As a crypto expert working in the cryptocurrency industry, I spend ample time discussing cryptocurrency trading businesses with various clients – and as the time goes on, the number of investors in cryptocurrencies seems to grow substantially.
It really hits hard just knowing how many cryptocurrencies are there when you think of the last few years. Humans have invented 7x of the currencies than the governmental currencies that already existed. Among them, undoubtedly the 2 most popular cryptocurrencies are Bitcoin and Ethereum.
Right now, there is absolutely no doubt that Bitcoin is head and shoulders above Ethereum, however, keeping in mind Bitcoin’s recent value drop, several questions have arisen doubting the supremacy of BTC.
Could Ethereum grab this opportunity and overtake Bitcoin?
Major Differences Between Bitcoin and Ethereum
Before we dug deeper, it’s extremely crucial to understand that practically, Ethereum and Bitcoin have some major differences. And they’re not alike!
Speaking from a technical point of view, the usage of Bitcoin has no limitations or restrictions whatsoever. Although it deals with something other than Pounds or Dollars, it performs the exact thing. In our bank accounts, Money exists and it’s placed safely. It might give us the freedom to do several things, however, it doesn’t engage in any activity itself. Despite everything, Bitcoin is incredibly rich. Its popularity has made it mainstream, and now it’s used as a medium of payment in numerous cities, towns, and shops.
On the other hand, Ethereum or ETH is a computing medium that offers scripting language for smart contracts. What this means is, there exists a blockchain on which a bunch of contracts could be written and executed automatically in case a series of events occur. As with the majority of the blockchains, ETH is completely open-source, which means that everyone can use it to write and implement smart contracts.
On the Ethereum blockchain, Ether is the deployed unit of value, and therefore it shares some specific characteristics with BTC.
The Value Of The Cryptocurrency Market
Almost all of the big cryptocurrencies have trended in pretty much the same manner, although they function differently. As of today, Bitcoin’s market is $117.8 billion, whereas Ether’s is around $26 billion.
ETH’s anticipated threat to BTC is not a mere comparison of just worth. In reality, there are major differences in how each of them performs, as the market continues to stabilize the value of both Ethereum and Bitcoin.
In the past, all of us have experienced that with the market capitalization of all cryptocurrencies taking a massive blow. This has been happening because of the United Kingdom’s mortgage companies declining to accept funds produced from specific cryptocurrencies as deposits for properties, to concerns about further governmental restrictions in jurisdictions around the world.
Ethereum – Benefits Beyond Cryptocurrency
Ether is merely a product of Ethereum. Ethereum is a massive computing network that gives everyone the freedom to create a decentralized application. If a business is looking for a blockchain developed solution, it could hire a skilled programmer to develop that on Ethereum’s platform.
Ether possesses the ability to perform all the same operations as BTC when it is connected with the ETH platform.
As we’ve witnessed in the past, governments are starting to place limitations on cryptocurrencies, worried that their citizens are wondering about a particular thing which their governments feel they don’t clearly comprehend. Whereas this could massively impact Ether, ETH would still remain unaffected. If governments continue to place limitations on cryptocurrencies including Ether, businesses will still be able to use the ETH medium for payment services, which banks and several other entities are doing already.
The greatest threat to Bitcoin is none other than the BTC itself. With the constant news of government restrictions and the current tag of financial crime driving market behaviors. Ether has a substantial advantage of being connected with ETH.
Ethereum can do what Bitcoin can’t. The limitations being put on the bitcoin will majorly benefit Ethereum. Keeping in mind the total market capitalization of both the cryptocurrencies: BTC and ETH is way south of the market capitalization of a few of the globe’s greatest companies. Ethereum is quite clearly giving a hard time to Bitcoin.
As of now, there is plenty of room for both the cryptocurrencies, but it’s apparent that right now, Ethereum “can’t overtake” Bitcoin.