Bitcoin vs Ethereum
If bitcoin is a calculator then Ethereum is a super computer. They are the most used and famous words in the Blockchain/ cryptocurrency world. But what are these, what’s it use? In this blog, I have explained everything related to bitcoin and Ethereum. Let’s go
What is bitcoin?
Bitcoin is a cryptocurrency which came in existence after 2008 world crisis. It is a new financial currency which is not centralised. Today most of the currency like USD, euro etc are centralised that is controlled by central banks. Bitcoin is a decentralised currency, which means there's no centralised control.
Fast forward Today, bitcoin is used as a legal tender in few countries. It would be safe to say, bitcoin would be a future currency. The bitcoin adoption is gaining momentum. Today many stores are accepting bitcoin as a form of payments.
It's also a store of value, you can assume it to be like a digital gold. Bitcoin will play a major role in web3 ( a more decentralised internet)
What is Ethereum?
Ethereum came into existence back in 2015. It's a platform where you can build decentralised apps( popularly known as dapps). Ether is a token in the Ethereum network. As of 2021, there are many dapps using Ethereum platform.
So how will ether value increase?
It's all computing power. The more the dapps using Ethereum, the higher the ether value. But why would dapps use Ethereum? Right
It's because it's a decentralised platforms. You can build your smart contract which is transparent, decentralised and can be used by anyone around the world. Some famous dapps are compound, aave etc.
Use cases
The use cases of bitcoin and Ethereum are entirely different.
You can use bitcoin as a store of value, as a decentralised currency. Or any such use which can be done by a currency or gold. Infact, bitcoin is a digital gold.
Ethereum use cases are different. As of 2021, DeFi ( decentralised finance) is the most famous dapps using Ethereum. There are also many dapps in different field. Finance is hot as of now. For instance, compound ( a DeFi) has about $11B total value locked as of October, 2021.
Technology
Both bitcoin and Ethereum uses the same backend technology, that's Blockchain. Blockchain is a decentralised ledger, which records transaction in a transparent way.
Future use cases
Right now, we are still in nascent stage. Although the cryptocurrency adoption is gaining great momentum. It's certain according to most researchers that cryptocurrency will have a role to play in many fields like finance, construction, arts, internet and many more.
In terms of future use cases, Ethereum seems more dynamic than bitcoin. And the only reason for this is smart contracts. You can literally build anything via smart contracts. But this kind of thing, is not possible in bitcoin. It would be great to see, the future use cases of both these cryptos. But one thing is certain, Ethereum will find more use cases than bitcoin. Anyway fingers crossed.
Current market cap
Definitely, as of now Bitcoin is the poster fame Holder. As of October, 2021 bitcoin market capitalisation exceeds $1 trillion dollar and ether's around $420 billion. Ether is finally catching up with bitcoin. It won't be a surprise if sometime within few year's, ether surpasses bitcoin market capitalisation.
Final notes-
There's exactly no bitcoin vs Ethereum. Both are different. In fact, one can loosely say Ethereum was built on top of bitcoin. Bitcoin is just a currency. But Ethereum is a platform. You can literally build anything using smart contracts on Ethereum.
