Bitcoin comes first in the cryptocurrency space, and Ethereum follows closely at position two. However, are there any differences between the Bitcoin Blockchain and Ethereum Blockchain.
The Similarities
Many people consider Bitcoin and Ethereum simply as cryptocurrencies without paying keen attention to the details, where the differences and similarities lie. Understanding these can help you with your investment decision.
The similarity between the two digital money transfer systems is that they both use blockchain technology. The blockchains are public distributed ledgers useful in recording all the transactions. Additionally, the two are decentralized cryptocurrencies. This means that they are not under the control of any central bank or financial institution.
The Differences
The Bitcoin currency was the first to go into circulation, that is, in 2009, making it the first cryptocurrency. On the other hand, Ethereum is a recent development that went live in 2015. You can view it as the world’s decentralized computer.
Furthermore, the transactions in Ethereum blockchain are far much faster than in the Bitcoin blockchain. The transaction speed was a factor from the beginning and Ethereum works on this, with transactions taking seconds instead of minutes.
Nonetheless, both blockchains record transactions. However, the Bitcoin blockchain is a database of wallets (accounts) that store amounts; the Ethereum blockchain has sophistication in its construction. It can store computer code applications. The idea behind these useful applications is that businesses, individuals, and governments can buy and sell Ether as they tap into the resources of the Ethereum network in running their apps.
Bitcoin or Ethereum: Which One Should You Invest In?
With these two ranking high in the crypto industry, you might wonder which one to invest in. Well, remember that giving ultimate advice on where you should put your money isn’t easy. However, you can keep a few things in mind, and with the right information and knowledge, you can make a good investment decision.
Therefore, you can look at the useful applications for assets of both Ethereum and Bitcoin Blockchain. These are some of the long-term growth determinants you can watch out for. Moreover, look at the growth in their value. Will Bitcoin stay a widely accepted form of currency, or will the Ethereum network become the standard for distributed computing? If so, then both of the assets have high chances of growing.
Importantly, the world is technologically advancing. Suppose a newer and more efficient algorithm is introduced. Will you still use Bitcoin or Ethereum? Besides, you should be aware that both of them face threats such as government regulation.
Which Has More Potential: Bitcoin or Ethereum Blockchain?
Chances are, you would want to invest in a cryptocurrency with greater potential growth. Remember, it is evident that many individuals and businesses are continually embracing Bitcoin as their payment method.
On the other hand, the Ethereum network supports many applications. Therefore, before deciding on the cryptocurrency to go for, ensure you know the differences between the blockchains and how they work.