Ethereum vs Bitcoin Similarities and Differences

This would give it a Bitcoin vs. Ethereum capitalization of about $2.3 trillion. It’s an achievable target but far off from Bitcoin’s potential market cap. If decentralized gaming takes root, a lot of this money could flow into the Ethereum ecosystem. That’s a big deal to the long-term value growth of Ethereum. When DeFi became a thing back in 2017, less than $100k was locked up in DeFi platforms. At the peak of the recent crypto rally, this amount stood at $89 billion.

Ethereum and bitcoin have historically been touted as a hedge for inflation. When inflation expectations rise, you would want the relationship between the cryptocurrency and inflation expectations to be at least positive. Inflation expectations remained anchored while ETH prices have fallen.

Trade Ethereum to US dollar – ETH/USD chart

However, this does not, in any way, make it an inferior investment. Ethereum could outpace Bitcoin in gains in the short-term, as the number of Dapps building on it keep growing. As for scarcity, there are only 21 million Bitcoins that can ever be mined. The difficulty of bringing new ones into existence is also increasing continually. With Bitcoin’s ever-rising adoption chasing a limited number of coins, this will greatly impact its long-term value growth.

The cryptocurrency market is currently unregulated in the UK. When comparing Bitcoin vs Ethereum, it can seem like the two are inherent rivals, but this is not necessarily the case. Ethereum was launched in 2015 by a group of developers who were blockchain enthusiasts, including Joe Lubin and Vitalik Buterin. Ethereum is the largest and most well-established, open-ended decentralized software platform.

Bitcoin price chart:

The benefit of the leadership role for Bitcoin is that it could attract more investors. Cryptocurrencies in general, but specifically Bitcoin, are perhaps becoming more alluring for bigger investors, perhaps institutional investors as well. Bitcoin is well positioned to receive much of their attention, if 2017 is anything to go by, Ether may receive a smaller part of the investments – but that remains to be seen. You can clearly see the difference when you compare it to Ether, which had its bull sprints here and there, but not as consistently as Bitcoin.

According to Cochran, this could send Etheruem’s price ‘to the moon.’ So if you’re thinking about taking a punt on Ethereum, now might be a good time. The new platform will simplify Ethereum’s blockchain, increase user security and transaction speed, and reduce barriers to entry, making the network accessible to anyone with a standard laptop. But advanced testing is already underway, and programmers are optimistic that the platform will be fully operational by the end of 2020. As you can see, much of Ethereum’s value comes from its future applications. Ethereum has received public backing from some major players in the financial and tech spheres. Ethereum’s secure blockchain technology could make online voting a real possibility, ushering in a new age of democratic engagement and representation.

BTC and ETH numbers to know

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• You can check if you have Bitcoin by opening any Bitcoin wallet you may have created in the past.
• So if crypto goes mainstream, Bitcoin has a strong chance of becoming the currency of choice.
• If Bitcoin is intended to serve as a digital currency, Ethereum represents a decentralized platform which runs smart contracts.
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