The differences between the two cryptocurrencies are more than similar. In fact, they are linked by the operation on blockchain technology and the fact that Bitcoin was first established in 2009 and thus is the most recognizable, and Ethereum is also one of the earliest cryptocurrencies since it appeared in 2015. In general, Bitcoin can be used for payments and is treated by many as an investment asset or security for difficult times. Its creator is known only from the pseudonym Satoshi Nakamoto, but no one knows who he is and whether he is still alive. The maximum supply of BTC is 21 million pieces, and subsequent Bitcoins are "mined" by "mines" (the so-called proof of work PoW method), i.e. machines with very high computing power that solve certain tasks and in return their owners receive a specific amount BTC. Initially, it was 50 BTC for the so-called block, and currently only 6.25 BTC and in the following years it will decrease even more. Bitcoin is not widely accepted as a means of payment, but there are places in the world where you can pay with it. It is also convenient when we want to send funds, e.g. to a resident of another country, because in this decentralized network, the transaction confirmation usually does not exceed 20 minutes, unlike banks where a foreign transfer takes several days and, in addition, you have to take into account currency conversion. However, the vast majority of users prefer to keep it in the hope of future big sales profits. This is hardly surprising, since Bitcoin has grown from cents to as much as $ 69,000 per BTC in the last 13 years. Ethereum is a decentralized platform that was created by developer Vitalik Buterin, still active in the project. The main goal of Ethereum are not single payments (although they can be made and are sometimes even faster and cheaper than BTC), but smart contracts. They allow various projects to operate, and at the same time protect both parties to such a contract against fraud, because the smart contract will not allow breach of the conditions specified in the contract. Thanks to this, it is possible to collect funds, create tokens and various functionalities. Currently, there are thousands of different projects on the Ethereum network. Meanwhile, nothing can be built on Bitcoin. The supply of ETH was virtually limitless, so this year the team made a shift that made it deflationary. In the future, this should be reflected in its price, as the number of items in circulation will gradually decrease. Also this year, it was decided to depart from the PoW method in favor of PoS, i.e. proof of stake. Thus, ETH can no longer be digged, and transaction confirmations are made by the so-called validators, i.e. people who have frozen their ETH in exchange for profits from transaction fees. The PoS method is also considered to be greener because it does not need machines that use a lot of energy to operate. In that case, which one is better to invest in? It's very hard to say. On the one hand, BTC has remarkable visibility, has resisted various attacks, and the group of people who want to own it is getting bigger, while reducing supply. On the other hand, ETH has many more functionalities, is more universal and plays a specific role in the functioning of other cryptocurrency projects. The developers are still working on developing the platform, and a large community is rooting for them. Will it chase Bitcoin away then? In my opinion, a lot depends on the institutions that invest more and more boldly in this market. If at some point they come to the conclusion that ETH is a better choice and move most of the capital there, then the dethronement will be completely real. So far, big companies and institutions have made shy BTC purchases in the first place, but you can already find those that have invested in ETH. You have to decide for yourself or ... buy and hold both of these cryptocurrencies.
The differences between the two cryptocurrencies are more than similar. In fact, they are linked by the operation on blockchain technology and the fact that Bitcoin was first established in 2009 and thus is the most recognizable, and Ethereum is also one of the earliest cryptocurrencies since it appeared in 2015. In general, Bitcoin can be used for payments and is treated by many as an investment asset or security for difficult times. Its creator is known only from the pseudonym Satoshi Nakamoto, but no one knows who he is and whether he is still alive. The maximum supply of BTC is 21 million pieces, and subsequent Bitcoins are "mined" by "mines" (the so-called proof of work PoW method), i.e. machines with very high computing power that solve certain tasks and in return their owners receive a specific amount BTC. Initially, it was 50 BTC for the so-called block, and currently only 6.25 BTC and in the following years it will decrease even more. Bitcoin is not widely accepted as a means of payment, but there are places in the world where you can pay with it. It is also convenient when we want to send funds, e.g. to a resident of another country, because in this decentralized network, the transaction confirmation usually does not exceed 20 minutes, unlike banks where a foreign transfer takes several days and, in addition, you have to take into account currency conversion. However, the vast majority of users prefer to keep it in the hope of future big sales profits. This is hardly surprising, since Bitcoin has grown from cents to as much as $ 69,000 per BTC in the last 13 years. Ethereum is a decentralized platform that was created by developer Vitalik Buterin, still active in the project. The main goal of Ethereum are not single payments (although they can be made and are sometimes even faster and cheaper than BTC), but smart contracts. They allow various projects to operate, and at the same time protect both parties to such a contract against fraud, because the smart contract will not allow breach of the conditions specified in the contract. Thanks to this, it is possible to collect funds, create tokens and various functionalities. Currently, there are thousands of different projects on the Ethereum network. Meanwhile, nothing can be built on Bitcoin. The supply of ETH was virtually limitless, so this year the team made a shift that made it deflationary. In the future, this should be reflected in its price, as the number of items in circulation will gradually decrease. Also this year, it was decided to depart from the PoW method in favor of PoS, i.e. proof of stake. Thus, ETH can no longer be digged, and transaction confirmations are made by the so-called validators, i.e. people who have frozen their ETH in exchange for profits from transaction fees. The PoS method is also considered to be greener because it does not need machines that use a lot of energy to operate. In that case, which one is better to invest in? It's very hard to say. On the one hand, BTC has remarkable visibility, has resisted various attacks, and the group of people who want to own it is getting bigger, while reducing supply. On the other hand, ETH has many more functionalities, is more universal and plays a specific role in the functioning of other cryptocurrency projects. The developers are still working on developing the platform, and a large community is rooting for them. Will it chase Bitcoin away then? In my opinion, a lot depends on the institutions that invest more and more boldly in this market. If at some point they come to the conclusion that ETH is a better choice and move most of the capital there, then the dethronement will be completely real. So far, big companies and institutions have made shy BTC purchases in the first place, but you can already find those that have invested in ETH. You have to decide for yourself or ... buy and hold both of these cryptocurrencies.