Ether or Eth token, the crypto coin of the Ethereum network is the second most famous cryptocurrency after Bitcoin. As per the market capitalization value, it’s possible to compare between Ether and Bitcoin.
Bitcoin and Ether are much similar in many ways. Each of them is a great digital currency that can be traded via online exchanges. Additionally, they can also be stored in different types of crypto wallets. Both of these crypto tokens are decentralized. This means that no bank or Government in the world can regulate these currencies. Both of these coins are dependent on larger and more advanced technology known as the blockchain.
However, there are some impressive distinctions between Bitcoin and Ethereum. In this article, we will discuss the differences and similarities between Bitcoin and Ethereum.
The Basics of Bitcoin
Bitcoin was first introduced in January 2009. Even though it’s claimed that Satoshi Nakamoto is the one who invented Bitcoin, but that’s just a made-up name. People still cannot identify the original inventor of Bitcoin. Unlike Government-issued currencies, Bitcoin is one of the most famous virtual currencies that are safe and secure without any type of central authority. There is no existence of physical Bitcoin as the balance is associated with cryptography.
Even though Bitcoin is not the first-ever cryptocurrency introduced in the market, it is undoubtedly the most successful and stable one. After the development and growing popularity of Bitcoin, people started creating other types of cryptocurrencies.
Over the past couple of years, the concept of virtual currency has gained acceptance among various Governments. Even though cryptocurrency isn’t any recognized or authorized format of online payment, the coin managed to climb the top of the ladder with the financial system while being debated and scrutinized.
The Basics of Ethereum
The advanced technology of blockchain is capable of developing applications that can do much more than just enable virtual currency. Introduced in late 2015, Ethereum is one of the most well-established, largest, and open-ended decentralization platforms available in the market.
As per ambcrypto espanol, Ethereum is the first-ever crypto coin that enabled the dApps and smart contracts. The programming language of Ethereum is completely dependent on the blockchain. This helps developers to create and run distributed applications.
The multiple applications of Ethereum are powered by the token known as ETH or Ether. In 2014, the inventors of the Ether launched a presale for Ether that gained an extraordinary response from the investors.
There are two main purposes of Ethereum. They can be used to purchase or trade other types of cryptocurrencies, or they can be used in the networking scale of Ethereum to run various applications.
Why Bitcoin is Called Digital Cold and Ethereum is Called Digital Silver?
Bitcoin is also considered as digital gold as it was the first crypto coin in the market and holds the biggest market capitalization value of more than $1 trillion. This is why the limited supply of Bitcoin ensures that it retains its original value. As per Investopedia, Bitcoin is a rare resource.
On the other hand, Ethereum is known as digital silver as it’s the 2nd biggest cryptocurrency in the market. Not to mention, it has various applications.
Now that you know the differences between Bitcoin and Ethereum, it’s time to make the perfect investment. While investing in cryptocurrency, make sure you know the best time to purchase, hold, or sell the coin.