Difference Between Bitcoin vs Ethereum
Both Bitcoin vs Ethereum are different parts of Crypto-currency (also known as virtual/digital currency) and they have their own uniqueness in terms of features. A ‘Crypto’ or ‘virtual’ or ‘digital’ currency is nothing but a digital asset that is used as a medium of exchange in lieu of currency. However, a crypto-currency is not backed up by any Country’s Government. It is extensively used in the transfer of funds, making any transaction between Bitcoin vs Ethereum, etc. The value of each Crypto is denoted in terms of USD and the value becomes very volatile as this Digital currency gets traded every hour and the current Demand & Supply denote the current value (which is not fixed).
Bitcoin is a form of Crypto-currency, which is also not backed up by any Government and it is highly prone to ‘money laundering, ‘tax evasion’ etc. These kinds of payments are only applicable between the Supplier and the Consumer who only takes Bitcoins as payment. The mechanism in which Bitcoin works includes several encrypted hash codes. There is a presence of P to P monitor which verifies the transfers between Bitcoin vs Ethereum. The rate of Bitcoin does not remain fixed for a long time as there are Traders and Speculators who trade frequently and thus the value becomes volatile. For example, if the current price of 1 Bitcoin = USD 100 at a specific time and it is paid to the supplier after a certain time at the day when the Supplier received the bitcoin amount the amount may differ due to higher volatility, suppose the current price changes @ USD 102.5. Thus the supplier became beneficial due to the volatility. However, to determine the fluctuations there are several Algorithm formulae that are needed to compute by the Artificial Intelligence method.
On the other hand, is a platform or an operating system where crypto-currency like Ether is being traded or transferred between Bitcoin vs Ethereum only. In other words, the platform on which the Digital Currency operates and is being traded by the common public. Ether was first invented by Late Vitalik Buterin in 2013 and finally spat into two separate blockchains namely Ethereum and Ethereum Classic (Old Version). The value of Ethereum currency grew 13000% in 2017.
Head to Head Comparison Between Bitcoin vs Ethereum (Infographics)
Below is the top 4 Comparison between Bitcoin vs Ethereum
Key Differences between Bitcoin vs Ethereum
Both Bitcoin vs Ethereum are popular choices in the market; let us discuss some of the major Differences Between Bitcoin vs Ethereum:
- The block time of Etherum is 14 to 15 seconds whereas the block time of Bitcoin is 40% lower (about 10 Seconds).
- Generation of new coins is done by the mining Ether which is usually very consistent, whereas the rate of Bitcoin generally halves in every four years.
- The mechanism of Ethereum is done by an Ethash algorithm which lowers the effect of ASICs mining. The mining of Bitcoin is done by a hash algorithm that produces repeatable but non- reversible string which is completely different from an Ethash algorithm.
- Transaction fees are different in Bitcoin vs Ethereum. When Ether is transacted then the fees are charged upon computational complexities, storage needs, and band with usage. But on the other hand, Bitcoin is fees are charged based upon the transaction size.
- The transaction amount is specified by the Ethereum gas unit which is measured in terms of Gwei whereas the transaction fee is related to satoshis per byte.
Head To Head Comparison Between Bitcoin vs Ethereum
Below is the list of points that describe the comparison between Bitcoin vs Ethereum
| The Basis Of Comparison | Bitcoin | Ethereum |
| Related to | Cryptocurrency | A platform of Crypto-currency like Ether. |
| Meaning | A virtual currency that is not present in any country but can be traded on a common platform and can be used as a medium of exchange by related parties who accept the particular virtual currency. Each of the digital currency holders has its own stored programmed known as a digital wallet. | A common platform where Ether (a digital currency) is being traded is known as Ethereum. Ether acts as a virtual currency and the platform is being controlled by several systematic Algorithm computations. |
| Financial asset | Bitcoin is a financial asset and it has a value of its own. | Ethereum is a platform which constitutes several calculations by which the value of a digital currency can be determined at any point in time. |
| Capital asset | This is not a capital asset as it is used as a medium of exchange. | The platform is a capital asset, as the cost of developing this platform is huge and it helps in the operation of Bit-coin rather than an exchange medium. |
Conclusion
Cryptocurrencies are provided by means of a blockchain that is continuously growing and needs certain modifications at every stage of the process. Both Ethereum and Bitcoin follow a different mechanism but the end-user is the same. Ethereum is merely a platform and the virtual currency which is traded is Ether whereas Bitcoin is a virtual currency itself that has its own intrinsic value.
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