Simply put, Bitcoin is a Cryptocurrency which can also be called ‘digital dollars’ just with the exception of all the monetary bank protocols hence, this is what makes it considered as a disruptive concept however the system of its operation which makes it tamper-proof has it winning more and more users. So, while some people want to store their money somewhere other than in a bank other users are hoping to leave their money as Bitcoin long enough to increase the value as a form of investment.
Ethereum which is also a Cryptocurrency seems to be winning a large number of people as they can sense the potential of Ethereum overtaking Bitcoin as the dominant coin in the market. This Cryptocurrency coin value is referred to as “Ether” and just like it’s counterpart it can as well be bought and sold and also utilized by investors to buy into Initial Coin offering opportunities.
Both these Cryptocurrencies make use of blockchain technology which makes it a decentralized system. This means that there is no central authority such as a bank or government that controls theses currency. Instead, the technology it utilizes is one which grows with the increase in users in a particular system which makes it better because it is not controlled by human and subjected to error rather, they operate on high-performance computers called miners that aid smooth transactions among peers. It should be noted that Bitcoin and Ethereum are powered respectively by their native coin BTC and ETH which both coins can be bought and sold outside of their own ecosystem as a value for exchange.
DIFFERENCES BETWEEN BITCOIN AND ETHEREUM
While these two Cryptocurrency Giants have a couple of similarities, they are quite different from each other in certain aspects. For starters, it should be known that Bitcoin was introduced by a programmer Satoshi Nakamoto in 2008 while Ethereum was introduced by Vitalik Buterin in 2013. Below are few notable differences when you stage Bitcoin versus Ethereum;
- Since the inception of Bitcoin, its purpose has always been wanting to be a worldwide decentralized financial system as it gives people the power to possess full control over their finances while for Ethereum, it’s purpose has always been to be more than just a payment service provider as it intends for developers to be able to create real-world application through it.
- Transactions fees according to stats, shows that Bitcoin has significantly more fees attached on transactions than Ethereum.
- Bitcoin uses a fee for transactions while Ethereum uses a gas system for the transaction.
Above are some of the differences between the two Cryptocurrencies, Bitcoin and Ethereum. It should also be noted that at some point Bitcoin had a split in to the normal Bitcoin which kept its block size at 1 MB as it activated SegWit and Bitcoin Cash that increased its block size to 8 MB and did not activate the SegWit. For Ethereum that uses the gas system, has a limit of 6.7 million gas units as a one on one transaction that takes up to 21,000 units.