Some people describe BTC and ETH as the Coke and Pepsi of the digital currency world. Within the past several years, tens of thousands of cryptocurrencies have entered the market. Even so, Bitcoin and Ethereum stand out as the standard of comparison for other coins and each other. Thus, people who want to learn about digital currency should start by exploring these two market leaders.
Compare Ethereum Vs. Bitcoin
Even people who barely know anything about cryptocurrency have probably heard of Bitcoin and Ethereum. That’s because they represent the market’s two most significant digital coins.
A quick summary of Ethereum vs. Bitcoin should include:
- BTC: Bitcoin launched in 2009 and stands out as the first true cryptocurrency. Over a decade later, it still holds the top market capitalization and name recognition rank. Bitcoin also capped the number of coins it can ever produce at 21 million. Today, Bitcoin’s market cap exceeds $400 billion.
- ETH: Ethereum launched in 2015 and obtained the second place rank by market cap rather swiftly. Ripple briefly displaced Ethereum at number 2, but Ripple now sits at number seven, and Ethereum took back the spot behind Bitcoin. Ethereum does not cap the total amount of coins produced. Today, Ethereum’s market cap sits just under $150 billion.
Bitcoin’s founders envisioned an alternative to traditional money, like dollars or euros. This crypto introduced people to blockchain tech, a transparent, distributed ledger.
Ethereum also relies on this same technology. At the same time, Ethereum’s founders made their product programmable. They provided built-in support for smart contracts and the addition of other digital coins to the chain. Thus, Ethereum offers a more versatile platform than Bitcoin does.
Proof of Work Vs. Proof of Stake
Miners generate new Bitcoin with proof of work. POW means that miners compete to solve crypto puzzles to create new coins. Ethereum developers also used this model initially. In contrast, the amount of coins a miner locks up impacts their chance of generating new coins with proof of stake. Ethereum plans to replace proof of work with proof of stake when it rolls out Ethereum 2.0.
Is Ethereum or Bitcoin Better?
Both of these widely-known platforms offer pros and cons. Bitcoin enjoys the broadest name recognition and a higher current market cap. Ethereum can provide a network that supports other digital coins, marketplaces, and decentralized applications. Also, Ethereum’s move to proof of stake should consume less energy, an essential consideration for the future. Still, Bitcoin has not remained static. A new update to Bitcoin called Taproot introduced smart contracts and improved the network’s efficiency and privacy.
Is Bitcoin or Ethereum a better value? The value of all digital currencies has proven highly volatile in the past few years. Still, people interested in digital currencies might start with these top two coins. As the market leaders, Bitcoin and Etherum attract the most interest and support.