As soon as you start to learn more about the world of crypto, you will have a question, what is more profitable to buy Bitcoin or Ethereum. You can compare these two digital coins with Apple and Microsoft. They are also completely different from each other and have very different goals.
The goal of Ethereum is to launch decentralized applications with smart contracts based on blockchain technology, which are not disconnected and cannot be changed. It provides traders with a programming language for creating applications and a convenient platform.
In this case, the goal of Bitcoin is different. It is a decentralized repository of value, which is used for various financial transactions and, due to the latest gatherings in the cryptocurrency market, is even more popular as a safe haven asset. BTC eliminates the need for third parties in payment technologies.
The main differences between Bitcoin and Ethereum are their concepts and goals. In addition, the Bitcoin blockchain doesn’t execute smart contracts and pays great attention to payment technology.
Smart contracts is a decentralized tool that was created on the Ethereum platform. With their help, you can set the conditions that initiate a transaction when they occur. Developers can create applications that are never disconnected and won’t be edited by third parties.
Yes, Bitcoin is more liquid and has a smaller supply of crypto coins than ETH. However, the second cryptocurrency has better technology and provides more applications than BTC.
Since Blockchain is still evolving, Bitcoin and Ethereum are also constantly updated. One of these updates is Ethereum 2.0. With it the coin will switch to the Proof-of-Stake algorithm, increase the speed of transfers and reduce power consumption. This is a big plus for owners of mining farms, because mining will be cheaper. Based on the words of analysts, ETH will even be able to reach the mark of $300 this year.
Also, an important event for traders soon will be Bitcoin Halving. This is the process when miners verify transactions in the network of the first digital coin and receive a reward for each block of checks. During halving, the reward for introducing new bitcoins into the system will be divided in half for every 210,000 transactions. The previous halvings led to significant price movements in the market. It helps curb inflation and control bitcoin emissions.
Bitcoin is currently the most popular digital currency. There are many companies and retailers willing to accept it as a form of payment for the goods and services provided. This gives BTC more weight and increases the level of trust in it.
In the battle of Ethereum against Bitcoin, each of the coins has its own advantages. However, you should also pay attention to ETH because it has an unlimited number of use cases, while the first cryptocurrency deals only with payment and banking transactions. Bitcoin may have a better market position, but Ethereum has the best technology and great potential.