Despite the fact that an ordinary user doesn’t see any difference between Bitcoin and Ethereum, the two digital currency units significantly differ in both technical specs and the possibilities they provide to users. Essentially, Ethereum is not just a Bitcoin upgrade; this cryptocurrency also has a wider functionality and provides you with more advanced services on the same blockchain platform.
In the Ethereum system, there is an opportunity to create “smart contracts,” which allow for exchanging assets between participants when certain conditions are achieved. In other words, Ethereum is not only a money transfer system, but it is also a full-fledged infrastructure, with crypto coins being a kind of payment for the time of using the service.
However, despite all the advantages of Ethereum, Bitcoin continues to be the most popular currency for accumulating digital assets. Although a lot of similar solutions have been launched recently, Bitcoin is still more credible than its counterparts. However, this does not mean that the Ethereum system and its monetary units do not represent any interest for investors. Given the young age of this cryptocurrency, the growth of its popularity is really impressive: it already takes the second place in market capitalization and daily trading volume. But still, it is difficult for Ether to keep up with the popularity and scales of the “big brother.”
One of the reasons for this trend is the limited money supply in Bitcoin. There is a clear emission limit for this cryptocurrency, set at 21 million coins. One day, the production of Bitcoin will cease, so its rate will decrease. In the case of Ethereum, the release of coins will be a regular event, and the number of emitted coins will be as required to ensure the stability of the digital money unit.
Bitcoin is just the best means of money accumulation for many users. No surprise that more and more people choose Ethereum as a transfer of assets between people and organizations. Although in mid-2017, Ethereum processed a small number of daily transactions, at the current point of time the “younger” brother is significantly ahead of Bitcoin by this indicator.
Why is there such a trend? The fact is that Ethereum can be used as a platform for other cryptocurrencies; moreover, transactions with Ether are confirmed faster in the ethereum-blockchain system compared to the Bitcoin-blockchain system. The developers took into account the weaknesses of Bitcoin, and the new cryptocurrency has become more profitable compared to the “digital gold” in this regard.
Another advantage of Ethereum is that the transaction fees in this system are lower than in Bitcoin. Although some fear that the increase in commission will affect the digital money rate, this is unlikely to happen in the near future.
Now we will try to find out what place both cryptocurrencies occupy and how popular they are for the businesses - from traditional investors to those who promote their products and services online.
The most promoted and expensive cryptocurrency in the world - Bitcoin - is attractive because it represents a tempting prospect of maximizing profits in the future. According to market experts, Bitcoin is increasingly taking root in the global financial markets. Increased investor interest, in turn, contributes to the growth of the money unit. At the same time, companies that decide to operate Bitcoin in their activities should be prepared:
The Ethereum system was created primarily for developers. At the same time, the solution creates impressive opportunities for representatives of business circles. At the moment, there is an extensive campaign to inform entrepreneurs about the functionality of decentralized applications, which allows creating Ethereum. With their help, you can optimize many areas of activity, including logistics and workflow approaches.
All in all, the main advantage of Ether is not its attractiveness as a money asset but its revolutionary technological approach, which allows speeding up, cheapening, and optimizing business processes. The Enterprise Ethereum Alliance was established in 2017. Nowadays, it is a union of about two hundred organizations testing the use of Ethereum in various projects. Among members of the association are such giant companies:
For example, BP is engaged in testing Ethereum to increase the speed of settlement of transactions, the rest are about the same - trying to optimize the processes after these processes have reached the maximum level of scalability.
Consider the main technical points that distinguish Bitcoin from Ethereum in the eyes of those who expect to earn on the extraction of cryptocurrencies:
Both Bitcoin and Ethereum have armies of fans and those who will never invest their money in digital coins. If you want to invest in the world's most popular cryptocurrency, you should choose Bitcoin as an asset - it continues to remain attractive to many. However, it is important to remember that fluctuations in the rate of this cryptocurrency can both return investments a hundredfold and “eat” them.
Ethereum is more attractive from the point of view of regular transactions due to small commissions charged for operations processed within the network. Decentralized Ethereum-based applications can provide invaluable assistance to companies in addressing workflow issues, minimizing the risk of double interpretations. However, as in the case of Bitcoin, investing in this currency should be preceded by careful market situation research.
For some people, investing in cryptocurrency is nothing more than a fantasy; for others, buying digital assets is a profitable source of income. While some users are thinking about where to invest their money, there is someone who actively invests and breaks a big jackpot. If you want to increase your capital with digital investments, you are to follow the golden rule. Before you spend money on buying digital coins, find out how risky such investments are, what results you can expect from them, in which currency it is more profitable to invest in at this particular moment of time.
Investing in cryptocurrency is a real opportunity to get regular income without any extra efforts from your side. However, when investing in assets in digital money, do not forget about the potential risks you may face. Regardless of its type, cryptocurrency does not have official status at the state level and is still considered an experimental means of calculation. We wish you multiple increases in capital regardless of the type of currency!