Everything in the world has digitalized, and networking has made the world more interconnected. The Internet has dramatically changed our lives, and one of the worth mentioning advancements is a digital currency. Bitcoin and Ethereum might be familiar terms, but many people are still confused about Bitcoin VS Ethereum.
As both are cryptocurrencies. Let’s first throw a little light on cryptocurrency before proceeding to the Bitcoin VS Ethereum debate.
What is cryptocurrency?
Cryptocurrency is the digital currency that has gained world attention in a short period. As compared to real currency, it is decentralized and works in a bit of a democratic fashion. Any cryptocurrency change is made after the approval or agreement of the majority of users.
Like fiat currency, cryptocurrency is a medium of exchange, and it also lets you buy goods and services. Furthermore, it is secured by using a special computer coding called cryptography. These codes are hard to crack.
Below are the most common types of cryptocurrencies:
- Bitcoin Cash
The most known cryptocurrencies among all are Bitcoin and Ethereum. Let us first give you a brief introduction of both currencies individually and then will move toward comparison and differences.
Bitcoin, profoundly known as BTC, is the first cryptocurrency ever created. Moreover, it is a digital dollar and was launched in January 2009. People buy bitcoin with the belief that its price will increase substantially in a few months or years.
Any government or organization does not control BTC, and it’s not physical.
To know more about Bitcoin, click here.
The cryptocurrency of the Ethereum Network is called Ether. It is second among the top most famous cryptocurrencies.
Furthermore, it is an open-ended decentralized software platform that enables the deployments of smart contracts.
They decentralize submissions to be built and run without any downtime, fraud, control, or interference from a third party.
Ethereum has its programming language. It is run on a blockchain and enables developers to build and run distributed applications.
Bitcoin vs. Ethereum:
Both the cryptocurrencies work on the same technology called blockchain, but the similarity ends here. Following are the key differences between BTC and Ether:
1. Bitcoin is the Pioneer:
Bitcoin was launched in 2009 whereas, Ethereum came into existence in 2015, so technically, bitcoin was the first to use blockchain technology ever.
2. Different Aims:
Though Bitcoin and Ethereum are both cryptocurrencies, they have different aims, as bitcoin is an alternate national currency. In contrast, ethereum aims to provide a platform to facilitate immutable, programmatic contracts and applications by using their money. So, Bitcoin is a digital currency, and Ethereum is a smart contract.
3. Different Transactions:
Bitcoin has manual transactions; on the other hand, Ethereum’s transactions are automatic or programmable. Secondly, the transaction speed of Bitcoin is in minutes whereas, Ethereum’s transaction is in seconds.
The currency of Ethereum is called Ether, and it is used as a fuel to fire the Ethereum network and power transactions; on the contrary, bitcoin is virtual money.
5. Coin Supply:
Bitcoin only has 21,000,000 coins and is created upon demand and supply, whereas Ethereum is unlimited in production.
How Long Does It Take for Bitcoin Vs Ethereum Transaction to Clear?
The Bitcoin transaction may vary from 10 minutes to over a day. Two things determine the Bitcoin transaction including the amount of network activity, and the second is transaction Fees.
Moreover, the transaction is verified by mining, and miners solve the complex puzzles to complete the process.
If you pay the standard gas price, the Ethereum transaction takes 15 seconds to 5 minutes on an average day. The factors that might slow the transition process could be a low gas price paid as the miners charge higher fees to solve the mines and your application has to wait long.
Mining Bitcoin VS Ethereum:
The primary function of mining between both cryptocurrencies is the same. The difference is that; Bitcoin utilizes SHA-256 whereas, Ethereum uses an ethash mining algorithm. Moreover, both currencies consume a large amount of electricity for mining.
Bitcoin is a digital currency whereas Ethereum is an open-source platform to run decentralized digital applications.
Both of them are running on blockchain technology. Ethereum was built to compensate bitcoin, but both of them have become competitors now.