Bitcoin and Ethereum are two names that every crypto investor is thinking about. They are two of the top digital currencies in the market. Everyone is confused that which is one is a better investment as there is a huge price difference between them. If you are interested in bitcoin trading, you must read bitcoin myths book. So, before you make your decision and choose one among bitcoin and Ethereum, there are some important things that you need to know about.
Bitcoin
First and foremost, if we talk about bitcoin, it is the largest and most expensive digital currency in the world. If we talk about the top market capital of bitcoin, it is around $625 billion. It is a perfect investment in modern times if you want to make some easy and quick profits. Before you make a choice between Ethereum and bitcoin and make an investment, there are some important aspects about bitcoin that you need to know about.
Limited supply
Bitcoin is a digital currency which not issued by any government authority or institution. New bitcoins are issued in the market through a process known as bitcoin mining. Bitcoin mining involved solving complex mathematical problems and adding new blocks to the blockchain. There are only 21 million bitcoins that can ever be mined, and most of them have already been mined. So, it makes it evident that the supply of bitcoin is limited. So, as time will pass, the number of bitcoins available will decrease, which will shoot up the price of bitcoin. So, you must keep that in mind before choosing between Ethereum and Bitcoin to make an investment.
Highly volatile
One of the most prominent features of bitcoin is its high price volatility. It is a highly volatile cryptocurrency which means its price keeps on fluctuating. It is almost impossible to predict the price of bitcoin as it never stays stable. It is the main reason that bitcoin is considered to be a risky investment. It is one of the most important things that you need to be aware of before investing in bitcoins. You must check the volatility before choosing between Ethereum and bitcoin.
Widely accepted
One of the top reasons that make bitcoin different from Ethereum is its global acceptance. Bitcoin is the most popular cryptocurrency, and investors and institutions all over the world have shown their interest in adopting bitcoin. It has gained the attention of global investors, which has opened up several growth opportunities for bitcoin in the future.
Ethereum
Varying purpose
It is irrefutable the bitcoin and Ethereum are top of the top cryptocurrencies, but the goal and purpose of them are different. Ethereum is a decentralised platform that allows users to build the application and facilitates different types of exchange. It can also be used for issuing tokens for numerous cryptocurrencies. If we think wisely, bitcoin and Ethereum cannot be compared as the purpose and aim of using both of them are different. Ethereum is an excellent platform that can be used for changing the future of technology and finance. The smart contracts enabled by Ethereum offers a wide range of benefits.
Different block creation
In bitcoin, new blocks are created and added to the blockchain through a process known as bitcoin mining. But Ethereum is different as it works on the basis of proof of stake. The users with the largest proof of stakes will have the maximum power to create new tokens. Ethereum platform uses a currency to facilitate transactions, and it is known as Ether. So, the users with a higher Ether stake will have a higher value as the number of Ethereum in the market is decreasing.
Which one should you buy?
Now comes the most important question, which cryptocurrency should you buy? Bitcoin or Ethereum? Both the currencies have performed quite well in the past few years. Bitcoin is considered to be the kind of crypto world, but Ethereum is also not too behind as it is giving a tough competition to bitcoin. There are risks involved in both of them, and the higher risk you will take, the higher rewards you will be able to earn. Bitcoin is widely accepted and is more popular as a payment method. On the other hand, Ethereum is more popular as a decentralised platform for app development.
