The cryptocurrency market is one that rewards knowledge. The more you explore, the more you know and your knowledge could translate into better earnings in the short and long run. However, one thing you are likely to find confusing is the competition between Bitcoin and Ethereum. Let’s resolve the confusion once and for all so that you can decide which is best for you between the two.
The best way to resolve the confusion is to first outline the similarities and differences between the two and then to advice on which is superior between the two. To start with, both coins are decentralized. In terms of total coins in existence (market capitalization) Bitcoin’s is the gold standard as their coins are valued at $147.3b while Ethereum coin clocks in at a respectable $84.2b. Although both coins are cryptos, they both operate with different goals. The goal of the Bitcoin is mainly to operate as a digital currency whereas the goal of the Ethereum is to function as “smart contracts.” This implies that they can never go offline or be edited by third parties.
While it is true that both are a medium of monetary exchange, upon closer introspection, Ethereum goes the extra length of functioning as a building platform for dApps/smart contracts, which is why it can be used to send tokens that represent values. This perhaps explains why Bitcoin’s transactions are manual in nature whereas Ethereum’s transactions are automatic or programmable.
In terms of speed of transaction, Ethereum is the Usain Bolt of cryptocurrencies as its transactions can be completed in seconds compared to Bitcoin’s which can last minutes. Bitcoin is renowned for its healthy store of value. This is because they are limited to 21,000,000 coins and this helps to induce a healthy demand and supply ratio. The production of Ethereum unlike the Bitcoin is not limited as it is continuous and this is why its storage value is not exactly promising.
In conclusion, as enumerated earlier, both coins operates with different goals. Bitcoin’s goal is to operate as a peer to peer digital currency useful for financial transactions whereas Ethereum is more focused on running a decentralized smart-contract applications that cannot be altered on a blockchain technology. In deciding which is better, consider that Bitcoin has a lower coin supply which means it is more liquid but Ethereum runs on superior technology. Obviously in terms of technology and potential, Ethereum is your best bet. Their coins are unlimited and are capable of a broader use than banking and payment functions to which Bitcoin is mainly deployed currently. The good news is that both currencies are not necessary alternatives and you can go with both of them at the same time.