Bitcoin vs Ethereum. What’s the difference? Which is better?

Bitcoin vs Ethereum

Key Takeaways

  • Bitcoin vs Ethereum debate stems from the fact that both currencies serve as cornerstones of the current crypto market;
  • Bitcoin is seeing more retail use and is even recognised as legal tender. Ethereum is more popular with institutional adopters;
  • Will Ethereum overtake Bitcoin? The proponents of the flippening say so but the opponents of this idea stick to Bitcoin rightfully being at the first place.

What is Bitcoin?

To compare Bitcoin vs Ethereum, a general overview of both is in order.

What is Ethereum?

Bitcoin served as a basis for many altcoins but they all had their limitations. For example, it was challenging to transfer data or execute conditional transactions on Bitcoin as it was.

Bitcoin vs Ethereum

Bitcoin and Ethereum coins
Source: Jaap Arriens | NurPhoto | Getty Images

Use Cases

What is the difference between Bitcoin and Ethereum? The first thing to come to mind would be their use cases.

Scaling

When it comes to scaling the network, Bitcoin vs Ethereum are not that different. Since both networks have a relatively low throughput by default, there have been many attempts to solve this problem.

Security

As they are today, both Ethereum and Bitcoin use Proof-of-Work consensus algorithm. It means miners, who solve cryptographic hashes to propagate the chain, secure the network.

Narratives

A very important facet of adoption is building a narrative around the currency, which outlines the use cases and the future. Since there is no common knowledge about these currencies on a mass scale, narrative acts as its substitute and an introduction.

Adoption

When it comes to adoption, Bitcoin is definitely in the lead in comparison to Ethereum. It has historically dominated the peer-to-peer market, and even became legal tender in El Salvador this year.

Future

No matter which side of the Bitcoin vs Ethereum debate you are taking, everyone is equally concerned about future-proofing the tech. One of the topics of debate is the environmental impact of these currencies.

Should I buy Bitcoin or Ethereum?

To compare the price dynamics of both currencies, let’s refer to the Bitcoin vs Ethereum price chart.

Bitcoin vs Ethereum price chart
Source: TradingView

Conclusion

At the end of the day, both of the top currencies have their advantages and prospects, so allocation to both is the best option. No matter which you choose, don’t forget both Bitcoin and Ethereum can be bought and exchanged on ChangeHero!

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