A simple comparison between Bitcoin and Ethereum
Over a decade ago, Bitcoin was introduced to the world; it was received with a lot of resistance from critics and skeptics. However, it was able to surmount the challenges and grow to become the most valuable cryptocurrency so far. The advent of Bitcoin indicated the start of a revolution in the financial world since it offered a peer-to-peer electronic cash system to allow online payments from one party to another, without the need for a financial institution.
Bitcoin is a peer-to-peer digital currency created by a person or group of persons with the pseudonym “Satoshi Nakamoto” and was made public in 2009. Built on a source code comprising cryptographic algorithms, making it impossible for duplication and unauthorized creation of the coins. Bitcoin has some features that make it unique, and they include:
- Quick transactions
- Mobile payments
- Low transaction fees
- Cross border transactions
- Global acceptance
Pros of Bitcoin
- Global acceptance
- Decentralized system
- Easy and quick cross border transactions
- Availability of better liquidity
- Anonymity and privacy
Cons of Bitcoin
- Bitcoin is susceptible to high volatility in price.
- Scalability problems.
- It is not a facilitator for decentralized applications.
Vitalik Buterin, the creator of Ethereum, knew that there was more to the blockchain technology than the underlying power for Bitcoin. He was aware that there were some irregularities with the Bitcoin blockchain that needed some corrections. He created the Ethereum blockchain and gave the world a valuable platform that offers a cryptocurrency and functions as an operating system that facilitates the creation of decentralized applications (DApps), as well as enabling the creation of tokens for different applications and purposes. Apart from the essential features that come with the blockchain technology, Ethereum also has some other special features that are not available on the Bitcoin blockchain:
- Creation and implementation of Smart Contracts.
- Creation of decentralized applications (DApps)
- Facilitator of Decentralized Finance (DeFi)
Pros of Ethereum
- The Ethereum blockchain has a strong backing that includes contributions from big companies like JP Morgan, ING, and Toyota.
- Flexibility allows developers to create and share decentralized applications on the Ethereum blockchain.
- Exponential growth
- It has more scalability than Bitcoin
- High authenticity and acceptance across the crypto community
Cons of Ethereum
- Delay in processes.
Bitcoin has more liquidity than Ethereum, but Ethereum’s technology makes it a better option to facilitate the creation of different applications and use cases. The diversity of Ethereum has made it a more preferred choice for many people, and a better alternative than Bitcoin. Creating diverse options for investment in Ethereum gives it an edge over Bitcoin, making it a significant competitor to Bitcoin.
If you are looking to invest in a coin with more liquidity and less market supply, then Bitcoin is the coin for you. Still, if you are looking at something more exciting that offers exponential growth, then Ethereum may be the one to consider.