Blockchain technology and cryptocurrency have been two of the much-discussed topics since the time of their inception. Till now, Bitcoin has been in the number one position in the world of cryptocurrency. Created in 2009 by Satoshi Nakamoto, it offers fewer transaction fees than traditional online payment processes. It is a cryptocurrency run by a decentralized authority. And along with this, its companion Ether has been holding the second position in cryptosphere. Ether or Ethereum is a blockchain platform with its own cryptocurrency. Also, it has a programming language called solidity. This article is going to discuss the details of Ethereum vs. Bitcoin. Before delving into that, let’s discuss what Bitcoin mining is. Also, it is essential to know about Ethereum. So, let’s proceed.
What is Bitcoin: How Bitcoin Mining Shapes the World of Cryptocurrency
As a cryptocurrency, there is no physical form of Bitcoin. Instead, the balances are kept in a public ledger. The ledger can be accessed by everybody transparently. However, the government has no intervention in it. The individual Bitcoins have no value. Also known as BTC, it has paved the way for the introduction of hundreds of other cryptocurrencies. They are collectively known as altcoins. With the help of blockchain technology, Bitcoins are created. The process continues with the distribution and trade of the coins. Blockchain is basically a collection of blocks where each block is a combination of transactions. The Bitcoin transaction fills the blocks, and that is how the process continues.
Now, let’s come to the term called Bitcoin mining. What is it? It is a process of creating Bitcoin by solving complex computer puzzles. Through this process, the miners solve the puzzles and make the Bitcoin payment network more secure and reliable. By verifying the transaction information, the network is marked safe. The transaction is defined as the transfer of Bitcoin from one place to another.
What is Ethereum: The Definition
It is an open-source blockchain platform with its own cryptocurrency, Ether or Ethereum. As per the May 2021 report, it is in the next position after Bitcoin regarding market value. It is a platform used to create and share business, financial services, and entertainment applications. It is often known as the programmable blockchain. Thus, it remains different from Bitcoin. It was launched in 20215, and since then, it has been gaining popularity among cryptocurrency users. However, it could not bit the market value of Bitcoin. Even today, as we said, it is in the second position. But soon, it seems to surpass Bitcoin in respect to the value in the market.
Will Ethereum Overtake Bitcoin: The Explanation
Recently, there is a hot topic of debate in the financial market. It is said that Ethereum may soon overtake Bitcoin. How far is this true? Will Ethereum overtake Bitcoin? Here, we have tried to explain the whole factor.
It is true that The price of Ether is going higher than Bitcoin. Multiple factors like decentralized Finance (DeFi) protocols, decentralized applications, and non-fungible tokens. As per the recent survey nearly 260 % gains are found in this year for Ether, while the growth for Bitcoin has reached 87%. With an extensive gain of $2750, the position of the Ether should be re-thought. Truly, it seems to go up, leaving behind Bitcoin. Many major institutions like Mastercard, JPMorgan, and UBS are now paying attention to the Ether.
To get answers for whether the Ether is going to overcome Bitcoin or not, we must look at the points of Ethereum vs. Bitcoin. Both of the cryptocurrencies work on a proof-of-work or PoW consensus. As a digital currency, Bitcoin is used as a store of value investment by investors. On the other hand, Ethereum goes beyond just being a cryptocurrency. It works as a network supporting several smart contracts. In addition, Ethereum also runs Decentralized Finance projects. Multiple apps run on the Ethereum network. One of the dApps that runs on the Ethereum blockchain is Crypto Kitties. This is an interesting app where users create, distribute and sell digital cats. So, if we study Ethereum vs. Bitcoin, we can see how Ethereum is accumulating money through Defi projects on the blockchain. Considering all of the factors, it can be said that if things go well, soon, Ethereum will replace Bitcoin for the first position in Cryptosphere.
The Conclusion: Ethereum vs. Bitcoin
So, as we discussed, depending on the points of Ethereum vs. Bitcoin, Ethereum can overcome Bitcoin in 2021 regarding the price. All it needs is just a little more growth and innovation. However, it still needs some time. Till then, if Bitcoin manages to continue its legacy, then things will take a different shift. Let us wait and watch how the world of cryptocurrency runs.