Home Cryptocurrency What Is The Difference Between Ethereum And Bitcoin? – 2021 Guide

What Is The Difference Between Ethereum And Bitcoin? – 2021 Guide

by Tracy Finke

The market of virtual assets is getting more popular in recent years. One of the main reasons for that is related to frequent changes in prices that can be seen every day. Therefore, investors find it as a great potential to make a profit. You can choose different methods of trading. The easiest one is to simply buy some digital units and wait for a higher price to sell.

On the other hand, day traders can earn even more by investing at the right moment. However, that can be very complicated. Various factors are influencing the frequent changes of values.

There are over 2,000 different coins and tokens available on the market today. The most popular two are Bitcoin and Ethereum. Bitcoin represents a leader in this market and the first crypto ever created. When it comes to Ethereum, it was made a couple of years after BTC. The current price of Bitcoin is around $32,000. The price of ETH is $1,750. However, there were some crucial changes in this market in recent years, especially after the year 2015, when Bitcoin started to grow and influence the rise in popularity of other cryptocurrencies as well.

When it comes to trading with Bitcoin, you can find many online platforms where you can buy and sell this digital unit. One of the most popular platforms is Bitcoin Evolution, and you can click here to read more about this website. There are platforms where you can trade with Ethereum as well, and one of the best platforms is Ethereum Code, and you can learn more about it if you read this review.

Before you start investing in any of these options you should learn more about the technical features, along with the factors that can influence the market. While it is common that the same factors affect the whole market and price movements, that is not always the case. Therefore, the first thing is to learn the difference between various options. Here are the main features and differences between Bitcoin and Ethereum.

Bitcoin

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As we already mentioned, this digital unit represents the leader in this market and the first virtual currency that started using blockchain technology. It was introduced in 2009. The main goal of cryptocurrencies is that they can be a great way to protect assets in case of an economic crisis. That is another reason for such a rise in popularity during 2020. There is a great chance that the world will face another recession caused by the lockdown measures due to pandemics. When it comes to price movements, you could buy it for less than $1,000 before 2015. After that, it started to gain more value. The first record-breaking price was in 2017 when it reached near $20,000.

However, the misbalance of demand and supply lead the value to drop significantly in the years after. The minimum was in 2020, with a price of under $5,000. Moreover, the value started to rise again because people became more interested in alternative ways to protect their funds and gain profit. In the first quarter of 2021, different factors influenced the value of BTC to set a new record with a price of over $60,000. We can notice that people with a big influence in the tech industry can also affect this market. The best example is Elon Musk and his actions, which first affected the huge increase in value, and then the drop.

Ethereum

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This is another very popular option that is following Bitcoin and the second most valuable virtual currency. The interesting fact is that there is a potential for ETH to become the most expensive digital asset in the future. Some of the biggest corporations in the world, such as JP Morgan, Microsoft, and many others already accepted it. It is also a decentralized system as Bitcoin, and you can use it for creating advanced online platforms, improved supply management, smart contracts, and much more.

The main advantage is the introduction of smart contracts backed up by the Ethereum blockchain. Also, you can create apps that operate on decentralized system. Another benefit is that you can avoid the involvement of third parties when creating collaborations and contracts with other companies and partners. Also, the apps made on this system are much more secure, and there is no way for anyone to intercept the data shared over them.

What Are the Differences?

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First of all, there is a lot in common when we compare these virtual assets, like the fact that they are both using a blockchain system and that they are decentralized. On the other side, it is important to know that some differences could affect their potential in the future. When it comes to coding, the difference is that that Ether is using editable codes, while there is no way to edit them on the BTC blockchain. Moreover, the mining process is much faster when it comes to ETH.

Furthermore, the main difference is that the goal of Bitcoin is to replace current fiat currencies, while Ether is more complex, and it can be integrated into businesses, online platforms, marketing tools, and more.

Moreover, it will become more notable that there are different uses of these cryptocurrencies. On the other hand, we think that Ether will continue to follow the value of Bitcoin and be the first follower when compared to other digital currencies.

Still, its technical features could affect an even higher price in the future.

Last Words

As you can see, there are many similarities and differences when it comes to these two options. When it comes to trading, the best choice would be to invest in both of them since they have a great chance to keep growing. According to some predictions, the price of BTC might hit $100,000 in the next few years, while there are positive claims for Ethereum as well.

The most important about trading is to select the right factor and keep in mind that various factors could influence the frequent price-changes.