There are many benefits to using cryptocurrency. There are also many different types of cryptocurrencies. Bitcoin is the most common type of cryptocurrency, but Ethereum is catching up quickly. When deciding which one to use, you should consider what features are important for your needs.
The more you learn about these two cryptocurrencies, the better prepared you’ll be in making the right choice for you. Here are some important differences between Bitcoin and Ethereum that may help you make a decision on which one to use.
What is bitcoin?
Bitcoin is a form of digital currency. It was established in 2009 and is the first cryptocurrency to reach mainstream adoption. Bitcoin set up the blockchain, which is a public ledger of all transactions ever made on it.
What is Ethereum?
Ethereum is a cryptocurrency, similar to Bitcoin. However, there are two significant differences between the two.
The first major difference is that Ethereum can be used to create applications. It was built to allow developers to build any type of application without worrying about a single language being a bottleneck. Ethereum also has its own programming language called Solidity.
The second big difference is that Ethereum transactions happen much faster than Bitcoin transactions. One of the main selling points of Ethereum is speed and the time it takes for transactions to be recorded on the blockchain (many minutes). In contrast, Bitcoin transactions take about 10 minutes.
Basic features of Bitcoin vs Ethereum
Bitcoin is a digital currency that has been around since 2009. Bitcoin is decentralized, which means it doesn’t have a central bank or any regulatory authority. Bitcoin uses blockchain technology to process transactions without the need for a third party. Bitcoin transactions are fast and inexpensive. Bitcoin’s supply is limited to 21 million bitcoins, which will be reached by 2140.
Ethereum is a newer cryptocurrency that was developed in 2015. Ethereum is more than just a digital currency, it’s also a platform for running smart contracts and decentralized applications (DApps). Cryptocurrency mining features heavily in Ethereum’s design and construction.
The cryptocurrency market has been growing rapidly over the past few years with new cryptocurrencies emerging all the time. Bitcoin may be on its way out as Ethereum becomes the new favorite cryptocurrency amongst investors and developers due to its efficiency and popularity with programmers.
Either way, there are many benefits to using cryptocurrency for your business needs, no matter which one you choose!
Basic features of Ethereum
Ethereum differs from Bitcoin for many reasons, but one of the biggest is that Ethereum operates on a blockchain system. The Ethereum blockchain doesn’t use Bitcoins to process transactions. Instead, they use Ether. Ethereum also has smart contracts, which are like contracts in real life, except you don’t need a third party to enforce the agreement.
Ethereum’s block time is significantly shorter than Bitcoin’s. Bitcoin takes approximately 10 minutes for each block; Ethereum takes around 14 seconds to process a block. As well, Ethereum has lower transaction fees than Bitcoin. The average cost of a Bitcoin transaction is $1.84, while an Ethereum transaction ranges between $0 and $0.09 (though it can be much higher).
How to buy Bitcoin
To buy Bitcoin, the first thing you’ll need to do is set up a Bitcoin wallet. Your Bitcoin wallet is much like your online bank account. You can store your cryptocurrency here and use it to buy other cryptocurrencies or make purchases with it. Buying Bitcoin is as easy as setting up your wallet and linking it to an exchange.
There are many exchanges, but Coinbase is the most common. When you set up an account with them, they will give you a link that allows you to connect your bank account for buying and selling cryptocurrencies. There are also other networks that allow you to purchase bitcoins, like LocalBitcoins or Bitstamp (Europe).
How to buy Ethereum
Ethereum is often called “Bitcoin 2.0” because it offers more features than Bitcoin. You can buy Ethereum with fiat currency or you can purchase it with Bitcoin. There are also other ways to get hold of Ethereum, but the easiest way to do so is by using an exchange.
If you want to buy Ethereum for fiat currency, you need first to purchase Bitcoin and then trade them on the exchange for Ethereum. If you have Bitcoin, you can just go straight to the exchange and trade them for Ethereum.
Now that you know how to buy both coins, let’s look at what features they offer.
What is the value of Bitcoin and Ethereum?
Bitcoin is the most common type of cryptocurrency. It was created in 2009 with the intention of being a currency, but it has grown to be so much more than that. The value of Bitcoin changes based on the demand for it. That means that if there are many people buying Bitcoin, then the price will increase while if there are many people selling, then the value will decrease.
Ethereum has a different approach to its price. Ethereum is a decentralized platform for applications and contracts. Its main purpose is to allow applications to run without downtime, censorship, fraud, or third-party interference.
Ethereum coins can be used as payment for any application or contract on the blockchain which limits their volatility because they have a steady stream of buyers without any single buyer or seller dominating the market.
Bitcoin and Ethereum Compared
Bitcoin was the first cryptocurrency ever created, and it is still the most popular. It was designed to be a decentralized form of “electronic cash” that could be used without relying on specific banks or financial institutions.
Ethereum is another type of cryptocurrency that’s popular among digital currency enthusiasts. It is an open-ended decentralized software platform that utilizes blockchain technology for more than just monetary transactions.
Bitcoin Pros and Cons
Bitcoin has been around for a while now. In fact, it was the first type of cryptocurrency to ever exist. As a result, Bitcoin is the most popular type of cryptocurrency today. However, it’s important to understand that Bitcoin isn’t perfect.
For one, it is difficult for businesses to accept Bitcoin because there are so many technological requirements in order to use it. Additionally, transactions using Bitcoin can be slow and costly. A transaction that would normally take seconds or minutes with traditional methods may take up to 10 minutes with Bitcoin. Additionally, these transactions can cost anywhere from $4-30 per transaction – plus they require payment processing fees down the line.
So what about Ethereum? Ethereum was developed primarily as a means of transferring value without any intermediaries or centralized governance structures. It is “a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.”
What does this mean for you? This means your transactions will be faster and cheaper than if processed using traditional methods or Bitcoins. Plus because there are no intermediaries involved in transactions using Ethereum, there are no additional fees attached.
That being said, you do have to pay miners who process your transactions but their fees are comparatively lower than other types of digital currency processing fees (or even credit card processing).
Ethereum Pros and Cons
Ethereum is one of the leading cryptocurrencies. It has many benefits, but it also has some cons.
Ethereum offers more than just currency. Ethereum offers smart contracts, which are agreements between two or more parties that are digitally embedded in the blockchain ensuring all parties follow through on their promises.
Another benefit of Ethereum is that you can store other types of data in the blockchain, like music and work as art. You can’t do this with Bitcoin.
Ethereum is young compared to Bitcoin, so there are fewer users and less capital behind it right now. This means that there’s less demand for Ethereum in the market and the price could drop if the coin becomes overvalued in the future.