If you are brand new to the world of crypto and are wondering where to invest your money and you are torn between Bitcoin and Ethereum, look no further. First, before establishing where to invest, it is important to understand what they are, the differences between the two, and the pros and cons of each.
What is Bitcoin?
Bitcoin (BTC) is best described as ‘digital gold’ in the way that it is suitable for collecting and exchanging and used for buying things online without the interference of third parties. It isn’t the first time someone has executed this idea, however, it is the first time it has been deemed successful. Originally launched in 2009 by an anonymous individual or group under the alias ‘Satoshi Nakamoto’. It has since become the most popular cryptocurrency in the world and has encouraged an influx of cryptocurrencies since its launch.
What is Ethereum?
Ethereum (ETH) was originally created as a direct response to Bitcoin, enhancing and highlighting what the coin was missing. Ethereum is powered by the Ether token and runs as a decentralized blockchain network, which in essence means that it is near impossible to hack into or change the information once it is released into a blockchain. Ethereum is often used for the functionality of NFTs, or Non-Fungible Tokens used to represent ownership of digital assets. This can vary from digital art, music, videos and so much more.
The Comparison Between Bitcoin and Ethereum
The difference between the two basically comes down to the function of Bitcoin: the main purpose is to be able to exchange currency and purchase items. Bitcoin will be and is accepted as an alternative form of currency from say the Great British Pound (GBP). Various websites such as Shopify, Express VPN, and Paypal in the US accept Bitcoin as a payment method. However the same cannot be said for Ethereum, as its primary usage is for the creation of secured digital technology such as NFT art and others. Although Ethereum can be used to pay for services, that is more of a secondary usage for the platform.
On the other hand, Bitcoin and Ethereum do share some similarities, being that they are the top two most popular cryptocurrencies on the market at the moment. They both see a large volume of trading transactions on a daily basis, much more than any other currency. Both of them being decentralized also means that outside sources such as the Federal Reserve System or the government cannot keep track of transactions. So it is often found that those who use Bitcoin to make alternative means of payment can do so in confidence.
All in all, whether you invest in Bitcoin or Ethereum depends on what you intend to use them for. For regular currency exchange purposes and buying online, it seems that Bitcoin is the best investment. Alternatively, for a deep dive into the world of NFT and other digital assets, Ethereum may be the way to go.
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