What’s a great investment right now? Some folks think the S&P 500 is a good place to put your money because it’s in decline. The property market could be about to crash, so that might not be as safe as you think.
But what about crypto?
The next question you need to ask is whether you invest in Bitcoin vs Ethereum-Which Is the Better Buy?
Bitcoin and Ethereum are two of the most popular cryptocurrencies in the world, with each having its advantages and disadvantages.
The biggest difference between them is that Bitcoin has been around longer than Ethereum.
Let’s dive into Bitcoin vs Ethereum-Which Is the Better Buy
Bitcoin (BTC) and Ethereum (ETH) are different cryptocurrencies. While they share some similarities, they both use blockchain technology and have similar fundamental values. They also have many differences.
Bitcoin is a cryptocurrency that uses a decentralized ledger to record transactions. This is without the need for middlemen like banks or governments. It was created by an anonymous programmer, or group of programmers, under the name Satoshi Nakamoto in 2009.
Ethereum is a platform for building decentralized applications on top of its blockchain that runs smart contracts, which are pieces of code that can be executed without third parties once certain conditions have been met.
The platform was created by Vitalik Buterin and launched in 2015 as an alternative to bitcoin due to its more advanced technology and a wider range of capabilities than BTC alone. ETH is more environmentally friendly than Bitcoin thanks to a recent software upgrade.
The second reason to buy bitcoin is that it’s more established than Ethereum in the crypto community. Bitcoin has been around since 2009. This was when Satoshi Nakamoto introduced it as a digital currency that could be used to trade money anonymously and without having to go through any third party like banks or credit card companies.
Since then, bitcoin has grown tremendously, as more people have adopted it as a form of payment and investment. There are currently over 10 million bitcoin wallets in existence (as of this writing) and 30 million using Ethereum wallets meaning millions of people use crypto wallets worldwide!
The acceptance of bitcoin is also growing rapidly thanks to several businesses starting to accept payments using virtual currency such as Dell Computers, Microsoft Xbox Live store, Overstock, and even Subway Sandwich shops in some cities around the US! You can even use bitcoins at popular websites like Wikipedia where you can pay for your monthly donations with them!
In addition, it is widely accepted by merchants around the globe who want their customers to feel comfortable giving them money through different channels including electronic transfers from bank accounts.
There are also a host of bitcoin ATMs all over the world, even in St Petersburg, Florida. You can follow the link for more info here.
Bitcoin offers its users higher stability compared with other cryptocurrencies such as Litecoin. These tend to fluctuate wildly within short periods due largely due volatility.
This is caused by speculation among traders trying to get rich quickly through trading activities. These may not necessarily reflect actual demand for these currencies.
In terms of technology, Ethereum is more advanced than Bitcoin because it has a Turing-complete programming language. This means that blockchain programmers can create smart contracts on the Ethereum platform.
They can then execute commands and make decisions on their own without any outside intervention. By comparison, Bitcoin uses only simple scripts and its scripting language is limited to checking signatures and verifying balances or transactions.
The Ethereum blockchain is a general-purpose blockchain, meaning that it can be used for many different things.
In contrast, the Bitcoin blockchain is specialized to carry out transactions related to financial transactions (such as buying and selling bitcoins).
Both Ethereum and Bitcoin can be bought with fiat currency. However, the process for doing so is different for each coin. For most people, it’s easier to buy bitcoin than Ethereum, especially if you’re new to cryptocurrencies.
You can buy bitcoin with cash at some exchanges like LocalBitcoins and Paxful. You can even deposit cash into an ATM that supports purchasing cryptocurrency.
However, if you want to purchase Ethereum, you’ll need to purchase another cryptocurrency like bitcoin or Litecoin through an exchange such as Coinbase (fees apply) once your funds are in your Coinbase wallet.
Send them from there over to GDAX. They will then be converted into the ether. You can easily do this with their simple interface which makes trading cryptocurrencies very easy!
The final reason why bitcoin is a better buy than Ethereum is that it has a limited supply. In contrast, Ethereum does not. Bitcoins supply is capped at 21 million coins, while Ethereum will have an unlimited supply of over 100 million coins.
The only thing that limits the amount of Ether that users can mine is the rate at which they are willing to purchase and use it as payment. If there were no demand for Ether at all, then miners would stop mining (because they wouldn’t be rewarded).
However, since many people do want to use Ether as a medium of exchange, miners will continue mining. This is even if transaction fees have fallen to zero to ensure that transactions continue being processed smoothly on the blockchain.
Both Bitcoin and Ethereum have similar market caps. However, there are many other cryptocurrencies out there that are cheaper. For example, a project called OmiseGO has a bigger market cap than both Bitcoin and Ethereum at the time of this writing.
In addition to price, it’s also important to look at other factors. This includes trading volume, coin distribution (how many coins exist), consensus mechanism (how transactions are verified), and developer activity when you buy Bitcoin and when you purchase Ethereum.
In their current state, both bitcoin and Ethereum have limitations. This makes them less than ideal for transactions involving micro-payments, financial markets, and smart contracts.
But as more blockchain 2.0 applications are developed, they will find more use cases for their platforms and could eventually coexist as complementary technologies.
The term coin is used to refer to a digital currency that has value in itself, i.e., it can be used as a store of value. It is also called cryptocurrency or digital currency. The best example of a coin is Bitcoin, which is still the most popular cryptocurrency by far.
Other examples include Litecoin and Zcash, both launched in 2011. Dash (Darkcoin) was launched in 2014. Ripple (XRP) was launched in 2012. Monero (XMR) was launched in 2014.
Ethereum (ETH) was created in 2015. But it became popular only after 2016 when it gained value faster than any other asset at the time!
The term token refers to a coin that comes with some kind of utility attached to it as well – like Ether or XRP from Ethereum or Bitcoin Cash from Bitcoin respectively. So you cannot buy tokens with cash but only by buying actual bitcoins/Ethereum first then selling them for whatever token you want!
Bitcoin is the more established of the two, and it has a unique value proposition. It’s also easier than if you want to buy Ethereum. You can do so with just about any fiat currency in the world.
As for its supply, there will only ever be 21 million bitcoins in existence (there are currently 16.8 million), while Ethereum’s supply is unlimited.
In terms of flexibility and ease of use, Ethereum has an advantage over Bitcoin. This is due to its innovative contracts feature, which allows users to automate certain processes on its blockchain network via code or “smart contracts.”
The computational power required for this type of automation makes Ethereum ideal for large-scale applications. These include online games like CryptoKitties that run on its blockchain network.
In the end, Ethereum is a great investment. It could see you make big returns. But if you’re looking for a safe bet and long-term growth potential, then Bitcoin is still the way to go.
Ultimately the choice between Bitcoin vs Ethereum is yours to make. It all depends on your circumstances.
For more on how to purchase bitcoin, be sure to check out the rest of our site.