Bitcoin and Ethereum are the best cryptocurrencies leading the market. They’ve both proven that coins can be helpful in real-life situations and that blockchains are much more than a place for mining. And as both assets have become more powerful, they have an infinite battle. Although both can be used to trade, buy or sell coins, they provide different advantages. However, in some cases, one is better than the other. Of course, their benefits can be less or more important depending on what you intend to use the cryptocurrency for.
For example, if you want to buy Bitcoin on Binance, you might find the price to be similar to Ethereum. But Bitcoin transaction fees might be lower, which benefits investors and builds reliable portfolios. Ethereum always had pricier fees and gas expenses but is currently working to improve on these aspects through upcoming updates. On the other hand, Ethereum provides more than a digital financial asset compared to Bitcoin, such as DApps, DAOs and much more.
Let’s find out if Bitcoin is better than Ethereum and which one you should choose to invest in.
On Bitcoin’s features
Bitcoin has the supreme advantage of being the first cryptocurrency to exist. Released in 2009, Bitcoin was one of the most discussed subjects around that time, although its popularity surged later. Since it was something new and few people were trying to understand and use it, bitcoin was most prone to negative media coverage, including the investors praising it. Nowadays, this still hasn’t changed much, but Bitcoin’s network has increased, and more people are investing in or valuing bitcoins.
Bitcoin became a stable asset due to its stability over time. Besides the fact it has its peaks and lowest times, it’s one of the best assets to have for a reliable crypto portfolio. It’s also steady since blockchain and cryptographic keys protect the network against possible counterfeits.
However, some disadvantages of Bitcoin include the following:
- Since federal or government programs do not insure Bitcoin, if people lose their coins, there’s no way to get them back;
- Bitcoin transactions are done digitally and anonymously, which increases the chances of people’s data getting hacked;
- Bitcoin may be prone to regulatory restrictions as it has been used for black market transactions. China, for example, has completely banned it;
If you want to invest in Bitcoin, here are the advantages:
- It’s widely accessible so that you can buy or sell it easily;
- It’s decentralized, meaning you won’t need a centralized entity to manage your transactions;
- It provides high long-term results, much more compared to Nasdaq 100;
- Transactions are instant, regardless of the number of coins;
- Bitcoin is a store of value, which is its most significant benefit;
On Ethereum’s features
Ethereum was released in 2015, a few years after Bitcoin. Although it stayed in the shadows for some time, people recognized its value due to its multiple benefits. Ethereum’s creator imagined a cryptocurrency similar to bitcoin when it comes to transactions but with something different on its blockchain. Therefore, smart contracts were included in Ethereum’s usual transactions and actions, which is what the blockchain is known for.
However, Ethereum might be a risky investment to make. The cryptocurrency is highly volatile, and despite people’s efforts to bring it back on track, some are turning to other similar cryptocurrencies, such as Dash 2 Trade or RobotEra.
Ethereum has the following drawbacks:
- To program something on the blockchain, you need to learn its language, Solidity, which is a complex programming language;
- Ethereum had always scaling issues as the network’s capacity increased in a short time, which is why more upgrades are coming on the way;
- Ethereum investing can be risky, and given the high fees, it might not be worth investing if you’re not ready to lose some money;
But if you want to invest in Ethereum, here’s why you should do it:
- For businesses, you can join private partnerships with private transaction layers to protect data;
- You can tokenize almost anything on Ethereum, such as real estate;
- Ethereum’s ecosystem encourages developers to codebase;
- Ethereum’s open-source protocol allows anyone to build public or private networks;
- Ethereum’s rapid deployment enables organizations to create and administer private blockchain networks;
What makes Ethereum special
If you’re more than a regular investor, you may want to choose to work on Ethereum. Through the use of its smart contracts, you can program almost anything you’ve ever dreamt of on the blockchain. Ethereum’s community welcomes anyone who wants to create, which is why you’ll find plenty of resources and tools on the blockchain to help you achieve your goal.
Some other interesting use cases of Ethereum include some of the following:
- Decentralized finance (DeFi) through which users fully control their money and escape the limitations of traditional finance, such as trading hours and centralization;
- NFTs offer digital value to any asset and can be sold or bought. You can even create your own collection of NFTs on Ethereum and sell it at an art auction;
- Decentralized autonomous organizations (DAOs) are organizations owned by members who can vote transparently;
Bitcoin and Ethereum similarities
Although different, Bitcoin and Ethereum are similar in certain aspects. For example, they’re both decentralized in nature, so they can’t be controlled, managed or regulated by government regulations or other official authorities. Unfortunately, regulation might be necessary for worldwide crypto adoption as crypto is taxable. At the same time, both cryptocurrencies can be stored in wallets and traded on exchanges. Both use alphanumeric numbers for users to leverage accounts; they’re also called private keys that hold the cryptographically-generated accounts of a user. Public keys also are used to encrypt sensitive data, which is necessary for a cryptocurrency’s safety and security.
Comparing Bitcoin to Ethereum is challenging. Although both have similarities, and they’re the first cryptocurrencies that shaped today’s crypto market, they’ve grown to provide different features. So, choose Bitcoin if you want to leverage a store of value, but Ethereum is best for building apps and making a profit from NFTs.