This year has been crazy when we talk about cryptocurrency: abysmal growth and falls have passed in many of these digital assets and the competition/obsession for being the strongest of all is really hard. Nevertheless, it is doubtless that Bitcoin is still at the top of the chain but predictions say that Ethereum could surpass it on 2018. In this matter, it would be interesting to compare both cryptocurrencies so we can draw our own conclusions.
What is the main difference?
Well, the fact that Ethereum was created from Bitcoin open-source says a lot about the basic differences between the two of them; the first one is actually the very first cryptocurrency in the world so is the most known, installed and houses any kind of users and investors. On the other side, Ethereum is one of the newest cryptocurrencies but despite that, it quickly positioned right after BTC thanks to its diverse platform that might not be very friendly for the newest users but it is slowly getting more approachable for them as it is quite useful for the most expert traders.
Is in that Ethereum platform where the primordial difference between Ether and Bitcoin is. As BTC is the first cryptoasset, the chainblock was newly developed and though only in relation to the cryptocoin trade, period, that is its final object in order to maintain a relatively stable e-currency. Ethereum, on the contrary, is an integrated platform where users can develop other projects and transactions besides trading cryptocurrencies.
Ether is not only one of the concepts this platform seeks to develop and, as the system grows, it is possible that other cryptocurrencies depend on Ethereum as they do now on Bitcoin. But the smart contracts are what gives Ethereum so much popularity in this short time.
In smaller aspects, as Ethereum is newer and therefore has a more modern technology, it surpasses BTC system in some tiny factors:
• Time for transaction confirmation: Bitcoin’s time for confirmation is one of the slowest ones with an average of 10 minutes per transaction while Ethereum works in around 12 seconds thanks to its GHOST protocol.
• Monetary supply: Bitcoin has a quite limited stash that is actually getting to its limits while Ethereum supply is quite greater than BTC’s and is not nearly to its limits, actually it is said that Ether has no total limit and can be created as much of it as necessary, only an annual limit of 18USD million is set.
• The mining reward is quite different too; Bitcoin is quite simpler to mine and has a reward around 12BTC per transaction but it is constantly diminishing with time. On the other hand, Ethereum rewards are lower, only 5ETH per transaction but it seems to be much more stable.
• The cost of transaction: in Bitcoin, every transaction competes equally with each other while in Ethereum, the costing is directly related to the storage needs.
• Turing internal code: unlike Bitcoin, Ethereum counts with its own Turing internal and integral code which gives the possibility to perform any calculation if we have the time and right equipment. Bitcoin is a little bit more uncertain in this aspect.