The digital market offers more than a thousand different cryptocurrencies. But only there are only two that fight for the silver and gold medals – Ethereum and Bitcoin. If you know how cryptocurrency works, you are aware of the fact that they are as much different as they are similar. While one was the pioneering product, the other is often viewed as the better or more innovative one. Users have engaged in lots of heated disputes as to which one is the best. The answer is still uncertain and only time will show. Let’s examine the two biggest cryptocurrency exchanges’ crossing and breaking points.
The Genesis of Cryptocurrency
In 2009, someone under the nickname Satoshi Nakamoto changed forever the digital and financial spheres. All because of the new and incredibly innovative asset Bitcoin and its technology. An entirely new good was introduced – cryptocurrency. Conceived as an electronic payment system that eliminates the need for a middleman like a bank, the cryptocurrency quickly became an asset. Because people saw its potential not just in terms of the blockchain. In 2017 it spiked in value and by the end of the year almost broke the $20,000 price per unit psychological barrier.
In 2013, four years after the release of Bitcoin, the Russian programmer and cryptocurrency researcher Vitalik Buterin came forward with his proposal for the Ethereum cryptocurrency. It is one of the successful crowd-funding initiatives in this industry and thanks to the swift manner in which it was funded, the asset and its network were released in 2014.
Did You Know?
Crowdfunding initiatives are very popular nowadays but they are used mainly to fund the creation of a tangible good. In return, backers receive the product itself once it’s ready. The procedure with cryptocurrencies is quite similar. The main difference is that early backers of new crypto assets receive as reward tokens or units of the new cyber-currency. What is specific about these types of crowdfunding initiatives is that they are often held in Bitcoin. This makes evident the fact that the most desired and reliable cryptocurrency today is still Satoshi Nakamoto’s creation.
Ever since then, even though the Bitcoin has kept its leadership positions on every cryptocurrency list, Ethereum has been its main competitor. Of course, nowadays all cryptocurrencies are dependent on each other. Fluctuations in the price of the Bitcoin reflect on the values of the Altcoins that exist in its shadow. But the matter of fact is that it’s not just Ethereum that is breathing down the neck of the pioneer. More will follow. But for now, the main competition is between these two.
Bitcoin is the Foundation of Ethereum
Economist Milton Friedman managed to predict the launch of a digital currency back in the late 1990’s – almost a decade before the actual creation of Bitcoin by Satoshi Nakamoto. He stated that the world’s governments had imposed ‘collectivism’ on society, their far-reaching hand making them the sole authorities that have power and control over one’s life.
It was not long after that that Satoshi Nakamoto published a paper, dubbed ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, on a digital cryptographic network and nothing was ever the same again. The first Altcoin managed to not only provide users with an innovative way in which to carry out transactions in between one another but also to act independently and anonymously.
Good to Know:
It also gave them a sense of independence. Humanity lives in the era of social media, where a celebrity selfie in front of the bathroom mirror catches more attention from the public than a natural disaster. People are hungry for some kind of anonymity and this is what all the different cryptocurrencies, scrypt mining, crypto trading, and crypto mining solutions manage to provide.
There is a very good reason why the average Bitcoin value is prone to such dramatic fluctuations in the last year – its blockchain technology and its respective applications have been further developed and enhanced by newly-arisen digital currencies. Still, it has successfully managed to keep its leadership position on the market.
Bitcoin Vs Ethereum Investment – Which is the Most Productive?
Both the Ethereum and Bitcoin values have to swing between unseen highs and lows in the past year. Ethers do have a little advantage when it comes to future price predictions. Since Vitalik Buterin’s Altcoin exchange offers smart contracts, a transaction approval time of only 12 seconds, and an enhanced version of the blockchain network, Ethereum will most likely do better in the long run.
There are some speculations that the fact that Bitcoins have a limited number and are almost exhausted and mined for will keep the rise in its price stable and ensured. Just like that of a rare piece of art, oil or a precious metal. But more concrete facts need to come out in order to prove this.
Both cryptocurrencies are here to stay but only time will tell which one will be more easily applicable for currency trading. Interest in them has only been increasing. Another possible scenario is that one of the lesser-known digital exchanges will surprisingly introduce a new blockchain, public or private ledger innovation and take the pie right from under their noses.
Application of the Cryptocurrency Exchanges
While Bitcoin may have been the first to make the public familiar with the blockchain network and its adjoining virtual apps, it has received heavy criticism in the last couple of months that its transaction information is way more transparent than is good for the end user. Private information about the sending and receiving of monetary sums and data can literally be seen by anyone. Especially, by the interested representatives of official authorities.
The approval of a given transaction also takes up more than 10 minutes. Ethereum, on the other hand, can confirm them in under 12 seconds and has implemented enhanced SSL protocols. Payment and clearing periods are also very short. One of its most revolutionary inventions were the smart contracts.
The cryptocurrency trading public seems to be particularly fond of them. Smart contracts grand users greater freedom, anonymity, and flexibility. There is also no limitation or auto-restriction imposed on the supply growth.
Ethereum’s crypto mining and currency mining operations are also more decentralized. Any user that has a proper GPU can engage in them. Bitcoin does not generally approve of the common implementation of specific singular circuits.
Did You Know?
Bitcoin is a private project. Ethereum was started as a side project which sought to point out improvements which could be made to the first cryptocurrency’s algorithm. Since the general public rejected it, creator Vitalik Buterin began a crowd-funding campaign which financed the rest of the work on the Altcoin exchange.
Future of Blockchain & Crypto Trading
While the future of Bitcoin and Ethereum is still subject to increased speculation, due to the high volatility of both the digital and the real-life market, there is no doubt that the blockchain technology is here to stay.
Lots of upscale companies have already implemented it into their daily operational process. More and more of its possible applications are discovered every day. Digital currencies and transactions are also not going anywhere. The only question is whether the leading cryptocurrency exchanges ten years in the future will be the same ones as they are today.
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