They are all just talking about Bitcoin right now (yes, dear BTC has long since cracked the $ 10,000 mark!), Forgetting that the biggest competitor is close behind.
Well, "tight" would be exaggerated: While 1 Bitcoin today is worth 9,615 euros, an ether costs "only" 402 euros. It is very clear that Bitcoin was first there and the masses since the beginning of this year, immeasurably enthusiastic. Bitcoin is much better known, more widely used and more widely accepted. But Ethereum has also made a phenomenal development and offers some key advantages over Bitcoin. This is often forgotten with all the BTC hype. So let's take a look at what is really behind Ethereum.
These are the differences between Bitcoin and Ethereum
The Bitcoin price has risen by about 1,170% since the beginning of the year - really admirable. But let's have a look at Ethereum: the cryptocurrency invented by Vitalik Buterin was just under 10 euros a year ago and has since climbed by as much as 5,543%. Well, let's imitate one!
While the amount of bitcoins is limited to 21 million (over 16 million BTCs are already in circulation today, much of it is in the hands of early miners), up to 18 million ethers are distributed each year.
In addition, Ethereum arouses great interest among newcomers and micro-investors, to whom the Bitcoin is now simply too expensive. Sure - you can also buy 0.0005 BTC instead of 1 BTC so you do not have to dig that deep, but it just feels better to have a whole coin in your pocket. At Ethereum this is still possible for normal consumers.
In addition, Ethereum is more than just a cryptocurrency. In fact, it's a whole platform, yes, an online community where two parties can sign up for Smart Contracts , paying for Ether in their own designed currency. In contrast to Bitcoin, the Ethereum network is based on a more advanced concept and offers far more functions and advantages for the user. On the platform, so to speak everyone can realize his own idea, develop projects, set up applications and launch programs.
Ether is popular not least because of the increasing popularity of ICO crowdfunding. Many startups offer tokens to investors who can pay for them with ethers. It is not just about the digital currency, but also about membership certificates, virtual shares and other types of assets. In addition to the funds, the StartUps also collect ideas and advice from their supporters.
But let's move on: You've heard of the fun fact that daily Bitcoin transactions consume as much energy as Nigeria? That's no joke - a single transaction takes an average of ten minutes to complete. The underlying accounting power is enormous. By contrast, Ethereum only takes twelve seconds. A decisive advantage that many investors want to savor and therefore switch to Ethereum.
Bitcoin or Ethereum: who wins the fight for supremacy?
Looking at the price, there are absolutely no chances in the near future that Ethereum will beat Bitcoin. There are so many reasons for this. It's hard to be second, especially in terms of mainstream acceptance . People are just getting warm with Bitcoin, so you can not expect them to embrace a second cryptocurrency kid right now. In addition, Ethereum is repeatedly hit by hacker attacks in the headlines, which spoils the cheerfulness a little. There are also frequent hard forks. And if you consider that Ethereum was already over 300 euros in June, but then dropped again and since then only slowly increased, everything does not seem so rosy.
Finally, Ethereum is just as volatile as any other cryptocurrency. Ethereum should not be seen as a pure investment anyway: if you only want to increase your wealth, you should still use Bitcoin. But it is clear that the Ethereum concept is much more advanced and will play a bigger role than Bitcoin in the near or distant future. Ethereum therefore has great potential to replace number one in a few years.