Bitcoin vs Ethereum—Which One Should I Pick?
You probably already know that Bitcoin was the first cryptocurrency of its kind. This isn’t to say, though, that it is the only one out there. Many more cryptocurrencies have emerged, and many of them attempt to compete against Bitcoin. Ethereum is one of the most popular of these newer digital currencies because it has a lot in common with Bitcoin.
Can’t choose between Bitcoin and Ethereum? Here are some distinctions between the two cryptocurrencies, culminating with which one to choose:
1. Transaction Speed
Over the last several years, there has been a lot of discussion regarding Bitcoin’s transaction speeds. It is a well-known truth that Bitcoin transactions take longer than Ethereum transactions. As a result, the number of users that can use the platform at any one moment is limited.
Because of Ethereum’s smart contracts, transactions are confirmed quickly and efficiently. Most of Ethereum’s transactions are confirmed in only a few minutes. In fact, some of the largest Ethereum transactions are processed in as little as 20 seconds. However, despite its improved scaling capabilities, Ethereum can still handle a larger number of transactions than Bitcoin, making it an even better choice.
2. Transaction Fees
Ethereum employs a transaction fee known as “gas.” This is the charge for using the network, and it is calculated per transaction. The good news is that, when compared to the Bitcoin network, the Ethereum network offers significantly less expensive transactions.
The transaction fee for Bitcoin is typically several dollars depending on network traffic and other circumstances. On the other hand, Ether transaction costs are pennies since there is no agreed-upon price for gas. Gas prices are set by the network instead of being determined by a pre-determined price.
3. Number of Transactions
Bitcoin and Ethereum are both blockchain-based payments systems. Bitcoin can handle around seven transactions per second, whereas Ethereum can process around 20 transactions each second. This is due to the fact that the Bitcoin network has a block size of 1MB, but the Ethereum network has a block size of more than 20MB.
So, if you want to use cryptocurrencies as a way to avoid paying high fees and waiting in long lines to make transactions, then Ethereum is the obvious choice. With Ethereum, you are able to enjoy fast transactions that cost a lot less money.
Bitcoin is available on most exchanges, but Ethereum is not nearly as available as Bitcoin because Ethereum is a newer cryptocurrency compared to Bitcoin. If
If you want to get your hands on Ether, it’s going to be a little more difficult than it is for Bitcoin. That being said, there are some exchanges that have added Ethereum support in the last several years. For example, Binance is a popular exchange that has added support for ETH purchases.
5. Ease of Mining
If you’re looking to mine, instead of purchase, Bitcoin is the most valuable cryptocurrency, but it can take a lot of time and energy to mine. The process has become so popular that only large companies are able to run mining operations for Bitcoin. On the other hand, Ethereum mining requires less processing power than Bitcoin does because its blockchain was designed differently from the get-go.
Mining affects the Ethereum network in two ways: it ensures that all the transactions on the platform are valid, and it releases more Ether into the market. Mining is legal and can even be done by a novice computer user since there isn’t as much processing power required.
If you are looking for a fast and low-cost cryptocurrency, then Ethereum is the obvious choice. However, if you are looking for the best of the best, then you’ll have to look no further than Bitcoin, as it is now the most popular cryptocurrency on the market. Keep in mind that your decision will be based on what you want out of the crypto and the experience of using it as well.