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Ethereum or Bitcoin

By December 14, 2021 June 1st, 2022 No Comments

Both Bitcoin and Ethereum are both a part of the crypto world where digital currency is used for peer-to-peer transactions without the use of central banks, and many of the laws that restrict actions and development.

There are similarities and differences between the two with both playing a bigger role in daily business in the future. As with traditional stocks or currencies, the value and price of both can change rapidly and may depend on the volume of trading for that day. Bitcoin’s price is determined or influenced by supply, demand, and government regulations.

What is Bitcoin?

Bitcoin is one of the many types of digital assets. It does not use a central bank, central authority, and does not function under a single administration. Like others, Bitcoin:

  • Can be used for peer-to-peer transactions with little to no fees.
  • Is not issued by a government.
  • Is only taxable if a profit is made from its sale or trade into traditional asset types.
  • Is kept in a digital system called a blockchain.
  • Has a capped amount of available Bitcoin.

 

What is Ethereum?

Ethereum is both the second largest cryptocurrency and more than just a cryptocurrency. Ethereum launched in July 2015. It is an open software platform that can be used in similar ways to Bitcoin.

  • Ethereum allows anyone to use the software to build apps for fun, finance, or social media
  • The platform is meant to avoid problems with censorship
  • Identifying data is not required to access Ethereum so there are fewer problems with malicious actors like hackers and identity thieves.
  • ETH is the cryptocurrency used on the platform.
  • The Ethereum blockchain stores transaction records for Ether currency and it allows developers to create games and apps.

Bitcoin vs Ethereum: What are the Main Similarities Between Ethereum and Bitcoin?

Both of these popular cryptocurrencies share a number of aspects that are very similar.

  • Both are a decentralized platform meaning no single person has all the control. Control rests with a group of users.
  • Both are traded solely online with no physical coin.
  • Both can be used for various transactions via other pay platforms.
  • Both use account and ledger systems called a wallet.
  • Both have a variety of wallet types that can be used.
  • Both are accessible to new traders.
  • Both use blockchain technology.
  • Until 2022, both used a system called Proof of Work or PoW.
  • Neither relies on government or central banking.
  • Both are highly sought after by crypto investors.

Bitcoin vs Ethereum: What are the Main Differences Between Ethereum and Bitcoin?

There are several differences between Ethereum and Bitcoin including the former’s change from Proof of Work (PoW) to a more manageable system called Proof of Stake (PoS) in the year 2022.

  • Bitcoin is mainly just a digital currency while Ethereum enables the development of apps by anyone with open source software;
  • Ethereum is far faster at a rate of 10-15 transactions completed per second.
  • Bitcoin’s rate of completion is 3-5 transactions per second.

 

Is it Better to Buy Bitcoin or Ethereum?

Most experts suggest that it is not better to buy either Bitcoin or Ethereum alone but rather to buy a combination of the two instead. Investment advice from The Motley Fool suggests that Bitcoin may be a better buy on cryptocurrency exchanges because:

  • Bitcoin is more established.
  • Bitcoin is currently more secure.
  • Bitcoin is considered to be the most mainstream of the cryptocurrencies and is accepted in more places at this time. The Bitcoin network is larger.

Ethereum is still a worthy investment and may have a bigger payoff for those willing to take the slightly higher risk by dabbling with the Ethereum network.

 

Can Ethereum Beat Bitcoin?

In terms of investing, Ethereum could potentially beat Bitcoin because it offers more than just digital currency. In terms of popularity, right now the cards are stacked for Bitcoin. If you say “crypto”, Bitcoin is the first thing that comes to mind. The Ethereum platform is definitely gaining traction though.

 

Is Ethereum More Important than Bitcoin?

Ethereum is faster and more versatile than Bitcoin and may be considered to be more important in terms of what it can do. Because it uses a different type of computing power for mining, it is considered to be superior for the environment. Ethereum’s decentralized network means it is more than just a potential replacement for currencies if something happens to the world economy.

 

How Many Bitcoin Are Left?

There are just over 2 million Bitcoin left that are not yet mined. There are also a number of coins that will be lost for reasons including technological glitches (computer crashes, for example) and lost keys. Bitcoins use 2 types of keys for access: public and private.

A public key is similar to a bank account number. A private key would be similar to your ATM pin.

 

How Many Ethereum Are Left?

There are approximately 119 million ETH remaining. The number could change dramatically when Ethereum makes the change from PoW to PoS in the coming year.

 

Which is More Profitable: Bitcoin or Ethereum?

Currently, the more profitable crypto type is Bitcoin.

  • Bitcoin is better known by even novice investors
  • Most crypto news is related to Bitcoin for one reason or another
  • More big names are associated with Bitcoin news which may drive up prices and demand

 

Is Ethereum Better than Bitcoin for 2022? 

Because of the coming changes to the Ethereum network as well as an increased acceptance of all digital currencies, competition between the two may become even more fierce. Traditional currency’s decreasing performance and value may also increase the demand for crypto as inflation grows and the job market becomes stronger.

 

Final Thoughts on Ethereum vs Bitcoin

Both Ethereum and Bitcoin have their pros and cons. Both can be a solid investment opportunity provided that you have a general understanding of crypto assets. Before getting into the risky financial waters of investing, it is important to learn what you can. Open a Robinhood account and earn $30 cashback from Swagbucks plus get a sign-up reward as well. Sign up for Robinhood and get $30 free now.

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