About 46 million people in the United States own Bitcoin.
If you’re interested in purchasing Bitcoin, you may also be considering Ethereum. There are many differences between the two coins, but there are pros and cons to each.
Keep reading to discover whether you should decide to buy Bitcoin vs Ethereum.
What Is Bitcoin?
Bitcoin is one of the most popular types of cryptocurrency, and most people have heard of it. It’s one of the most valuable digital cryptocurrencies that you can find on the market.
It launched in 2009, and it operates on a peer-to-peer network. Big investors focus on this platform, but the SEC is also mostly focusing on it. Bitcoin was the first cryptocurrency that offered future contracts in 2017.
Even everyday consumers are able to buy portions of cryptocurrency. It’s becoming so popular that there are now even ATMs where people can purchase Bitcoin.
What Is Ethereum?
Ethereum runs on its own blockchain and network. Which means that it’s versatile and decentralized. It’s a little bit younger than Bitcoin, only being launched in 2015.
It allows for smart contracts as well, so when you purchase it, then you’ll have safe financial transactions. The Ethereum network is also great for trading and buying tokens and NFTs.
There are also decentralized apps that can run on the blockchain as well. The supply of Ethereum is also not restricted.
This is one major difference between Ethereum and Bitcoin.
There are many other differences between the two that are important. It can be challenging to pick between the two of them, but there are many pros and cons to both.
Bitcoin is regulated, and this can provide some security when there is so much uncertainty about how it will be regulated in the future.
Bitcoin is much more established and might be able to weather any storm that could happen with cryptocurrency. Ethereum is still new, but it is also the second most-established cryptocurrency.
You can’t really go wrong with either cryptocurrency. Both of them are sustainable, have mature ecosystems, and have good market liquidity.
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The market capitalization is the total value of the asset. With cryptocurrency, you’ll get that number by calculating the number of coins by the market price of each coin.
Bitcoin has more than double Ethereum’s market cap. This means that Bitcoin is more established and has a higher value as an asset. In fact, Bitcoin takes up almost half of the market share.
This means that more people trust it, and this trust leads to less volatility. There would need to be more money to make the price of Bitcoin drop drastically.
Bitcoin also has a stronger track record with its decentralization and purchasing security. The blockchain is more secure, and there are thousands of minders around the world to ensure that each transaction is safe.
This security makes it less likely to experience a successful hack than something like Ethereum would. Ethereum has had a few security incidents in the past, but they are ramping up security measures.
Bitcoin has a decentralized network, which also means that it doesn’t have the same centralization as Ethereum. This means that it hasn’t been criticized as much.
Bitcoin has been operating securely for a decade, and its technology works. Ethereum has improved its security, but in terms of reliability and security, Bitcoin’s platform is the winner.
Another important difference between Ethereum and Bitcoin is their supply. Bitcoin is capped at 21 million coins. That means that there will never be more than 21 million coins in circulation.
Ethereum has no limit, so they can create more coins. While inflation hasn’t been a problem with Ethereum, that is one consideration for the future. They do have a process to burn the coins and reduce circulation, but it could reach levels of inflation and decrease the value of the coins.
However, as Bitcoin goes on and there are only a few coins left available for purchase, the price of the coin can go up as it becomes rarer.
Which One Is the Best Option?
Investing in Bitcoin or Ethereum can be an expensive investment, so it’s always best to talk with your financial advisor first. Both cryptocurrencies are still in a new market, and because of that, they are very volatile.
You’ll need to decide what risk level you’re willing to take on. Investing in Ethereum can be the most risky option, but if you time it correctly, it could be lucrative as well.
Ethereum is a building block and as an investor, this can provide big gains. There is also the option to choose splits on Ethereum.
At the end of the day, the decision of whether to buy Bitcoin or buy Ethereum will depend on the state of the crypto market, your own risk level comfortability, and your investment goals.
You’ll need to do some analysis and research on the market. If you’re still confused, you can also always reach out to a financial advisor as well.
Discover More About Bitcoin vs Ethereum
These are only a few of the differences between Bitcoin vs Ethereum, but there are many more that you can consider.
It can be challenging to stay up on the latest news in cryptocurrency, but we’re here to help you out.
Make sure that you check out our website and learn about the latest trends in cryptocurrency.