Bitcoin and Ethereum are considered the Coca-Cola and Pepsi of the crypto world and are number one and two in the top currencies list of cryptocurrency applications such as this trading platform. Both these cryptocurrencies are highly competitive and often face comparison.
Bitcoin vs. Ethereum
The argument between Bitcoin & Ethereum is gaining more and more popularity day by day. Bitcoin is the most influential digital currency and has the highest market cap among all the cryptocurrencies circulating globally. On the other hand, Ethereum has also revolutionized the crypto world. Its owner designed it in a way that it has more features than Bitcoin, even if it is created on the Bitcoin model. That is why; it is the second champion in the top cryptocurrencies list.
Bitcoin is the base of cryptocurrency as it was the 1st one on the list and was developed in 2009 by Satoshi Nakamoto. It is still a mystery whether this is a person or a group of people and whether the person or the group is still alive or expired.
The owner of Ethereum is not anonymous as it was established by a researcher and programmer, Vitalik Buterin, in 2015. He utilized the concept of blockchain and added some extra functions like App development and Smart Contracts.
Bitcoin contains peer-to-peer transactions. It is a substitute for fiat money, but it does not resolve all the problems related to fiat money. Transaction costs are low, and there is no need to get permission from any central authority to operate Bitcoin.
Ethereum also contains peer-to-peer transactions, but its additional feature is to provide a platform for the users to build Smart Contracts and Dapps. Smart Contracts facilitate users to exchange things other than money as well. (Shares, Real Estate)
To mine Bitcoin, the proof of work method applies for validating the transactions. In this method, miners try to solve complex mathematical problems for the addition of blocks to the blockchain.
In Ethereum, the mining process gets going on the proof of stake method. In the proof-of-stake mechanism, an individual is capable of mining and validating the transaction based on the coins he possesses. The number of coins is directly proportional to the mining power.
There is no restriction on paying the transaction fees in Bitcoin. If you pay some extra money to the miner, he will return this favor by putting extra attention to the transaction. But if you do not pay the fee, the transaction will still proceed.
In Ethereum, you must have to pay some fee to be successful on this platform. Your transaction fee in the form of Ethers transforms into a Gas Unit, which ignites the computation process to attach your transaction to the blockchain.
Bitcoin takes 10 minutes to process a transaction. While an Ethereum transaction processes in only 12-15 seconds.
- Hashing Algorithms
Hashing Algorithms describe the way a cryptocurrency builds and maintains Privacy & security. Bitcoin applies SHA-256 as a Hashing Algorithm. Ethereum makes use of a Cryptographic Algorithm known as Ethash.
- By the Numbers
Bitcoin has almost a 100million fewer coins compared to Ethereum but still, the market capitalization of Ethereum is not even half of that of Bitcoin. The level of Bitcoin is way higher than that of Ether. Besides this, the numbers of transactions per day of Bitcoin are in thousands while Ether has it in millions. Ethereum adds many more blocks to the blockchain because of its excessive speed.
Bitcoin or Ethereum; Which one is better?
The decision of selecting Bitcoin or Ethereum as the best cryptocurrency is completely dependent on your requirements. Bitcoin operates well when the transactions are peer-to-peer, and Ether is beneficial for those who wish to establish Smart Contracts and develop distributed applications.
The winner of both the currencies is of your own choice because Bitcoin and Ethereum have deep roots and records. Although their roles are unique, analysts predict that they will lead currencies in the future. There is an enormous gap in the market value of Bitcoin and the rest of the currencies. Ethereum is hoping to cross Bitcoin one day!