The battle of the titans
We are living in a world were the crypto economy is going bigger and bigger. In fact, this type of system has a very forward-looking technology in it, because it allows to out arbitrage all banks and third parties when it comes to moving money from one side to the other. This is what makes ethereum and bitcoin two of the most growing currencies in terms of marketcap. By being so fast and reliable, it is very difficult to stop the growth of both currencies and they are going to play a bigger and bigger part in the future of our economy. However, if you decide to invest in one of the two, which one should you chose? There are different reasons why one is better than the other. In this little blogpost, we are going to cover some of the advantages of using ethereum over bitcoin and why you could be set much better for the future, if you decide to jump on ethereum rather than bitcoin.
Similar only at first glance
If you take a look at the structure of ethereum and bitcoin, you might find some intrinsic similarities. However, these are only on the front end, because if you look closely, you can be sure that you will be able to spot some fundamental differences between the two assets. Both have a constant currency, a blockchain, a decentralized system. But if we take a closer look at the specific of this three characteristics, we will find that ethereum is going in a very different direction, when compared to bitcoin.
An improvement
Bitcoin was the first crypto currency that ever existed. For this reason, the developers and inventors of ethereum had the possibility to learn out of the errors bitcoin made and improve them right from the beginning. If you only take the speed and transaction fees into consideration, ETH will be the clear winner. For instance, to verify a transaction, bitcoin can take up to 10 minutes, while ethereum completes the process in about 30 seconds and will only take approximately 5% of the cost that BTC would.
A different perspective
Bitcoin was designed to allow people to exchange services and goods without using the common currencies. With this intention in mind, the whole system was designed to substitute currencies and therefore the value of a bitcoin corresponds to a certain amount of dollars or a certain amount of solid gold. Ethereum took another approach. In fact, the intention of ethereum is to become the “world computer”, main fuel of the web. By providing a network for decentralized software and smartcontracts based on the blockchain, it has been specifically designed to meet that need. In a world where the development of software and apps is a big part of the economy, it is easy to see a future explosion of ethereum.
The end of an era
When you look at the charts, it is easy to see that we are only a few days/weeks away from seeing a change at the "digital pole position". When that happens, nobody knows how the market will react. Bitcoin could lose its status as the “big brother” and with that a lot of trust and value. Something like that could be the lethal hit which forces bitcoin on its knees and let it bleed out in the long term.
Final though
In conclusion, the most important thing to know is that ethereum wants to serve a whole different purpose. It's not meant to be money, it's made to change the future!
This post is only a short summary of my thoughts about eth and btc. It is NOT financial trading advice. Do your own research and never blindly trust strangers on the internet :P
Have a nice day everyone!