Bitcoin and Ethereum are the first two cryptocurrencies, in terms of market cap, and popularity. Although BTC holds the first position for many years, Ethereum does not stay still, and we can see a major development through the years.
If we look at the internet trends, we will see that Bitcoin remains the most popular cryptocurrency. It reached more than 28 million monthly searches on Google. The second and the third places were taken by memecoins Shiba Inu, and Dogecoin.
However, in 2022 Ethereum surpassed Bitcoin in terms of transactions. Actually, Ethereum achieved four times more transactions than Bitcoin. While Eth netted a total of 408.5 million transactions, Bitcoin amounted to only 93.1 million.
What are the main differences between Ethereum and Bitcoin?
The fact that Bitcoin was the first cryptocurrency, managed to attract many investors, including some large ones. The fact that it came out with a limited supply of 21 million, fostered the public interest.
Many enthusiasts use Bitcoin as a store of value, as it has shown stability during the years. Despite the extreme downs we see from time to time, Bitcoin doesn’t lose its general trend - it moves upwards. And if we look at the long term, we will see that its price increases.
If we are looking for an answer to the question “What are the main differences between Bitcoin and Ethereum?”, the answer is - everything.
Those two cryptocurrencies are completely different, and it all begins from the very basis of their concept.
Foremost, they have different goals. While Bitcoin is a digital currency, Ethereum was created as a full-fledged infrastructure for application development. Ethereum doesn’t have a purpose to provide only a tool of payment, but it strives to make a unique proposition to the crypto community. This includes:
Utilizing the platform’s native token ETH to create your own token, using an open-source code;
An opportunity to launch startup and ICOs on the platform;
In its nature, Bitcoin is monofunctional, while Ethereum has two main functions. The first one is to be used for trading, paying, transferring, etc., as any other cryptocurrency. The second is to be used for running applications on the Ethereum network.
To summarize, we can say that Ethereum is backed by the real value of its network, and its constant growth and development.
Ethereum shows high volatility in its volumes, while the Bitcoin network saw more stability in the level of transaction volumes throughout the year.
The high volatility of the Ethereum network was caused by the surge in demand, including some NFT and gas-intensive events. Furthermore, the Ethereum network boasted a wide range of applications, which increased its prospects for adoption.
As we already mentioned, Ethereum surpasses Bitcoin in terms of transactions, and this can be attributed to a higher number of investment opportunities.
Ethereum or Bitcoin - Which one is a better investment?
This may be one of the most active struggles in the crypto world - Bitcoin or Ethereum. Both have high popularity, and are recognizable among crypto investors. Both are pioneers of digitalization, and both have their followers, who will surely give you some good reasons to invest in the asset they have chosen.
If you have spent some time in the crypto world, you probably know that there is no right answer to the question, which one is a better investment. They both have their advantages and disadvantages. And with any other digital asset, you must know that they are highly volatile, and can bring great profits, and massive losses. As always, we can not give you financial advice. We can only tell you to do good research, and never invest more than you are willing to lose.
Cryptoarbi is an automated crypto arbitrage platform. We can help you find the best trading opportunities. All you need to do is choose a subscription plan, and we will do the work for you.