Bitcoin vs Ethereum

It is a decentralized digital currency. In other words – a virtual asset for making online payments, investments, or even storing savings. Bitcoin is transparent, and its issuance is limited to 21 million coins, meaning its value will constantly rise.

What is Ethereum?

Ethereum is a blockchain platform for decentralized applications, and ETH is the second most capitalized native cryptocurrency, with most popular DeFi and NFT projects running on its network.

Next up is Bitcoin vs. Ethereum.

The main difference between Bitcoin and Ethereum

The main difference is that Ethereum is a standalone platform that supports a number of useful features. For example, there are things called “smart contracts” that allow automated and secure transactions without human errors.

What are the similarities between Ethereum and Bitcoin?

Like Bitcoin, Ethereum is based on a decentralized payment network. It allows for anonymous online payments without the need for a bank or third party.

Compare Bitcoin (BTC) and Ethereum (ETH) in terms of differences, investment, and purchasing power

However, BTC and ETH are still pretty different. Consider blockchain technology, for example. Compared to bitcoin, Ethereum allows for much faster block creation, which means faster transaction processing.

And yes, transaction processing is indeed much faster here. Just many times faster – payments in Ethereum are confirmed in seconds, not minutes as in BTC.

And there’s more. These cryptocurrencies also differ in the technologies that underpin them. With ETH, for example, you can not only make transactions, but also create smart contracts. A smart contract is an alternative to legal contracts. In legal contracts, the third party is the system of the country where the contract is made. It is responsible for enforcing it.

Smart contracts are exactly the same contract, yet only digital. They exist within the Ethereum system and their execution is guaranteed by a program based on a strict mathematical system.

If we look at these two cryptocurrencies in terms of investment tools, they are both good. Bitcoin is at about the same level in regards to liquidity, although it is still much more risky and volatile.

What can be purchased with each cryptocurrency: BTC vs ETH

Bitcoins can be used to buy rare antiques, apartments, cars, and gold. You can spend BTCs to pay for hotels, casinos, or train tickets. In general, a wide variety of goods and services.

Today’s cost of Ethereum and Bitcoin

At the time of writing (mid-April 2024), ETH is trading at an average of $3,100 and BTC at $64,000.

Which is a better investment in 2024: Bitcoin vs Ethereum

This is an interesting question. As we’ve already found out, these two cryptocurrencies are designed for completely different tasks, but both are still good. So which one is better to invest in?

You might think that the answer is obvious, and that it’s BTC. Especially considering its recent huge growth, when it broke through the $70,000 mark, and the fact that it’s about to be halved, which will probably send its price straight into space.

Such predictions are not based on nothing. They are justified by EIP-4844 – the planned update of the Ethereum protocol. It will integrate a new type of transactions with the addition of information in the form of blob-objects. They are cooler than permanent blocks in that their presence can increase the amount of information that is transmitted without sacrificing the speed of transmission.

And this thing should give ETH a serious boost.

Below is a chart of the price of Ethreum from 2021 to 2024:

And here’s a chart of BTC price changes over the same period:

So both of this cryptocurrencies are worth investing in 2024.