Bitcoin Vs Ethereum: Which Is The Best?

By RFereru | CryptoStory | 4 Sep 2022


Of the 1,600+ available cryptos in the market, bitcoin and Ethereum are in the top 3. Bitcoin is the largest cryptocurrency by market cap, while Ethereum is second largest.

Bitcoin and Ethereum are also two of the largest cryptocurrencies by market capitalization and by volume of trade, but when looking beyond their shared popularity, the two are quite different. Ethereum and Bitcoin are probably the most popular cryptocurrencies in the market today. Ethereum and Bitcoin are traded extensively in centralized crypto exchanges, with market forces determining their values.

While Bitcoin is used as a medium of exchange and store of value, its native cryptocurrency is used for interoperability with applications in Ethereum (ETH). While Bitcoin (BTC) was created as an alternative to national currencies, and therefore strives to be a medium of exchange and a store of value, the Ethereum network is intended to be a platform that facilitates immutable, programmed contracts, as well as applications through it.

Ethereum (ETH) also facilitates payments using its in-house cryptocurrency, the ETH, but by design, its reach is far wider than bitcoin (BTC). Decentralized applications built on Ethereum (ETH) enable the use of its native cryptocurrency and other cryptocurrencies in many different ways, including being used as collateral in loans, or being loaned out to borrowers for interest.

Ethereum was not intended as a replacement for Bitcoin, but was created to enable smart contracts and more efficient, decentralized executions of dApps over the Ethereum network, with an eye towards making distributed applications easier. Bitcoin (BTC) and ETH are both digital currencies, but Ethers primary goal (ETH) is not to establish itself as an alternative currency system, but rather to facilitate and monetize the running of Ethereums smart contracts and dapps platform. The performance of Bitcoin (BTC) and Ethereum (ETH) is frequently used as a reference point for measuring the general health of the cryptocurrency market.

Bitcoin (BTC) is the first cryptocurrency to be created, and is considered to be digital gold, or gold 2.0, whereas Ethereum can be considered a decentralized computer for the world. Ether (ETH), a cryptocurrency on the Ethereum network, is perhaps the second most popular digital token, behind bitcoin (BTC). The major difference is that Bitcoin is designed for use as currency, whereas Ethereum is mostly a platform to develop software on top of blockchains.

The cores of Ethereum and Bitcoin are similar, however, both these cryptos are powered by blockchain technology for the security of their networks. Bitcoin is far more limited than Ethereum because of its backbone technological infrastructure. While, Bitcoin works best as a peer-to-peer transaction system, Ethereum works better when you need to build and construct distributed applications and smart contracts.

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RFereru
RFereru

I am passionate about the world of software development, blockchain and cryptocurrencies. My hobby is photography.


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