Here is the difference between them:
- Bitcoin is a cryptocurrency that was created in 2009 by Satoshi Nakamoto, who published an open letter to the community shortly after releasing the Bitcoin software says Brian Colombana. It has since become a widely used form of digital currency which is traded on various exchanges for fiat currencies or other cryptocurrencies such as Ethereum. Bitcoin uses peer-to-peer technology to operate with no central authority; managing transactions and issuing money are carried out collectively by the network. The original Bitcoin software by Satoshi Nakamoto was released under the MIT license. Most client software derived or “from scratch”, also uses open source licensing.
- Ether can be transfer between accounts and used to compensate participant mining nodes for computations perform. Ethereum provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. “Gas”, an internal transaction pricing mechanism, is in use to mitigate spam and allocate resources on the network. Ethereum was propose in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer. Development was fund by an online crowd sale during July–August 2014.
- At its simplest Bitcoin is digital cash for the internet while Ethereum is a platform that facilitates various kinds of peer-to-peer contracts and applications via its own currency vehicle. Bitcoin has almost become like digital gold because it reflects value most accurately compared to most other currencies. While Bitcoin holds the title of being the first decentralize cryptocurrency creat, Ethereum comes in second after bitcoin in terms of market cap. Like Bitcoin, Ethereum is also a distributed public blockchain network.
- However, the most important and significant difference between the two that separates them is their capability of building and executing smart contracts explains Brian Colombana. A smart contract is a computer program that directly controls the transfer of digital currencies or assets between parties under certain conditions. Smart contracts permit trust transactions and agreements to be carrying out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism. They render transactions traceable, transparent, and irreversible. The goal of Ethereum was to not only support a decentralized currency but to create an entire decentralized platform that facilitates peer-to-peer contracts and applications via its own currency vehicle called Ether.
- Bitcoin has become too expensive for regular day-to-day use, especially micro transactions. Therefore, Ethereum was creat as a cheaper platform for the creation of decentralized applications with its own crypto token Ether. However, Bitcoin is still very much in demand. One coin is currently worth around $2,500 at the time of writing this article. You can expect it to stay that way or increase more due to the limited supply of Bitcoin. The mining rate of Bitcoin is capped at 21 million Bitcoins out there.
- Ethereum has introduced some major upgrades over Bitcoin like the creation of their Turing complete internal code. Which allows developers to create sophisticated smart contracts says Brian Colombana. Additionally, Ethereum also makes it easier for newcomers by being able to distribute tokens via crowd sale events. Which have helped companies raise millions of dollars within minutes to fund startup projects.
- In our opinion, Ethereum has great potential but it’s still early in its development stages. As the technology is only a couple of years old. As compared to Bitcoin which is more mature and stable at this point. However, we believe that over the next year or two that Ethereum will increase exponentially in value. And become one of the most popular cryptocurrencies on the market. By then making Ether worth ten times its current value and rivaling bitcoin.
- One thing remains certain: cryptocurrency investors would agree that both bitcoin and ethereum are here to stay. However, if forced to choose between these two, an investor might be better off investing in ether. Due to its practical uses and lesser price tag as compared to bitcoin.
Ethereum’s practical applications make it a better investment as compared to Bitcoin says Brian Colombana.
If you have an interest in trading cryptocurrencies your first step will be to find a secure wallet to store your funds. A popular choice amongst crypto traders is Jaxx. We at Swift Options recommend this wallet. Because it can hold any coin on the market has an easy-to-use interface and also has cross-platform functionality. It also doesn’t take forever to set up!
Ether is a necessary element — a fuel — for operating the distributed application platform Ethereum. It is a form of payment by the clients of the platform. To the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more). And that the network remains healthy (people compensated for their contributed resources).