Bitcoin vs Ethereum: A Comparison

bitcoin vs ethereum which to invest in

These hacks are often due to security weaknesses in the projects themselves rather than in the Ethereum network. Only 21 million Bitcoins will ever exist, and the value of one Bitcoin diminishes by half every four years. Thanks to the law of supply and demand, Bitcoin will continue to grow in value. In contrast, the supply of ether will remain constant since Ethereum will release the same amount forever. However, Ethereum has rapidly become the more preferred method for transferring wealth between entities and people. In 2017, just two years after it was launched, Ethereum beat Bitcoin in the number of daily transactions and hasn’t slowed down since. Bitcoin triggered the crypto gold rush when it exploded into the scene in 2009 as the very first global cryptocurrency, and it remains the strongest.

  • There was then a slight dip, before BTC was on the move again – this time going passed $68,000 per token, amid continued interest from major corporations and institutional investors.
  • As the world becomes increasingly aware of the need to protect the environment, many organisations are looking for ways to reduce their impact.
  • Ethereum was launched in 2015, and it has grown to become the most prominent software platform that is open-ended and decentralized.
  • While Ethereum and Bitcoin share many similarities, they were designed for entirely different purposes.

This is evident in the growing number of Ethereum addresses, nodes securing the network, and the ever-growing number of decentralized applications running on the Ethereum network. In a world where censorship is becoming a major issue, a network that no one can stop is a good investment. Besides, thanks to its decentralized nature, Ethereum is also secure since it is almost impossible to take control of the network in a 51% attack. Your decision should be based on your analysis of Ethereum’s core fundamentals and risk tolerance.

How does the use of ethereum as a platform boost its value?

Asides being the first cryptocurrency, it also has the most significant market value. Bitcoin accounts for over 50% of the entire market cap of the crypto sector.

  • It is an indicator of the highly volatile nature of the cryptocurrency market as a whole.
  • Miners are responsible for adding new transactions to the blockchain and ensuring that older ones are valid when new blocks of transactions are added.
  • Note that proof of stake involves the active transaction validation and network support by holding funds in a crypto wallet to ensure safety.
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  • Its currency, Ether, is linked to smart contracts, and can only be traded after a set of predetermined conditions have been met.

There was then a slight dip, before BTC was on the move again – this time going passed $68,000 per token, amid continued interest from major corporations and institutional investors. Due to May 2021 crypto sell off, the prices of major cryptocurrencies declined badly, at the time of writing the price of Bitcoin is trading around $48,000 per BTC. Ethereum, on the other hand, was designed as a platform to facilitate programmatic contracts and applications via its currency. For dummies, a so-called ‘smart contract’ is simply a program stored on a blockchain that runs when predetermined conditions are met. Ethereum is built on trying to elevate the online community and DeFi world. Right now, there are over 3,000 decentralized apps running on the Ethereum blockchain, many of which are cryptocurrencies of their own.


One area that has come under scrutiny is cryptocurrency mining, which consumes a great deal of energy. Ethereum, one of the most popular cryptocurrencies, is currently moving to a new system bitcoin vs ethereum called Proof of Stake . Ethereum transactions are similar in that you need to verify both to add to the blockchain. Mining is the process of adding transaction records to a blockchain.

bitcoin vs ethereum which to invest in

We’re also committed to providing outstanding customer service, so you can always feel confident in your investment decisions. And with our sophisticated app, it’s easy to track your Ethereum investments on the go. So whether you’re a seasoned investor or just entering the exciting world of crypto, we’re here to help you get the most from your digital portfolio. Cryptocurrencies are speculative assets, and as such, they carry a certain amount of risk. Therefore, it’s essential only to invest what you can afford to lose and ensure you have a solid understanding of the market before putting any money down. While Ethereum is volatile, it has shown potential for long-term growth, making it an attractive investment for those with higher risk tolerance.

Earn interest on Ethereum

All investments can fall as well as rise in value so you could lose some or all of your investment. Past performance is not an indicator of future performance. This article does not provide any financial advice and is not a recommendation to deal in any securities or product.

Inflation expectations remained anchored while ETH prices have fallen. A more hawkish Federal Reserve could weigh on ETH going forward.

Reasons for the Current ETH Price (Short-Term View)

Despite the stark difference in their values, the two cryptocurrencies have historically shown a strong positive correlation to each other, according to data. Without the need for powerful computer hardware, proof of stake is considered a more environmentally friendly consensus mechanism compared with proof of work. Essentially, it’s a computer algorithm that makes a blockchain viable. Blockchain is the underlying technology on which cryptocurrencies operate and the algorithm does this by solving what’s known as the ‘double spend’ problem. Being the two biggest names in the crypto space, Bitcoin and Ethereum are often compared with one another. But from the premise behind each name, to their day-to-day trading prices, the concepts actually differ quite markedly. Ethereum’s big price surge arrived in January 2018, when prices skyrocketed to almost $1,400, firmly establishing ETH as one of the top altcoins.

Because of its high market awareness and availability, it is the greatest generally recognized cryptocurrency. Bitcoin additionally makes use of distributed ledger technology, which is intended to prevent deception and identify fraud. Its worth is determined by production and consumption rather than governmental involvement. Ethereum’s blockchain is currently affected by scalability issues.


And given the technology’s potential and impressive list of backers, investing in Ethereum now is a chance to buy low and sell high in the future. Fast forward to the winter of 2020 and Ethereum was well on the road to recovery, as the cryptocurrency market underwent a widespread upturn.

bitcoin vs ethereum which to invest in
Author: Steve Goldstein

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