BTC Vs ETH — Can Both Live Harmoniously After Crypto Goes Mainstream?

The above comparison is solidly based on the fact that while Bitcoin and Ethereum are similar in some ways, they also have unique features and contributions they make in the crypto space. In other words, there are some activities that Bitcoin can be used for that Ethereum cannot accomplish and vice versa.

Although just like the parts of the human body mentioned earlier, the two cryptos are not equal and will continue so. This means that one of the crypto assets (either Bitcoin or Ethereum) will always continue to have more value or greater than the other, in terms of the number of users, price, etc.

Even when the crypto space goes mainstream, Bitcoin and Ethereum will record different growths that will place both assets in a hierarchy system.

In another light, as the crypto marketplace and future occurrences are unpredictable, the speculation of whether both Bitcoin and Ethereum can live harmoniously when crypto goes mainstream might turn out negatively.

Let’s now consider the distinctive features of both crypto assets that will either make or mar the relationship between Bitcoin and Ether in the long run.

Bitcoin

Purpose of Creation and Goal: Bitcoin, created in 2008 but released as open-source software in 2009 was based on the ideas from the whitepaper by its pseudonymous creator and owner, Satoshi Nakamoto. The cryptocurrency, being the first-ever, was created with the goal of becoming an alternative to national currencies, a medium of exchange, and a store of value.

The Bitcoin network was created to run an alternative monetary system different from the traditional financial system, in another term, a secure peer-to-peer decentralized payment system.

Programming Language: The Bitcoin network uses a programming language known as C++, which was introduced by Bjarne Stroustrup in 1985. The programming language is said to secure the network because it has less than 70 specific commands. This number of commands makes it much more difficult to hack any blockchain that is protected with the language, thus heightening security.

Supply: Bitcoin has a limited supply of 21 million coins. This means that only 21 million units of Bitcoin will be in circulation even after the crypto space has gone mainstream. The limited supply causes the value of the assets to rise over time and also prevents inflation. Currently, Bitcoin has almost 19 million circulating supply and one unit is more than $57.

Mining Method and Hashing Algorithm: The Bitcoin network uses the Proof of Work (PoW) system for mining. It is a decentralized consensus mechanism that was introduced by Hal Finney in 2004 where miners have to solve a mathematical puzzle in order to confirm transactions and complete blocks.

Finney’s PoW uses the SHA-256 hashing algorithm and Bitcoin was the first widely adopted application of that system.

Transaction Fee: The transaction fee on the Bitcoin network does not refer to the fees a user pays for using an exchange. This fee is determined by the data volume of a transaction and the congestion of the network; however, it is much cheaper than the fees paid on the Ethereum network.

Transaction Time: The time it takes to confirm a transaction on the Bitcoin network varies depending on the total network activity, hash rate, and transaction fees. However, the average time taken for confirmation of transactions is about 10 minutes which is slower than that of the Ethereum network.

Ethereum

Purpose of Creation and Goal: Ethereum was launched in 2015 by a programmer named Vitalik Buterin with a goal to facilitate immutable, programmatic contracts, and applications via its own currency.

Programming Language: The Ethereum network uses a programming language called Solidity. It is an object-oriented programming language that is used for implementing smart contracts, especially on the Ethereum blockchain. The programming language was developed by the Ethereum project’s Solidity team, headed by Christian Reitwiessner.

Supply: Unlike Bitcoin, Ethereum does not have a limited supply. However, that does not imply that the number of Ethers released each time will continue to increase. Due to the network’s upgrade to Ethereum 2.0 and switching to the Proof of Stake mechanism, the supply of the token is set to decline annually as the blockchain will start burning tokens. Ethereum currently has a circulating supply of more than 118 million and one unit is valued at about $4,000.

Mining Method and Hashing Algorithm: The Ethereum network is on the same ship as Bitcoin as both assets use the Proof of Work mechanism. However, due to the recent London upgrade which the Ethereum network underwent some months back, the network is currently running both the Proof of Stake and PoW.

The full transition will take place in 2022 according to the network’s officials. The PoS algorithm was first introduced in 2011 and unlike PoW, PoS consumes less energy, and users can mine or validate block transactions according to how many coins they hold.

Transaction Fee: The transaction fee on the Ethereum network also varies when there is congestion, but the fee is more expensive than that of the Bitcoin network.

Transaction Time: For Ethereum, it takes just 15 secs to add blocks to the network, unlike Bitcoin, which takes more time.

Conclusion

With the distinctive functions that Bitcoin and Ethereum perform in the crypto industry, no doubt one cannot replace the other. So, whether presently or even when crypto goes mainstream, both assets have so much to offer and more, together.

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