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What is the Difference Between Ethereum and Bitcoin?

The difference between ethereum and bitcoins has always been a trendy topic between investors and traders who have newly stepped into the crypto world. The reason these two cryptocurrencies are so famous is that these two are the most valuable cryptocurrencies in the world.

For a long time, people have been using these cryptocurrencies as digital assets to earn money by trading and investing in them. Millions of traders make daily profits from trading in cryptocurrency. If you are also interested in trading in cryptocurrency then visit this site and sign up now and start pulling in profits.

Bitcoin vs Ethereum – The overview

Bitcoin

Source:roinvesting.com

Bitcoin is the oldest cryptocurrency launched in 2009 by Satoshi Nakamoto. This mysterious man has an idea in a white paper of digital peer-to-peer transactions of an online currency on a secured network without interference from the central authority, banks, or financial institutions.

The concept behind bitcoin was to have a decentralized currency where people can have control over their own money and a mode of payment to keep the identity unknown of both the parties involved. The concept of digital currency or cryptocurrency started with bitcoins based on blockchain technology.

The balance and transactions made with bitcoins are recorded in a public ledger in the cryptographically secure server. The transaction once made cannot be reversed or altered from the ledger. The concept of cryptocurrency was initiated with Bitcoins and there has been constant up-gradation in this digital currency.

This digital currency came out to be as an alternative to government-owned FIAT currency which had the primary function of a medium of exchange and store of value. Now as people are getting familiar with the concept they have found new ways to earn profits from it.

Some buy bitcoins to invest in them expecting it would give them a higher return whilst many people are buying just to use it as a mode of payment. The number of investors and traders of bitcoins has increased significantly over the last few years making it the most valuable and popular cryptocurrency.

Ethereum

Source:businessinsider.com

Ethereum is not actually a cryptocurrency like bitcoins. Soon after the launch of bitcoins, in 2013 the concept of ethereum was launched as the largest and well-established decentralized network. It is based on open-source blockchain technology to develop applications that can feature more than circulating the use of cryptocurrency.

The features of ethereum like smart contracts and decentralized applications led to the creation of their native cryptocurrency for their platform commonly known as Ether. The dApps on the ethereum network can run without any interference from third-party users. Hence, maintaining complete privacy and security from online frauds and scams.

Ethereum is the second most valuable cryptocurrency and some believe it has the potential to surpass bitcoins as the most valuable cryptocurrency. Ethereum technology is great for innovation and used by several companies to develop and run new programs and applications.

Ether is the native cryptocurrency that is developed to serve the purpose of running the Ethereum network and also function like any cryptocurrency as a medium of exchange. Like bitcoins, ether also provides all the functions of a digital currency and it also facilitates the use of smart contracts.

Smart contracts can be programmed distinctively with pre-set rules. Once these rules are achieved it directly leads to the occurrence of specific output. Several other digital currencies are based on the same concept as Ether, developed in the ethereum network which was later transferred to a different blockchain with a private or public server.

Bitcoin vs Ethereum – The key difference

The common primary distinction between bitcoin And ethereum is that bitcoin is just a digital currency used as a medium of exchange whilst ethereum is an open-source blockchain technology used by companies and businesses to develop and run applications.

Both cryptocurrencies function on blockchain technology, ethereum being a wider concept and serves functions more than a cryptocurrency. Ethereum has more features than bitcoins and is clearly more powerful. It has its native cryptocurrency Ether that can serve all the functions bitcoins provide and is way faster to process transactions.

Both cryptocurrencies were developed with completely different purposes and goals. Bitcoins was initially developed as an alternative to FIAT currencies that are owned by the government, facilitate peer-to-peer transactions and use it as a medium of exchange.

Ethereum was developed with the sole purpose of designing a decentralised network where transactions cannot be altered or reversed including other features like decentralised applications and smart contracts.

Bitcoin Vs Ethereum – The profitable cryptocurrency to invest

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Cryptocurrencies nowadays are mostly used for investment with the expectation of receiving a higher return in future. If you are wondering which cryptocurrency is more profitable to invest then it mostly depends upon the amount of risk you can bear.

Both have different advantages over others. Considering these facts you must decide as to which cryptocurrency is profitable for investment. Considering the uses and features of both the digital currencies now it’s up to you which currency you are willing to invest in.

Talking about bitcoins there is no doubt Bitcoin is the most valuable cryptocurrency right now and it will take years for any other cryptocurrency to surpass it. Bitcoins have the highest number of institutional investors and several companies have even started to accept payments in bitcoins which will lead people to buy and invest more in bitcoins.

On the contrary, ethereum has more features than bitcoins which makes it the second most valuable cryptocurrency in the world. The ethereum network supports dApps and smart contracts which makes it used by several businesses and companies to develop and run new applications.

The Bottom-line

Both bitcoins and ethereum have different features that make them unique and different from other cryptocurrencies. Besides the differences, both of these digital currencies have volatile nature and a riskier option to invest in.

Both of these cryptocurrencies were created with different purposes which they have skillfully achieved. Both of these digital assets are profitable to invest in and have a revolutionary impact ahead on the financial world.

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