Ethereum vs Bitcoin: What is the difference between both? Is Ethereum a better investment than Bitcoin? Find it out in our detailed guide.
All of those who want to invest in cryptocurrency ask, should I buy bitcoin or ethereum. It’s a rather complicated question, an answer to which lays in understanding the basic features of every currency.
Bitcoin and Ethereum are by far the most advanced and demanded cryptocurrencies. They are of interest to financiers, business people, and ordinary citizens who argue about which coin is cooler.
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Before making a decision, should I buy bitcoin or not, the user should get the details.
BTC, released in 2009, became the real highlight of the year. The creation of a cryptocurrency was discussed before, but only this year Satoshi Nakamoto managed to implement the idea.
Bitcoin is a blockchain-based network. Among the main features of BTC are:
- Decentralization. The state does not regulate the issue of bitcoins. Consequently, the government cannot control the use of the currency and dictate the conditions to the BTC holders. Also, all participants are equal to each other. There is no division into categories, as, for example, among users of Visa or MasterCard cards (systems issue different cards – gold, platinum, VIP);
- Anonymity. Using bitcoins for payment, you do not have to enter your personal information. Only one thing is needed from you: the number of your bitcoin wallet, which consists of letters and numbers;
- Fast transfers of money to any place.
Here the talk is not only about money. An answer to the question, should I buy ethereum or not is rather positive. The main feature of this currency is that it is a multifunctional platform based on blockchain technology. And her primary task was to ensure the smooth operation of smart contract technology. And only then ETH coins gained popularity and began to be actively used to pay for goods and services, as well as cryptocurrency investments.
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The Ethereum was presented by its founders Vitaliev Buterin and Gavin Wood at a specialized conference in Miami. Experts, unlike ordinary users, immediately realized that Ether is not a clone of the popular bitcoin at all. This is a fundamentally new platform for creating decentralized projects. Assessing the prospects of the technology, investors immediately offered their financial assistance.
Ethereum vs Bitcoin difference
Let’s start with Bitcoins. The digital currency Bitcoin was introduced to the general public back in 2009. Bitcoin was the same money, only existing exclusively in electronic form, not subject to government influence and maintaining the anonymity of its owner. Such a cryptocurrency is needed by any individual or legal entity who wants to buy or sell any services or goods using it. At the same time, no one will be able to block his account, trace the origin of money and transactions with them. Also, coins are stored in unique electronic wallets and do not interact with the banking system.
If we consider what Ether is, then here we will see a completely different picture. This platform was launched in 2014. Its primary purpose, unlike Bitcoin, was not just to provide another means of payment, but to give users a new unique offer. This proposal has become a multifunctional blockchain-based platform, which includes the ability to conclude SMART contracts between parties. Thanks to these applications, the blockchain can automatically check the fulfillment of the terms of transactions by the parties and make them, excluding the human factor. To conclude smart contracts, the user can use the internal currency Ether or create their token using open source.
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It must be said that it is also possible to create a SMART contract on the Bitcoin network, but this is much more difficult due to the difficult programming language and offered tools. The Ethereum network runs an EVM – a virtual machine that, given sufficient time and memory, can run an application created using any existing programming language. Thanks to EVM, there is no need for each application to create its blockchain since thousands of them can work simultaneously on one platform.
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