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The recent rise in the value of virtual currencies has seen them gain widespread attention, with two of the biggest, Bitcoin and Ethereum, becoming household names. But what is the difference between Bitcoin and Ethereum?
The unveiling of cryptocurrencies has seen them gain widespread popularity over the last decade, with Bitcoin being the first of its kind. Since then, Ethereum has become a revolutionary new option that is worth considering.
To help you decide, we have put together our comparison between Bitcoin and Ethereum in this guide. Read along to learn more!
Function
Bitcoin is the first type of cryptocurrency, and it is off on the traditional banking system. Ethereum is a platform that was to help the use of smart contracts.
As a decentralized network, it allows people to make agreements on the blockchain without third-party interference. The function between the two is the exchange of digital assets.
Bitcoin is to buy Ethereum, and Ethereum is to buy Bitcoin. Both of these digital assets have the potential to be very lucrative crypto investments.
Popularity
Bitcoin was the first-ever cryptocurrency and still holds the largest market share. Ethereum is a somewhat younger cryptocurrency and has been gaining popularity more quickly. Both are blockchain technology; meaning transactions are secure, fast, and decentralized.
Investing in Bitcoin is more popular as a store of value for trading, whereas Ethereum is more famous for its ability to fuel applications, DApps, and smart contracts. The popularity of the two will continue to rise as more people become aware of their potential.
Value and Cost
These currencies have their value and cost that you must consider. Bitcoin is the most established and used currency, with a market capitalization of about $170 billion as of May 2020. Ethereum is the newest primary, with a capitalization of about $30 billion simultaneously.
In general, Bitcoin is seen as the more established of the two, but there are many scenarios in which Ethereum can offer a better value and cost. For example, Ethereum focuses on smart contracts and decentralized apps, which gives developers more flexibility and security. Ethereum is also more convenient than Bitcoin because of its higher transaction speeds.
Ethereum offers a lower total cost of ownership, which could be more attractive to confident investors. It is up to each individual to find the right cryptocurrency that best suits their needs. If You’re considering investing in Bitcoin to get a quote, click here to have one.
Know the Difference Between Bitcoin and Ethereum Today
Both are two of the most used cryptocurrencies. And while they share some similarities, they have very different applications.
Bitcoin is limited to payments. While Ethereum is much broader and used for building decentralized applications.
If you’re looking to get into cryptocurrency, take the time to research the difference between Bitcoin and Ethereum. Then, decide which one is right for you!
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