It's hard to think about crypto without Bitcoin or Ethereum coming to mind first. I mean, it's pretty much the only thing the media talks about in regards to crypto. Both ranked #1 and #2 respectively with market cap, Bitcoin and Ethereum dominate the crypto market and crypto world as a whole. What is it that sets them apart though? They both do the same thing, right? Not quite! Come with me on this dive into finding out what the difference is between Bitcoin and Ethereum!
I am not sponsored by CoinMarketCap, Bitcoin, or Ethereum.
This is not financial advice. I am not a financial advisor.
Please do your own research before making any decisions before investing.
This article is meant for educational purposes only.
If they aren't the same, then how are they different? I'm going to explain both Bitcoin and Ethereum, what they are used for, and how they are beneficial to the crypto world. I will also include their current trading chart on CoinMarketCap as of publishing this article so we can see where they stand as of right now!
Bitcoin is is a deflationary digital currency coin. Rather than a government printing new money to put into the market without your ownership, you own your digital currency. This is known as "decentralization". You always see it being compared to gold and that's because it's also a stored value. Just like there is a limited amount of gold that you can harvest from the earth, there is a limited amount of Bitcoin that can be harvested as well. You ever hear of the California Gold Rush? We are directly in the midst of a Bitcoin "gold rush" as we speak. Bitcoin used as a currency in countries with current unstable currencies can be highly beneficial in the long run. No bank or government can control the amount of currency in circulation, and it can be used to purchase goods and services securely.
Also, did you know that roughly 2/3 of the world's population doesn't even have access to a bank to begin with? Participating in the global market at this point would be a no-brainer, since they already can't store their money that isn't owned by them to begin with. When you put fiat currency in those terms, do we really own anything ourselves ever?
Ethereum is an inflationary digital token. This means that different Ethereum tokens are steadily being added to the network. It does not compete with currency, such as Bitcoin, but it competes with contracts on networks, most popularly, Smart Contacts. My favorite way of remember how a contract works is comparing it to a vending machine. You pay the fee, select whatever you want, and the machine dispenses your selection. We deal with these "contracts" every day in the real world without even taking the time to realize it. If you pay your car payment on time every month, you are allowed to keep your car. If you don't, I hope you have some nice walking shoes. This same logic is used in contract codes. Smart contracts work like this in comparison: if I sign the deed to my house, I now own it, and no one else.
This is beneficial because in the real world, and if you live somewhere with a corrupt government, even though you signed the deed to the house, the government can come take it away from you. Why? Because the government is in control of the land, controlling anything on that land in its' entirety. With Ethereum, this is a big innovation because these smart contacts stop this from happening. Ethereum can be used for a wide variety of things, ranging from tracking your health over time to tracking any and all transactions you make!
I hope this article helps you further understand the difference between Bitcoin and Ethereum! I know when I was getting into crypto, I had no clue what the difference was or why it even mattered to begin with. With this new knowledge, hopefully you are able to better differentiate between what goes on between these two cryptos!
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BTC: bc1qpn9vsgtljfy7ykz2qwzhdsrksfk063j3k7d6u7
ETH: 0x0A5CD2BE0f40D76da84f7D87bdb2B71ae1A7dDB3
VET: 0x47360C9f3945764430de1dA4Eb6432Fb0D1d52E9
