Undoubtedly Dogecoin is gaining a lot of attention from media, which started at 0, and today its estimated worth is around $90 million. But new and young investors shouldn’t take the risk of investing in Dogecoin as it can burst anytime. Instead, if investors want to take crypto space seriously, choose to invest in the two most popular cryptocurrencies of all time, known as Bitcoin and Ethereum. You can use The News Spy to make money with bitcoins. Ethereum is more like a platform than a cryptocurrency and has its token known as Ether. Bitcoin is more like an older brother of Ether, but where bitcoin’s value surged 500% in the past year, Ether’s value surged around 1500% the same year.
Bitcoin and Ethereum are quite similar in many ways but have many points of difference as well. Here let’s read more about these two most popular digital coins.
Bitcoin was developed in 2009 as the very first cryptocurrency developed with the motive to replace fiat currencies. It is a digital currency created to allow two parties to directly contact each other without involving any intermediaries like financial institutions or government. The mysterious creator of bitcoin made a breakthrough by developing a digital public ledger known as blockchain that records each bitcoin transaction that takes place on its network.
By developing this time-ordered ledger, the problem of double-spending was solved. Blockchain makes sure that no one can fake bitcoin and manipulate the network or blockchain ledger. For the first time in April 2021, bitcoin’s price reached around $65,000.
Ethereum was developed in 2013 by a teenager named Vitalik Buterin. The merits and potential of bitcoin motivated Vitalik, but as soon as he learned more about bitcoin, he was frustrated with its limitations. He developed a system on blockchain that was helpful in hosting the self-executing agreements known as smart contracts. Ethereum overcame all the flaws or limitations of bitcoin.
What features or things did Ethereum borrowed from Bitcoin?
Bitcoin’s idea of operating transactions using a massive network of computers that are decentralized in nature that also share the entire record of transactions was the main feature that Ethereum borrowed from Bitcoin. Both Bitcoin and Ethereum are built as open-source software that means these are publicly viewable, which allows developers to make changes and improve the systems. Both the systems or network rely on special contributors referred to as miners that use specialized, powerful computers to solve highly complex calculations to verify and validate the transactions. In return, the special contributors are given rewards in terms of digital currencies.
The verification system that is used in both the system is known as proof of work. Both the systems use the proof of work consensus method, whereas this method has come under the increasing usage of energy that network of computers use and the pollution that is caused due to consumption of energy. Ethereum was created after bitcoin. Therefore, it worked on the consumption of energy, and the bitcoin network is known to use more energy.
Current price status and market of Bitcoin and Ethereum
The prices of both the digital coins fell in 2018 and continued to drop till 2020. However, the reasons behind the drop in prices were different, but during this period, the banks and governments have been benefited much. But there was a great comeback of both the digital coins after the outbreak of the Covid-19 pandemic.
- Bitcoin is highly used in the mainstream as big companies have started to invest and accept bitcoin. The chief executive of Tesla Inc. invested around $1.5 billion in bitcoin, which made him recognized as “the master of the digital coin.” Even financial institutions are becoming comfortable with bitcoin and are planning to invest in it.
- Ether, on the other hand, is planning to switch the way or method in which its network operates. It has been noticed that Ether used to complete the transactions on the Ethereum network is being destroyed at the time of interaction. This highly affects the supply of Ether and is putting pressure on its price to increase. Additionally, Ethereum is planning to change its architecture to switch to another method as a verification mechanism. It is trying to change the processing time of transactions and make it process transactions faster.