The War of Cryptocurrencies Begins. Only One Can Win, So Bitcoin or Ethereum?
What is the difference between the two most used cryptocurrencies? Which of these is more perspective, Bitcoin or Ethereum? We will try to answer these questions and predict what time has in store for both cryptocurrencies. And the reason why Ethereum is most likely to win. Today, we are going to give some insight about them. Let’s begin with the currency that started all of this:
Bitcoin – The currency that started everything
Bitcoin is an independent digital payment system and cryptocurrency since its beginning in 2009. Although its creator is not known to this day, the cryptocurrency has been functioning as decentralized and unaffectable. The infrastructure of the whole system is taken care of by Bitcoin Foundation, yet all the decisions are decided democratically.
However, there is a strict amount of Bitcoins. All 21 000 000 bitcoins will have been depleted by the year 2140. Yet, the speed of the mining process of bitcoins has been continuously decreasing over time.
Bitcoin Mining
It roughly takes 70 bitcoins to be mined per hour. This “mining” is a record-keeping service done through the use of the processing power of special computers. These computers carry out transaction confirmations.
Currently, the majority of all miners comes mainly from Asia due to low electricity costs. The whole matter of the transaction confirmations is rather complex and not important for our needs.
On 1st. August, a small part of miners split from the others. Declaring their disagreement with the coming update of Bitcoin protocol, they established a new currency – Bitcoin Cash.
Each holder of Bitcoin Cash received the same amount of the newfound currency. However, various scenarios predict its inevitable downfall, although its current rate is around 500 $.
Bitcoins which have been mined or bought are stored in so-called „wallets“. These are files either saved on a computer or run by a third-party service, where the files are secured by a private key.
Yet, the price of Bitcoin has broken all records this year. In March, a single Bitcoin was worth 1000 $ and the growth has not stopped since then. That also one of the main reasons why cryptocurrency beginners trade Bitcoin.
Currently, a single Bitcoin is worth approximately 9,950 $. According to financial experts, the Bitcoin’s growth is maintained by two factors. The first of them being the interest of various investors (mainly from Japan), the other being the progressive interest in Bitcoin amongst the public.
Only the future will show, whether these factors will take their toll or not. Regardless, the Bitcoin has become a gold mine for the investors throughout this year. Still, its growth is less likely to slow down or to stop.
The second most known cryptocurrency is Ethereum. The fact that differentiates these two lies in the potential of Ethereum, as it tries to become more than “usual” cryptocurrency. We must admit that our front-runner is Ethereum whose potential is stronger than the one of Bitcoin. Why? Simply, because of these facts:
Ethereum – Bitcoin’s Biggest Rival
Contrary to the Bitcoin’s case, the author of Ethereum is known. Vitalik Buterin, a Russian young man that launched Ethereum’s network in 2015. The cryptocurrency’s development is, therefore, centralized with a given plan.
In our opinion, we consider this an advantage compared to Bitcoin. Ethereum is blockchain-based, which means the records are stored in a decentralized database protected against unauthorized interventions.
At the same time, Ethereum is decentralized computing platform featuring so-called „smart contract“ functionality.
Actually, the blockchain technology in the Ethereum network forms a gigantic worldwide supercomputer. Moreover, such a supercomputer is formed by high-performance computers called Rigs.
The good thing is that anyone could be an owner of a Rig and become a miner. The process of Ethereum mining and how to assemble a Rig will be dealt with in other articles.
Creating Your Own Cryptocurrency
The supercomputer holds a great promise. Imagine the option of creating your own cryptocurrency using the Ethereum blockchain technology. The blockchain could be used by insurance companies, internet banking in the future.
Additionally, it could include the record-keeping unfalsified transactions or the record-keeping of state business activities. Dubai is the example of the latest and wants to accomplish this vision by the year 2020. This is one of the reasons we believe Ethereum is more likely to become an internet phenomenon.
As Bitcoin has its derivated currency in the form of Bitcoin Cash, so does Ethereum in the form of Ethereum Classic. This was the outcome of events concerning the theft of Ethereum coins in 2016.
One of the Ethereum’s greatest advantages is Ethereum Foundation. Why? Google, Microsoft, Twitter, LinkedIn and similar IT corporations are its members. This could be classified as a research support and development of the Ethereum platform which provides the world with decentralized protocols and tools.
These enable the developers to create new decentralized applications (dapps) and jointly establish more trustworthy, charge-free internet in terms of global access.
The price of Ethereum has been growing stronger this year, thanks to Ethereum Foundation and the investment of regular miners. This is another reason we find this cryptocurrency more appealing.
Something tremendous can arise from small efforts. Will you lend your strength? Currently, the rate is around 470 $ and has increased by more than 4 000% since January of this year. The investment comes mainly from China, yet gradually spreads across the world.
We believe Ethereum will meet a great success in the years to come, as it is not a usual cryptocurrency and its potential grows with passing each day.
Category: Bitcoin
