Bitcoin and Ethereum are two of the most popular cryptocurrencies on the market today. This post will explore how they work, who created them, and what each offers to consumers. We'll also touch on some of the advantages and disadvantages of using these currencies in daily life.
Bitcoin:
Bitcoin is a decentralized, peer-to-peer digital currency that has no physical form or intrinsic value. The goal for this design was to create a way for people who don't know each other to trust one another without using intermediaries such as banks (which charge high fees).
Pros:
When sending bitcoins, there are no transaction fees, so the cryptocurrency is often used to complete international money transfers.
You can easily store or hold your coins in any digital wallet of your own choice.
The supply of bitcoin is limited - only 21 million coins will ever exist - which means it could potentially increase in value if demand continues to grow over time (and people don't lose their wallets with all their Bitcoins). Disadvantages of Bitcoin: The blockchain behind the technology has been known for its incredible energy consumption and slow processing speeds. This makes it difficult for consumers that want fast transactions times with low fees.
Cons:
The blockchain behind the technology has been known for its incredible energy consumption and slow processing speeds. This makes it difficult for consumers that want fast transactions times with low fees.
Some people argue cryptocurrencies should not be used as a store of value since they are too volatile to guarantee their long-term worth compared to more traditional currencies like gold or U.S Dollars.
Bitcoin Cash was founded in 2017 when a segment of the Bitcoin world got dissatisfied with high processing fees and saw the need for the latest iteration of bitcoin that handled these issues while retaining all other qualities such as confidentiality and data integrity. However, since this split happened so recently, there is still some confusion around Bcash: whether it's just another coin on par with BTC (like Litecoin) or an entirely different cryptocurrency altogether (like Ethereum).
Ethereum:
Ethereum is a decentralized framework that executes blockchain networks, which are apps that function precisely as planned with no interruption, censoring, deception, or 3rd interaction. These apps can be built by anyone and help to govern everything from exchange trading to voting systems, inventory management, and the sharing economy (such as Uber or Airbnb).
Since its release in 2015, Ethereum has become the second-largest cryptocurrency by market cap. Unlike Bitcoin or other cryptocurrencies that are created to function as a store of value, Ether was built with additional features such as smart contracts and decentralized apps (or apps) that help developers automate their software.
Pros:
The platform operates on an open-source network, meaning no third parties can charge fees for transactions.
Many apps have been created using this technology, including CryptoKitties - one of the first blockchain games where users could breed virtual cats. Although slow speeds made playing difficult at times, these problems were fixed after implementing off-chain solutions so more transactions could be processed at once.
Cons:
Like Bitcoin, Ethereum is a public platform that utilizes blockchain technology. Unfortunately, this means it has the same scaling issues as BTC - making transactions slow and costly at times.
Ethereum also runs on its programming language, Solidity, which developers must learn to create apps or intelligent contracts. It's not an easy language for beginners, so this could be another barrier stopping some people from adopting cryptocurrency as their method of choice for transacting value online.
Bitcoin or Ethereum: Which is best?
This is ultimately a matter of opinion, and the answer will depend on what you want to use cryptocurrency for. If you're seeking a viable means of exchange with rapid, affordable exchanges that can be used as everyday money, Bitcoin could be for you. On the other hand, some people argue cryptocurrencies should not be used as a store of value since they are too volatile to guarantee their long-term worth compared to more traditional currencies like gold or U.S Dollars.