Blockchain is the future of credit. The number of cryptocurrencies available on the internet is over 900 and constantly growing as a new one can be created anytime. Bitcoin is a type of cryptocurrency that has been active since 2009 while the ethereum came into existence 2015. By market capitalization, bitcoin is the currently the largest blockchain network selling at about $4300 followed by ethereum which sells at over $300.
The difference between Bitcoin and Ethereum
Whilst Bitcoin was released and early miners own most of the coins that will ever be mined, Ethereum was crowd funded. With Ethereum 50% of the coins will be owned by miners in year five. Similarly the cryptocurrency has a slightly different economic model than Bitcoin – its block rewards halve every 4 years until the year 2140 allowing for a multiplier effect growth whilst Ethereum releases the same amount of Ether each year ad infinitum.
Impressively in the year 2017, the value of the cryptocurrency more than doubled from its value the previous year and it is more flexible than Bitcoin as it has its own turing complete internal code. A turing-complete code means that given enough computing power and enough time anything can be calculated. The cryptocurrency has less transaction fees which make it a better currency option long-term. The Bitcoin may settle as digital gold bars while the Ethereum may be the everyday currency for online transactions. It is also used in the banking sector using smart contracts.
The pricing difference makes one wonder if the cryptocurrency will ever get to the price of the bitcoin. The Bitcoin is more widely accepted by investors and Merchants. Although the cryptocurrency is more flexible than the Bitcoin, the Bitcoin has a wider reach and acceptability among cryptocurrency users and its potential to serve as a medium of savings will continue to drive the cost up.
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