It has been a decade since the cryptocurrencies have been making the headlines. Be it college or office; you must have come across the term “cryptocurrency”. The next question that follows “What is it?”.
Answering these, cryptocurrencies are the digital money that is providing people with a new medium to transact without any third-party supervision. They work using the blockchains that add security to the transactions. A digital wallet is required to use these cryptocurrencies which one can get by approaching the Bitcoin wallet app development company.
Investment on Cryptocurrencies: Bitcoin or Ether
Depending on the type of usage and strategies, people are investing in Bitcoin and Ether. Bitcoin as a cryptocurrency can be used for transactions and is beneficial even while travelling internationally as unlike fiat currencies, the value of Bitcoin remains the same and is accepted globally. On the other side, the Ethereum is more than just a cryptocurrency. It is a technology and provides leverage for the developers to build decentralized applications. Investing in either of them has its own sets of pros and cons.
Bitcoin MLM software helps you in getting started with these cryptocurrencies.
Features of Bitcoin
Bitcoin is the accidental result of the research of Satoshi Nakamoto (yet unknown). It is a type of digital currency. It is used for transactions and what makes it popular is the fact that there will only be a limited number of Bitcoins in the market.
Advantage of Bitcoin: There are many advantages that the user experiences with Bitcoin, making it a popular cryptocurrency.
- Scarcity- The Bitcoin being scarce makes it a valuable cryptocurrency. The total number of Bitcoins in the market is limited to only 21 million.
- Liquid asset- When compared to other digital currencies, Bitcoin can be easily exchanged for fiat currencies making it more preferable.
- Wide acceptance- These currencies are readily accepted in the market. Hence, making it an excellent option to invest for long term or using it for day to day transactions.
- Low transaction fee- The processing fee charged while transacting with Bitcoin is comparatively less as compared to traditional methods that are used.
- No tracking- Bitcoin offers you the freedom of transacting without getting tracked by the third party. After attempts, they may see the number of transactions done, but the identity of the parties remains disguised.
Features of Ethereum
Having introduced by the Ethereum foundation, it is a platform that allows its users not only to trade using Ether but adding more to it; it is a technology. It is also based on the concept of blockchain. Nodes have to be mined for the transaction to get complete.
Not just that, Etherum is a technology behind which there is a tie-up of 500 companies that are working in an alliance to improvise its functioning that helps in providing the users with a smooth experience.
Advantage of Ethereum: The concept of Ethereum is different when compared with other cryptocurrencies. There are numerous advantages associated with Ethereum.
- Inducements- On account of verification, users get incentives, unlike other cryptocurrencies.
- Privacy- Like other famous cryptocurrencies, Ethereum as a platform also promotes privacy. A group of companies can transact on private networks hence making it immune to outside intervention.
- Short block time- Ethereum advantage over its counterpart is that it has shorter block time which eventually cuts short the time consumed in creating new blocks hence promoting quick transactions.
- More availability- The fact that an equal amount of Ether is released every year in the market ensures convenience to users.
- Applications- Being a technology, Ethereum provides computer application platforms. Adding to it, a lot of projects in collaboration with the leading companies are on its way, making it a good investment option.
Final Verdict
Selecting between the two that is Ethereum or Bitcoin requires a good amount of research of their current market as well as their future demand and value. Bitcoin wallet app development is the first step in the process and will let you get your hands on their cryptocurrencies.
Bitcoin and Ethereum have very different purposes!
Ethereum’s purpose is to offer and run decentralized smart-contract applications powered by blockchain technology that does not go offline and cannot be altered. It provides users with a platform and programming language to build the applications on.
Bitcoin’s purpose, however, is largely different. It serves as a decentralized store of value— a peer-to-peer digital currency, used for financial transactions. It eliminates the need for third parties in payment technology.
In conclusion, the primary differences that separate Ethereum vs Bitcoin are their purposes and their concepts. Also, Ethereum’s blockchain runs smart contracts Bitcoin doesn’t and instead only focuses on manual payment technology.
It’s clear that there are benefits to using both Bitcoin and Ethereum. Bitcoin has a lower coin supply and is more liquid than Ethereum, but Ethereum has better technology and provides more uses than Bitcoin does.
Based on the fact Ethereum has more use cases than Bitcoin —and, therefore, serves a bigger purpose— I can say that it is indeed an overall better Bitcoin alternative.
Thank you for shring this great blog.