Bitcoin vs Ethereum - which is better?

Bitcoin vs Ethereum, or what is the fundamental difference between the two most popular cryptocurrencies? Which of them is more promising? Why Bitcoin and why Ethereum? We will try to answer these basic questions, also considering what lies ahead for them. And why do we like Ethereum more :-).

Be sure to read: Brokers offering Bitcoin - Summary

Bitcoin vs. Ethereum

BITCOIN

BTC is independent network of online payments and cryptocurrencywhich appeared in 2009. This cryptocurrency has been built from the very beginning as an independent, non-influencing and decentralized virtual currency. He cares for the infrastructure of the network Bitcoin Foundationhowever, all decisions are made by a democratic majority.

The total amount of Bitcoins is known previously. 2140 Bitcoins will be mined to 21.000.000.

Bitcoin mining is gradually slowing down. Currently, around the world, 70 Bitcoins are "mined" per hour. Own "mining" of Bitcoins is performed using special computing devices with high computing power that confirm transactions in the bitcoin network. Currently, the vast majority of miners are concentrated in Asia, mainly due to lower electricity costs. Ordinary, small Bitcoin miners are withdrawing completely from this activity. The issue of confirming transactions is more complicated and irrelevant to our needs.

Bitcoin price

The value of Bitcoin in 2017 exceeded all records. Gradually, in March, the limit of $ 1000 for 1 Bitcoin was surpassed, and the growth has hardly stopped since then. Recently, the price of one Bitcoin broke the $ 7900 mark. For Bitcoin, 2017 is truly a "hassle-free" year.

According to financial experts, the rise of Bitcoin is primarily due to the interest of Japanese investors and the increasing public awareness of this cryptocurrency. The Bitcoin phenomenon is absolutely fantastic. Its existence has made its way into the consciousness and is now almost synonymous with the word by the secular audience "Cryptocurrency". Only the future will show us whether it is this boundless confidence in its constant growth and the certain privileged position of Bitcoin from the long-term perspective will not be its swan song.

This year, Bitcoin is a golden egg for investors. So far, there does not appear to be an increase in this waluty would stop or slow down. Time will tell.

The second best-known cryptocurrency when it comes to its spread is Ethereum, which is not just an "ordinary" cryptocurrency, trying to be something more. I must admit that Ethereum is more promising, and we believe that its potential in the future will be much larger than Bitcoin. Why? Below are a few facts.

ETHEREUM

Bitcoin vs. Ethereum

The author of Ethereum, unlike the creator of BTC, is known to the world. It's about a boy named Vitalik Buterin, A Russian with a Canadian passport, launched by the network of this cryptocurrency in mid-2015. Its development is therefore centrally managed, with a clearly defined structure and plan. This is one of the advantages over Bitcoin.

Ethereum is based on Technology blockchain (a special type of decentralized database storing information that is protected against unauthorized interference from outside). At the same time Ethereum is a decentralized virtual machine for the so-called "Smart contracts" (smart contracts).

Blockchain in Ethereum

This network actually creates one big world supercomputer. The latter consists of thousands of smaller and larger miners who, using specially modified computers equipped with powerful graphics cards of high performance, create this supercomputer. These computers have a name Rigy. Anyone can build it, so you can become too "Extractor" Ethereum.

The potential for such a worldwide supercomputer is tremendously large. Imagine being able to create your own cryptocurrency with a few lines of code that can be instantly run and run on the Ethereum blockchain. Blockchain is also useful for future banking, for insurance, for records of any fraudulent transactions, or for recording the state's business activities, for example (Dubai wants to fully switch to blockchain technology in terms of commercial activities by 2020). And that's another reason why Ethereum fits the position "Other great things on the internet".

A big advantage for Ethereum is the foundation Ethereum Foundation. Its members include dozens of the largest IT companies (eg Google, Microsoft, etc.). The mission of the Ethereum Foundation is to promote and support research. It is also the development of the Ethereum platform, which brings the world decentralized protocols and tools enabling developers to create next-generation decentralized applications (dapps), creating together a free, more accessible and reliable internet. Note the connection "decentralized applications". This combination is beyond the scope of this article and could spread the fame of the entire Ethereum network by making this cryptocurrency a global supercomputer.

The Ethereum value is not only thanks Ethereum Foundation, but mainly thanks to the work and investments of smaller miners this year is definitely growing.

Author: Michal Kuchař