It’s only natural for people to compare Eth and Bitcoin since these two currencies are the most popular at the moment. Eth (digital token of the Ethereum blockchain) is the second popular currency after Bitcoin (digital token of Bitcoin blockchain). A lot of people compare these two currencies and wonder which one is a better investment.
Experts claim that these two currencies are too different to compare. Yes, BTC and ETH are the most popular currencies, and they are considered to be digital money. But they are very different. So what are the differences between these two cryptocurrencies?
People prefer investing in BTC since it has the biggest name in the crypto world. It’s the first digital currency to be created, it has the highest price. Experts predict that if one-day payment systems will start accepting cryptocurrencies as a way of payment, then certainly BTC will be the first one accepted.
Bitcoin is considered to be a currency that you can use to pay for certain services or products. Yes, you still can’t go to a local store and purchase apples or bread. But Bitcoin blockchain is mainly used to host some financial operations. It is considered and used as a decentralized payment network.
Bitcoin blockchain was the very first successful attempt to launch a decentralized system that people could use as a decentralized payment network. But Ethereum was the first blockchain that offered to use this decentralized system for storing computer code that may be utilized to enable tamper-proof decentralized financial contracts or even applications.
Ethereum and its digital token ETH are not considered only as an investment in a cryptocurrency. The blockchain offers some other interesting options. The system is used by developers to create and run applications within the blockchain. ETH is used by these developers to run and create these applications.
So, there are two main purposes to use ETH:
- To invest in, trade, buy, etc.
- To run applications within the blockchain.
Ethereum blockchain can even be used to create other cryptocurrencies that run on top of the main blockchain.
Ethereum or Bitcoin?
Even though technically these two types of cryptocurrencies are competitors, it’s difficult to say which one is a better investment. Yes, most experts predict that in the future, we will be using cryptocurrencies as traditional fiat money. Bitcoin will most likely be one of the first currencies used by people to buy services and products.
But at the same time, you can’t say that about Ethereum. You can invest in ETH just like in any other cryptocurrency. You can buy certain things or services by using ETH, just like in the case of BTC. But when it comes to Ethereum, it has other purposes. It allows users to develop applications with the help of the blockchain.
Bitcoin is one of the most invested cryptocurrencies in the world, so it would be a good idea to invest in Bitcoin. It has the most attention from big investors and its price is relatively stable.
Ethereum, on the other hand, has a different goal and approach to mining blocks. Plus, it allows developers to create applications and for that, they need ETH. This means that Ethereum is also a good investment since the Ethereum platform is extremely popular among developers.
If you want to invest in cryptocurrency, it is only natural to try to figure out which one is better. But when it comes to comparing Ethereum and Bitcoin, it’s a bit difficult to say which one is better since they have different roles. Both are relatively reliable and could be considered good investments.