risk and Volatility: Bitcoin has volatility mainly because there is an inadequate amount of coins and the demand for them grows by each passing day, assumed that volatility would decrease as time goes on.
- Still Developing: Bitcoin is yet at its infancy stage with incomplete characteristics that are in development. It has some growth to do before it comes to its full and final potential.
Ethereum is an open-source, public, blockchain-based distributed computing platform and operating system featuring smart contract functionality. It supports a revised version of Nakamoto agreement via transaction based state transitions. Like Bitcoin, Ethereum is a distributed public blockchain network. Ethereum blockchain focuses on running the programming code of any decentralized application.
- Ethereum uses the turing language on the blockchain. Etherium allows the exchange of complicated or straightforward contracts on the network which enables the elimination of third parties.
- Ethereum has the backing from corporate clients, and in recent days the price of its cryptocurrency ETH has rocketed. The Ethereum Enterprise Alliance (EEA) is working with dozens of enterprise-grade companies in all verticals from banking to healthcare.
With other cryptocurrencies, the validity of each ether is provided by a blockchain which is a continuously growing list of records, called blocks, which are linked and secured using cryptography. By design, the blockchain is inherently resistant to modification of the data.
- Bottom dollar: Ethereum is a platform, and thus will never be seen as efficient as other faster blockchains. Many complain at the speed of transactions for its cryptocurrency ETH
- The worst thing I find about Ethereum is the lack of documentation to help people become Ethereum developers. Most of the online content is out of date and only covers the basics.
Future of Bitcoin and Etherium
- At present, it looks as if Ethereum and its associated fuel “Ether” have unlimited adoption potential in the decades ahead.
- On the other hand, Bitcoin must develop more and must find out a solution to improve its speed as it has to compete with the speed of Credit/Debit card
Final Thoughts On BTC vs. ETH
Bitcoin and Ethereum are different versions using the blockchain technology and are set to establish themselves, driven by different intentions. Both have bright future in a different region and should develop more for a better outcome.