Good day to all. Not so long ago I wrote about the cryptocurrency Ethereum, where I tried to tell you in simple language about this cryptocurrency.
Do you have any questions? Write them to me, and I will explain them to you as much as possible.
So, in this article I was given a promise to compare Bitcoin and Ethereum, to find out what is better and what will last longer. I always keep my promises, so buy popcorn and read it!
What, then, are the similarities and differences between the two, at the moment, the most famous coins in cryptography, which managed to blow up the cryptocurrency market with its enormous growth?
So, let’s start with the equality of two cryptocurrencies. It is complicated to talk about the similarities between Bitcoin and Ethereum, because they have entirely different goals in cryptography, but they still have similarities. This is an open-source platform consisting of:
- Decentralized confirmation mechanism;
- PoW mining.
And I also want to note that soon one of these qualities, between the two crypto-currencies, will become smaller. So, for example, PoW Mining (mining with equipment, due to the power of your PC) will switch to PoS (Proof of Stake) mining. For instance, if you have a certain number of coins stored in your wallet, you receive additional coins for its storage.
When will the transition be? There is no exact answer to this question, there are only assumptions, and they are such, the end of summer-autumn of 2017.
We went to the most critical criterion in comparing these two cryptocurrencies, which, in my opinion, will solve further questions: “what is better?” And “what will be longer to live?”.
I think that you would understand all their difference, we must tell:
- for which these two crypto-currencies were created;
- compare, for ease of understanding, the working processes of Bitcoin and Ethereum with understandable processes from our daily life;
- where and for whom they will be useful.
Let’s start with Bitcoin
It was initially a digital alternative to currencies such as the Dollar, Euro, Pound and so on, the only bitcoin is decentralized, and many other factors distinguish it from public money (and yet I will try to explain in more detail what everyone would understand).
From here we understand that BTC is the same money only without power, which, like the common currency, allows us to pay for food, a vehicle, clothes, real estate, various services and so on, and nobody even knows it will not be that it was you who did it.
For whom would such a digital currency be useful? It will be helpful for any private person who uses the money. Why? Because Bitcoin is confidential and it is possible to buy everything that you just think of, it’s safe, transferring from one purse to another does not take much time, you choose the commission yourself, you can also store any amount on the bitcoin purse, and no one else’s means will freeze.
Let’s move on to Etherium
It was originally conceived as a platform for the development of decentralized applications, and its block engine was specifically designed to run applications. Applications can be different, ranging from such as VC or Twitter and ending with applications for selling something, concluding contracts or even solving complex scientific problems.
Hence it can be understood that Ethereum is not a currency for buying and selling anything and it can not be called “digital gold.” Then what is Ethereum? Let’s try to compare it with something that everyone understands, namely with the Internet. Crypto-currency Ethereum and the Internet, it seems, are two different things, but in fact, Ethereum is in many respects similar to the usual Internet. Decentralized applications on the platform are sites on the World Wide Web, thanks to which you can also send messages, sell and buy, and so on, and the Ethereum token is an internal currency, like Rubles, Dollars, Euros, etc., with which can only be paid within Ethereum. But the better the platform from the Internet? And the fact that the platform is decentralized, and the Internet is centralized; I consider this quality the most important thing.
For whom will cryptocurrency be useful? It will be helpful to such organizations and specialists:
- modern IT departments;
- progressively configured developers;
- innovative start-ups;
- investors, leaders, businesspeople.
The result is that Ethereum is an infrastructure or a decentralized network, and Bitcoin is a currency.
Thus, we found out that Bitcoin and Ethereum are designed for different areas of activity, and they are the best, at the moment, in its direction. And my opinion is that they will live all the time while there is a cryptocurrency and no one will put forward them from the forefront. Bitcoin is the beginning of the history of digital money in cryptography, it is the foundation for absolutely all cryptocurrencies that already exist, and that will be, but Ethereum gave a new development in the digital world of money!