Bitcoin and Ethereum: What do you need to know before investing in it?

Whenever one talks about cryptocurrency, most of the people end up talking about bitcoin and Ethereum. This is primarily because bitcoin was the first cryptocurrency that was introduced, and Ethereum followed suit.

In terms of market capitalization as well, both these cryptocurrencies carry a higher value. Moreover, it area finds multiple applications like the development of smart contracts and decentralized application development, and it is also powered by either, which is cryptocurrency.

All this makes both these cryptocurrencies a lucrative investment. As a wise investor, you must know about the key features of both this cryptocurrency and the differentiating factors before putting your money in it. In this blog, we are going to highlight both these aspects that will eventually help you narrow down your decision to the best one. know more about Bitcoin 360 AI iFlex by clicking here. 

Key features of Bitcoin

Decentralized: 

Secure: Bitcoin operates on a proof of work consensus mechanism, which makes the transaction validated by every minor, thus making the system safer. These minors have to solve complex mathematical problems, which is a challenging task that only a miner can do.

Transparent: Another notable feature of bitcoin is that these transactions are transparent. 

Limited supply: As we all know, there is a limited number of cryptocurrencies in the market, and the same holds true for bitcoin. There are only 21 million of bitcoins available in the market. Already more than 19 million bitcoins are in circulation in the market. Satoshi Nakamoto has hold of one million among all these. 

Fast: Bitcoin transactions are generally fast, with most being confirmed within a few hours. This makes Bitcoin transactions faster, thus adding up to its popularity.

Key features of Ethereum

Smart contracts: Ethereum powers the development of decentralized applications on smart contract development. These are preprogrammed contracts that are self-executable once thecondition of the agreement is met.

Turing-complete: Solidity, a programming language that powers Ethereum, is Turing-complete. It means it offers a wide range of applications which adds versatility to with area. However, bitcoin is a bit different from that of Ethereum in this term. 

Fast: The transactions are faster and take less than a minute.

DApps: 

How Ethereum is different from Bitcoin

As we have mentioned, the key features of both these cryptocurrencies are kind of similar; there are certain similarities between the two, like both decentralized are open source Blockchain platforms. However, when it comes to differences, these are some of the notable ones:

Purpose of each platform- when you start making comparisons between bitcoin and Ethereum based on their platform then bitcoin was designed only for the payment system. It works as a peer-to-peer electronic cash mechanism. However, when you talk about it idiom, its objective was not merely limited to the transaction. Rather, it also triggered the centralized application development, smart contract development and also power is not fungible tokens. Thus it has a multitude of roles to play. Hence from an investment perspective, Ethereum takes the lead on this point.

Programming language–  The programming languages utilized by Bitcoin and Ethereum are distinct in nature. Bitcoin makes use of a basic, stack-based programming language, while Ethereum is powered by a more robust programming language referred to as Solidity. Solidity is specially designed for building smart contracts and decentralized applications and it is a more complex language than the one utilized by Bitcoin that is specifically designed for the more straightforward function of executing transactions on the blockchain. The difference in the programming languages used by these two platforms reflects the different capabilities and use cases for which they were designed.

Growing use- another line of the difference comes with its usage. While bitcoin is solely dedicated to payment, Ethereum has a robust development community and ecosystem, which do not have a number of developers.

Overall, while Bitcoin and Ethereum have some similarities, they are intended for different use cases and have different capabilities.

Wrapping it up!!!

Was a brief discussion on Ethereum and bitcoin. Although you may find the line of difference between these two cryptocurrencies but the bottom line is that investment in these cryptocurrencies will give you profitable returns. However you should be looking at them from a long-term investment perspective. You can click on to start your investment.