What many people still don’t know is that despite being very famous crypto coins, these digital coins are quite different from each other. Learn more about the main differences between Bitcoin and Ethereum and the characteristics of each of these crypto coins below.
Bitcoin x Ethereum
Bitcoin was the first encrypted digital currency that achieved great success in the world. Soon after, however, a new virtual currency platform appeared on the market: Ethereum.
Ethereum is a technological platform founded on blockchain, a tamper-proof database that stores all records of transactions made. This system is powered by Ether cryptomeda, which in a short time became the second main cryptomeda in the world.
Although the Ethereum platform is somewhat similar to Bitcoin, cryptomoeda has an important difference in relation to its main competitor: the crazy growth in a short time.
The two currencies have been created from a complex program, which encrypts transaction data and protects the transactions and amounts invested from hacker attacks. Each currency, however, has its own purpose.
Regarding the differences between Bitcoin and Ethereum, the transaction time is highlighted: while a Bitcoin transaction takes about 10 minutes, transactions with Ethereum take only 20 seconds to be effective. Moreover, unlike Bitcoin, on Ethereum there is no limitation of virtual currencies to be generated and made available to users.
The user who purchases the digital currency Ethereum is also allowed to create his own cryptomime or token – which attracts a greater number of interested parties and results in a greater collection and appreciation of the currency.
The future of cryptomoks
The differences between Bitcoin and Ethereum platforms also appear when the subject is projections into the future. Mathematical calculations of the Bitcoin platform itself have defined that the circulation of cryptomeda may reach a maximum value of 21 million units.
For Ethereum, on the other hand, there is still no limit value of coins to be made available – which may represent a greater circulation of this cryptomoeda in the world market in the future and a strong advance in the quotation of this digital currency.
Despite having some disadvantages of cryptomains – such as the absence of ballast, the market seems to be willing to accept, more and more, digital coins in routine transactions. In addition to the recent entry of the Bitcoins in the US futures market, it is speculated that two large companies – one in the food sector and one in the consumer goods segment – will start accepting payment in Bitcoins later this year.
Added to the transactional costs of both currencies – increasingly lower due to the effort behind improvement projects and programmers, who make constant adjustments to the tools on a daily basis, the forecasts for 2018 and 2019 in relation to Bitcoin and Ethereum are for growth.
While specialists suggest a valuation of up to five digits for Bitcoin at the end of 2018, the expectation for the Ethereum digital currency is a tripling of its value over the year – mainly due to the continuous work of programmers focused on increasing the processing capacity of transactions with cryptomeda Ether. Ethereum can even stand out more in relation to its competitors in the coming years, due to its greater speed and lower costs for the user.
If you intend to invest in Bitcoin and Ethereum and bet on a growth of cryptomoedas for the next years, it is important to keep in mind that this is an unregulated and quite volatile market.
Therefore, it is worth to be cautious when buying a digital currency.
Try to keep track of the currency quotation and news from the cryptomime market before, during and after the purchase. Being always on alert can help you find possible purchase opportunities, but also avoid losing money in case of strong devaluations.