As of 2023, there are 420 million global cryptocurrency users. Just a decade ago, no one really knew what cryptos were, but since the early 2010s, this type of currency has exploded in popularity, thanks to Bitcoin.
After Bitcoin took the world by storm, numerous other cryptos came to life. While many compete to make it to the top, there’s no doubt that Ethereum firmly takes second place after Bitcoin.
So what’s the difference between the two? Read on to find out more about Bitcoin vs Ethereum.
About Bitcoin
In 2009, Satoshi Nakamoto founded Bitcoin; people believe this to be the pseudonym of either one person or a group of people who developed this cryptocurrency. What’s so incredible about Bitcoin’s creation is that the first blockchain database came along with it.
People mine Bitcoins every day, but there’s only a finite amount of it. There are only 21 million coins, and as of early 2023, 19.3 million (or 92%) of them have already been mined.
Because it’s the first cryptocurrency, it has the largest market dominance. Generally speaking, other cryptos’ values are tied to Bitcoin’s.
About Ethereum
Ethereum came a bit later than Bitcoin; Vitaly Dmitrievich Buterin founded it in 2015. Its main purpose is to be a decentralized computing network.
Unlike Bitcoin, there’s an unlimited supply of Ether, so you won’t have to worry about it running out.
Bitcoin vs Ethereum: Similarities
Both are decentralized and have periods where halving occurs. This is where the rewards for mining are halved, making it less lucrative to do.
You can store both cryptos in digital wallets, which makes your investment secure. In addition, you can buy and sell these cryptos at machines located at various retailers. You can easily find BTC ATMs nearby to either get rid of your cash or get some fast.
Bitcoin vs Ethereum: Differences
While both cryptos are decentralized, there’s a major difference: Bitcoin is for payments, while Ethereum is for software.
Also, since Ethereum came after Bitcoin, its block time is much quicker. Bitcoin has a block time of 10 minutes, whereas Ethereum’s is 12 to 14 seconds. However, the drawback is that Ethereum’s transaction fees are much higher.
As we’ve mentioned before, there’s a finite amount of Bitcoin, but an unlimited amount of Ether. However, Ethereum had a merge in late 2022, which moved it from the proof-of-work (PoW) mechanism (which Bitcoin uses) to proof-of-stake (PoS). Experts expect this to significantly impact the amount of Ether produced yearly.
Make Wise Investments
For the Bitcoin vs Ethereum debate, both are good investments for your portfolio.
Bitcoin was the catalyst for other cryptos, and Ethereum is currently second after it. So by putting your money into either or both, you’ll see a handsome return in the future. Just make sure you keep your ear to the ground and sell at the right time!
Are you interested in other crypto types? Then keep browsing our blog page!
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