When it comes to cryptocurrencies, there are likely two major ones that you have heard of. They are probably Bitcoin and Ethereum. Nonetheless, what you might be thinking about is the actual differences between the two cryptocurrencies. If you want to know what they are, then it is worth reading the rest of this guide, which has been created to outline the major differences between Bitcoin and Ethereum. By reading this guide, you will then have the opportunity to be able to make a smart decision when it comes to investing in cryptocurrencies. Take a look now to learn about it.
Their Date of Conception
It’s worth bearing in mind that neither Bitcoin nor Ethereum were the first cryptocurrencies. That honor goes to eCash, which was developed in 1990. Nonetheless, it’s worth bearing in mind that, although these electronic-type currencies were influential within the community, they didn’t receive a large amount of attention. That would all change when Bitcoin burst onto the market in 2009. Ethereum came around six years later when it was finally launched in 2015.
Their Uses
While the applied uses of cryptocurrencies and their underlying platforms are arguably manifold, it’s worth looking at the intended use of both cryptocurrencies here. When Bitcoin was launched, it was primarily intended to be used as an alternative to fiat currency — the technical term that is used to refer to traditional currencies, such as the Dollar or the Euro. Conversely, Ethereum is intended to be used as an entire platform and ecosystem that people can use in all different ways. If this is something that you are interested in, then you can check out the Ethereum live price index over at OKX.
Their Supply
Bitcoin was created by a mysterious man known as Satoshi Nakamoto. When he created the currency, he limited the supply to 21 million Bitcoin in its entirety. This means that it was intended with having a certain scarcity value, such as gold. Conversely, Ethereum doesn’t have a total cap but does have a cap when it comes to its yearly supply. This means that, potentially, Ethereum could become more influential in the future, as more can be created when the time comes.
Their Consensus Algorithm
When a cryptocurrency is made, it needs a way to make sure that the transactions are legitimate. Bitcoin uses something which is called the proof-of-work algorithm that is stored on the blockchain. Conversely, Ethereum is moving towards a proof-of-stake algorithm instead. If you are interested in working on this, you can get paid in Ether for your efforts, making it an interesting way to gain extra income.
Conclusion
This guide has aimed to give you just a few of the differences that exist between Bitcoin and Ethereum. Now that you know of these, it should give you a clearer idea of the type of cryptocurrency you might want to invest in. It’s recommended to revisit this guide before you make that final decision, as well as other resources online.