There has never been a better time to invest in cryptocurrency. As fiat currencies face global challenges due to social, political and economic upheavals – digital and alternative currencies are not only losing their popularity, but their value is also increasing dramatically.
While some may blow their power to say nothing more than a passing phase, those who know are sure that cryptocurrencies like Bitcoin and Etherium will continue to be more popular and may one day be an effective alternative to standard, centralized money.
If you decide to venture into this new and exciting world, knowing which currency to choose can be a bit of a chore. Bitcoin and Etherium are undoubtedly the best performing and most well-known cryptocurrencies available, and as such, they offer a lot of potential for those who want to invest.
There is a lot of controversy about which one is better than the other and although Bitcoin is the most popular it is Etherium which is most likely to grow. So why invest better than Ethereum Bitcoin? Let’s find out.
What sets them apart?
Although Bitcoin has long been the dominant currency on the market, it is now facing some stiff competition from Etherium itself, due to the hype surrounding its additional features and applications.
The main difference between Ethereum and Bitcoin is that the former is not just a digital currency. It is a blockchain based platform that provides users with many features such as smart contracts, etherium virtual machines and of course, ether for its peer-to-peer contract. It is, in essence, digital technology, not just a form of currency.
Bitcoin, on the other hand, is essentially a “digital dollar.” It works in the same way as a Fiat currency, except that it is not centralized, physically real, or controlled by any formal entity like the bank. In other words, it’s your money but keep it in a digital form.
Advantages and disadvantages of etherium
Ethereum is a decentralized digital platform that offers smart contracts written in Turing computer programming languages like Solidarity. Ethers is then created as a “cost” for programs that need to run Ethereum. As long as Ethereum runs, Ethers will always have to implement the code within the platform, and since most projects are now built on top of Ethereum – this means that it is a currency that demonstrates the best long-term potential overall.
The only problem with Ethereum is that the value of each ether is linked to the success of the platform so there is always a possibility that a competitor might come up with a similar project and gaze the Etherium network.
Advantages and disadvantages of Bitcoin
Bitcoin is by far the most well-known and well-established cryptocurrency in the world. It is anonymous, decentralized, and its value is increasing (except for a few blips) in a steady upward trajectory. It is by far the easiest to trade the most recognized and readily available cryptocurrency, and it benefits from ample online resources and support so that even newcomers can grasp it instantly. Due to its large community and following, this means it is unlikely to disappear or devalue quickly, overall, it is a pretty good investment.
When it comes to losses, Bitcoin suffers from a high transaction fee and scaling problems. Since the average mining time for each coin is about 10 minutes and blocks are limited to 1MB, this means you can only allow three transactions per second. This means you face a delay, or you pay a more significant transaction fee to prioritize your transaction.
Why Ethereum comes up
We have seen in recent news that the future of Bitcoin is a bit shaky. With China taking significant steps to reduce and possibly even ban the use of currency inside the country, who knows how many more states will follow suit.
Ethereum, on the other hand, has not (yet) received any such adverse response from the government or government agencies. The unlimited number of ethers available, as well as its tie with the Ethereum platform, means that it has grown significantly over time, as well as being in a much stronger position to maintain its status as a leading currency.
Although the future of Bitcoin may hang in the balance from certain angles, Ethereum seems to be in a much more stable long-term position. For those who are thinking of investing in cryptocurrencies, or even expanding their portfolios, ether is the way to go.