Bitcoin

The cryptocurrency Bitcoin was launched in January 2009. Satoshi Nakamoto introduced it as an online currency that, unlike paper money, has no physical form and is not controlled by any central authority. Today, Bitcoin still retains these characteristics and is mainly used as a means of savings and a way to conduct transactions.

Interestingly, one of its key features is the limited number of coins: the maximum supply is 21 million Bitcoins. This feature makes $BTC a deflationary asset, unlike paper currencies.

Another feature of BTC is the volatility of its price. Therefore, Bitcoin is subject to speculation in the cryptocurrency market. But that's not scary! Even despite this and other factors, Bitcoin continues to attract the attention of investors and blockchain supporters for over ten years.

Ethereum

What is the ETH currency? $ETH is considered one of the most significant cryptocurrencies and blockchain platforms with additional functionality. Created by Vitalik Buterin in 2015, it offers the ability to create smart contracts and decentralized applications (DApps) without control or interference from third parties.

Ethereum is typically used for trading on exchanges, as an investment, or as a means of payment for goods and services. The same goes for many other coins. But why does Ethereum hold second place in market capitalization? This is achieved through technological innovations and a wide range of opportunities for developers. That is why this cryptocurrency remains a popular subject for research and investment to this day.

Bitcoin and Ethereum: key similarities

Of course, Bitcoin and Ethereum, being digital assets, have common features. Here they are:

  • Decentralization: Both assets operate in a decentralized network. Therefore, they are not regulated by central banks or other financial authorities. Instead of banks, several nodes (computers) participate in regulation, ensuring the security and reliability of transactions.

  • Blockchain: They are both based on a public decentralized distributed ledger called blockchain. The principle of operation is that all transactions made in BTC and ethers are recorded and stored in blocks. This ensures transparency and confirmation of transactions.

  • Leaders of the crypto market: Both coins occupy the first and second places in terms of capitalization. In general, they are supported by a large and active community of developers, miners, and users.

Key differences between Bitcoin and Ethereum

#bitcoin - Limited number of coins – 21 million. Operates on the Proof of Work (PoW) consensus mechanism. Digital currency and alternative to paper currencies. Higher price. Transaction confirmation takes about 10 minutes. Scalability of about 7-8 transactions per second.

#Ethereum - No maximum issuance limit. Operates on the Proof of Stake (PoS) consensus mechanism. Universal platform for creating smart contracts and decentralized applications. Lower price. Transaction confirmation takes a few seconds. Scalability of about 16-20 transactions per second.

What is better: Bitcoin or Ethereum

It's hard to answer. Although many people wonder why Ethereum is better than Bitcoin, there is no guarantee that this is true.

In fact, neither of the coins is necessarily better or worse than the other. They are simply different and have different characteristics. That's why you should decide what is better Bitcoin or Ethereum yourself, taking into account some aspects:

  • Technological capabilities: Both coins can be used for financial transactions. However, if you want to use them not only for this purpose but are also interested in developing complex applications, it is better to choose Ethereum. Because it offers more advanced technological capabilities due to the functionality of smart contracts.

  • Purpose of use: Determine what you choose the coin for. If you need a means of exchange or an investment asset – choose BTC. Why? Because it is a more suitable option due to its widespread use and popularity. But if you are interested in smart contracts, decentralized applications, or NFTs, then choose Ethereum.

  • Cost: Transaction fees for these coins differ. Although BTC-based transactions are slower, Ethereum-based transactions are generally executed much faster. But for this convenience, you have to pay a high price known as gas fees.$TRB

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