Bitcoin VS Ethereum – Who has the upper hand

Bitcoin has been dominating the world of cryptocurrencies for quite some time. But lately it has not been alone, Etherem the world’s second largest cryptocurrency (by market cap) is doing remarkably well this year. Today we are going to compare these two biggest cryptocurrencies and we are going to explain the main differences between them. So let’s get dive right into it.

Functions of Bitcoin and Ethereum – What is their usage

Bitcoin and Ethereum are both based on a distributed blockchain database. Under the name Ethereum stands the whole platform, the currency itself is called Ether, and we have to make difference in between them (unlike with BTC, where it’s the same)

Both currencies Bitcoin and Ether are mined by a network of powerful computers and individual transactions are securely encrypted. Bitcoin has, however, only one function which is to work as a currency. Ethereum, on the other hand, has far more extensive use than just being a currency.

Ethereum has its own programming language which makes it suitable for creating applications (also known as dapps – decentralized applications). One of the most popular applications built on Ethereum is currently Slock.it. A platform for sharing, selling and renting basically anything.

Advantages of Ethereum – Endless number of possibilities

With Ethereum developers have simply new possibilities to what kind of applications they can create, the only limitation is their own mind. Can you imagine an application that would for example automatically rewarded you for life with a low environmental footprint? Even in such directions could the future in this technology lead.

Another major advantage is an advanced protection against fraud and third-party interference. Transaction speed and zero censorship due to the absence of central authority. Hand in hand with the above-mentioned benefits is the use of Ether (virtual currency) that is already running on the Ethereum platform.

Advantages of Bitcoin – I was here first!

Bitcoin has a great advantage that it is the world’s first cryptocurrency. Recognized as such, BTC is very often accepted as a regular payment for services and goods. And the more companies accept it and use it on a regular basis the more the value of Bitcoin can raise.

The main driver of Bitcoin frantic growth is currently Japan. Bitcoin became in Japan perceived as a legal method of payment on April 1, 2017. Almost half of all trades come from here! From 1st of July 2017 was also Bitcoin recognized in Australia as a standard payment method which will no longer be subjected to double taxation (to which it used to be). All of this kind of attention around BTC greatly boost the price.

Where will the price stop? How are Ethereum and BTC doing this year

In terms of value, Ethereum experiences golden times. Bitcoin is doing this year also remarkably well, but it „only“ tripled its value. Ethereum shows a growth of 3 600% in comparison to the beginning of the year and it literally surfs on the golden fever experienced by almost all cryptocurrencies. Price of one Ethereum coin is currently (August 2017) approximately 320 USD. In the start of the year, the price was, however only 9 USD.

What did drive Ethereum price so high?

Ethereum price skyrocketed a little after several companies have expressed their support for this project. Apart from gigantic technological companies like Microsoft and Intel, were also banks – JPMorgan, UBS, National Bank of Canada and insurance company ING. The Enterprise Ethereum Alliance (EEA) was joined by 86 companies

Why do banks use cryptocurrencies?

Digital currencies are becoming more popular than ever, that is also caused by the time in which we live, where hackers around the world can drain millions of dollars from banks. Fintech companies and banks know this, that is why they are excited from the blockchain technology. It allows them more than to just send money from one client to another, but to process any messages or transactions in a safe and fast manner.

Conclusion – So who really does have the upper hand?

Both cryptocurrencies are unique. BitCoin has been around for almost a decade and we can thank it for shaping the cryptocurrency world as we know it today. Ethereum, on the other hand, have a huge space for expansion with decentralized applications that could greatly impact not only Fintech and technological industry but also our daily life. That is why I think that Ethereum has currently the upper hand. As you already discover from the paragraph above, its price rose by 3 600% this year it is not even over yet. There are no real conditions for investing in Ethereum or BTC, as anyone who has got 10 $ can do it. But beware that the cryptocurrency market is very volatile and it can suddenly change in a single day even by a dozen of a percent!

Which cryptocurrency do you think that has the upper hand? Do you agree with our conclusions about Ethereum? Share your opinions with us in the comments below.