Cryptocurrency also called Digital money or digital currency has been all the rage over the past few years. Coins namely bitcoin have gained lots of popularity across the world in recent times and financial institutions are starting to get on board. The two of the biggest and most popular coins are BTC which is Bitcoin and ETH which is Ethereum. This post explores more about both of these cryptos and compares both of them and will help you understand the pros and cons for these so you determine which cryptocurrency is right for you to choose from.
About cryptocurrency
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A cryptocurrency is a virtual money that is safe and nearly impossible to fake. These virtual coins are the assets existing on the distributed networks. The decentralized networks of these mean that governments and all other central authorities will not have any power over them. Blockchain technology is a technology that is based on the distributed ledger database that underpins cryptocurrencies. Cryptography and encryption methods secure the network and save tempering. All transactions are stored as a separate blockchain and those records are 100% assured to be safe, unchallengeable, and precise.
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BTC versus ETH
BTC and ETH arguably are the most popular cryptos available in the market at present. They are the biggest by market cap. The market cap of BTC is more than $363 billion and the market cap of ETH is nearly $161 billion.
BTC- Bitcoin
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BTC was the first crypto that was launched in the year 2009 by a crypto architect known as Satoshi Nakamoto. The idea for virtual money was simple and radical. It is assumed to be the best substitute for conventional money named fiat currency, through a decentralized and crystal-clear financial system available to all.
BTC functions on the blockchain network. The transaction takes place between BTC wallets through private keys that provide mathematical proof of genuineness. Cryptography makes sure of integrity as well as the chronological order of the transactions and they are distributed consensus system permits pending transactions.
BTC has capped many coins at 21 million that can be minted. Once that figure is reached, the coins can be traded but no more can be presented.
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ETH- Ethereum
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ETH’s whitepaper was released in the year 2013 and the official project was launched in the year 2015. ETH or Ethereum is an open-source and community-driven project that has seen more evolution since its introduction. Similar to Bitcoin, this cryptocurrency is a decentralized one that snubs censorship and surveillance. The focus of it is to enable access to financial services and commerce for all. It doesn’t allow the development of other cryptos and the execution of smart contracts.
Bitcoin and Ethereum- Pros and Cons
Both of these are blockchains but they have different purposes and each one has its pros and cons.
Bitcoin
Pros
- It was the first crypto in the market.
- It has gained good recognition and was made a globally accepted crypto.
- Still, there is a big growth for it.
- It uses technology that protects against fraud.
- It has quick transaction speed.
Cons
- Its price is greatly volatile.
- It has limited functionality.
Ethereum
Pros
- It leverages blockchain technology for transparent and decentralized systems.
- The technology allows functionality beyond virtual money like smart contracts and decentralized apps.
- It processes transactions fairly faster than BTC.
- The community of developers is the biggest one.
Cons
- The coin isn’t BTC which is the popular crypto across the world.
- The fee for the transaction is higher than BTC.
Summing up-
Both of these have increased value. If you choose to invest in blockchain, it makes sense to consider these two. Choosing anyone of these depends on your goals and needs.
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