Bitcoin and Ethereum are the two top and most popular virtual currencies that the world has seen. They have soared in the past 12 months, and this has ensured that they have secured the two top spots in the cryptocurrency market. But, if you invest on one of the other, do you actually know the similarities and differences between the two?
If the experts are right, Ethereum will begin to challenge Bitcoins top position in 2018, as the value has absolutely soared in just 12 months, appreciating by nearly 12,500 percent. At the beginning of 2017, a token was worth less than $10, compared to the $1,240 it is worth today.
Ethereum still has a long way to go before it catches up with Bitcoin, who also had a good year in 2017, and one Bitcoin is now worth more than $14,000 per coin. The market capitalisation is also double that of Ethereum as well.
They both do share some similarities though – they are both digital currencies that have been based on blockchain technology that can be used to send money across borders, without the need for a traditional bank. They are also both mined coins. However, it is their purposes that make them fundamentally different.
Bitcoin was the first cryptocurrency to be developed in 2009, and was created to be an alternative to traditional currencies. This is completely different to Ethereum, which was developed as a platform that facilitates companies building new applications and programs. Ethereum has stated on its own website that Ether would not be possible with Bitcoin and that they truly complement each other. They have also stated that Ether should be treated as a fuel, whose purpose is to pay for computation, and not as an alternative to money.
Steven Nerayoff, the co-founder of Ethereum, agrees with other professionals that it will continue to surge in 2018; he said;
“What you’re seeing with Ethereum is exponential increase in the number of projects – there are billions of dollars being poured into the ecosystem right now – maybe 10 times more projects this year than last year, which could easily lead to a doubling, probably a tripling in price by the end of the year…The entire space is increasing…There is huge interest by the public and there are more areas in which the public can invest, even in Bitcoin, so you could just see an expansion in the entire space.”
Image Source: Pexels