Ciara Walsh
Author
Cryptocurrencies have filled the financial market, and their popularity doesn’t seem to fall in the nearest future. More and more people are buying, investing, gambling, and using crypto in various other ways. And it’s only natural if you want to give it a try, too – whether to understand what the fuss is about, earn some money, or find a safe payment method.
However, as the choice of cryptocurrencies is limitless, it can be challenging to decide which one to use. Don’t worry, though – we’re here to help. In this article, you will learn the difference between two most popular cryptocurrencies: Bitcoin and Etherium. We’ll tell you how they appeared, where they are used, and which to choose for different purposes. Read on, and start looking for Bitcoin exchange platforms or online casinos with free Eth slots.
Crypto-Decision: Ethereum or Bitcoin? Source: shutterstock.com
Bitcoin
Bitcoin is the first cryptocurrency ever invented. It was released in January 2009 by a mysterious programmer named Satoshi Nakamoto. The main idea behind Bitcoin was to create a medium of exchange that could be used by people worldwide.
The technology behind Bitcoin is called a blockchain. It is a distributed database shared by all nodes participating in a system. A blockchain is a public ledger of all transactions on the network. Each block on the blockchain contains information about the previous one, linking them together into a single chain. This makes it impossible to rewrite a record without having access to all blocks in a chain.
Another interesting thing about Bitcoin is that it has a limited supply. Only 21 million Bitcoins will ever exist, and they can’t be printed out at will. This makes them extremely valuable, and their price keeps increasing over time. To be exact, 1 Bitcoin costs around $35,000 at the moment of writing this article.
Where Is Bitcoin Used?
You can buy Bitcoin on specialized exchanges, invest in it, or store it safely in your crypto wallet. You can also use them for online purchases or in shops where they are accepted, as well as for online gambling or other online services. And if you want to pay someone in cash, you can use some services that exchange bitcoins for cash or bank transfers.
Ethereum
Etherium is another popular cryptocurrency, which appeared after Bitcoin in 2015. It has become more and more popular, and nowadays, it has the second-highest market cap among cryptocurrencies after Bitcoin itself. Etherium is considered to be the second most important cryptocurrency after Bitcoin because it has several benefits over its predecessor.
For example, Etherium has lower fees for transactions, and its technology is easier to implement than Bitcoin’s. And its programming language makes it possible to write smart contracts – self-executing pieces of code that nobody can change once they’ve been deployed on the blockchain.
Ethereum uses blockchain technology, but with some differences from Bitcoin’s approach to it. It doesn’t have a hard limit on the number of units – the total supply of ETH will grow with every year approximately 18 million ETH will be added annually according to the formula (5 ETH for each block).
Where Is Etherium Used?
The most popular way to use Etherium is by buying it on exchanges and trading it for other cryptocurrencies or fiat money (USD, EUR, etc.). This way, you can increase your investment portfolio and make some money on rising prices. On top of that, Etherium is used as payment for many services online, including e-commerce and gambling.
So Which One Should I Choose?
If you want to buy a cryptocurrency with low fees and fast transaction time (for example, to use it as a payment method) – choose Etherium. It is much better suited for fast micropayments due to its lower fees and faster block times than Bitcoin’s blockchain does.
However, if you want to buy some coins at a low price and sell them later at higher rates, choose Bitcoin. It has a bigger community than Etherium, so there are more buyers and sellers on exchanges, and it’s easier to find someone who will buy your coins instantly at the current rate rather than wait for transactions on Etherium’s blockchain that might take some minutes or even hours.
Another reason why Bitcoin is better suited for short-term investments is that it has a larger market cap than Etherium, so its price changes significantly faster than prices of other cryptocurrencies do so if you want to buy some coins and sell them in the nearest future, Bitcoin is your best choice.
Conclusion
Bitcoin and Etherium are two of the most popular cryptocurrencies today. They are both great in their own way – Bitcoin is a better choice for short-term investments while Etherium is better for purchases. However, both of them are suitable for payments, and you can use them for online purchases or cash payments in shops that accept them whenever you want.
And if you want to diversify your investment portfolio, you don’t have to choose – you can simply buy both of them and use whatever you need when you need it. This way, you won’t have to worry about risks or market volatility – just buy some coins and use them as you see fit.
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