Bitcoin vs Ethereum: Differences and Which Should You Buy

What is Ethereum

Ethereum is a blockchain that went live in 2015. It has its own Ethereum currency called Ether (ETH) and its own programming language known as Solidity. It introduced smart contract functionality to the world of cryptocurrencies, which paved the way for a lot of altcoins.

Why is Ethereum better than Bitcoin?

It powers countless cryptocurrencies built upon its blockchain due to the high programmability it offers. While it uses proof-of-work mining, it plans to switch to a proof-of-stake model when Ethereum 2.0 releases.

This means that any user who owns a minimum of 32 ETH could lock the funds up in a contract and start earning rewards for solving computations required to add new blocks to the blockchain. 

Ethereum is not a Bitcoin alternative. It is simply an attempt to improve blockchain technology.

What is Bitcoin

Launched in 2009 by Satoshi Nakamoto, Bitcoin introduced an idea to the world showcased in the white paper "Bitcoin: A Peer-to-Peer Electronic Cash System" that essentially re-shaped the way we perceive currencies. It offered this promise of an online currency that is secured without a centralized authority behind the wheel. 

There are no physical Bitcoins available, and they are all just balances that are connected through a cryptographically secured public ledger known as "The Blockchain." Keep in mind that Bitcoin wasn't the first, and there were ones that failed before it. However, due to its success, people started seeing its potential.

Bitcoins or BTC are the native cryptocurrency tokens of the Bitcoin blockchain, which need to be mined by a group of miners. These miners need to validate the transactions using raw computer power, such as GPUs, and once they validate a block, it is added to the blockchain, and they receive newly mined BTC as a reward. This is known as the proof-of-work consensus algorithm.

Bitcoin vs Ethereum Price Evolution

Currently, Bitcoin's value ranges between $30K and $35K. However, historically, it has been quite volatile:

• In 2009, the bitcoin software was made available to the public for the very first time. In 2010, it was valued for the very first time.
• In 2010, 10,000 BTC were sold for purchasing two pizzas, showcasing that it could indeed provide some value.
• In 2013, the price of bitcoin started to reach over $1,000 for the very first time.
• In 2017, Bitcoin started rising to over $10,000 for the very first time.
• In 2021, it hit its all-time high of $64,829.

If you want to get an idea of how the price might evolve in the future, check out our Bitcoin price prediction article.

Ethereum's current value, on the other hand, is at around $2,000. Historically, Ethereum (ETH) has also had quite a volatile run:

• Once it launched in 2015, it stood around the $1 mark for quite a while.
• In 2017, it got over the $100 mark for the very first time.
• In 2018, it climbed to over $1,000 for the very first time.
• Then in 2021, it also hit its all-time high with a value of $4,382.

If you want to get an idea of how the price might evolve in the future, check out our Ethereum price prediction article.

Which One Should You Buy?

These two cryptocurrencies do not exclude each other. As a trader, you should probably be looking at and monitoring as many cryptocurrencies as you can to find the best possible trade.

In other words, you should invest in both cryptocurrencies if you have the opportunity to do so.  

Moreover, you don't need a lot of money to get started. You can purchase all cryptos in fractions. 

ETH to BTC – Can You Exchange

You can use numerous cryptocurrency exchanges to trade between ETH and BTC. In fact, there are over 300 cryptocurrency exchanges online.

This might sound a bit scary, especially if you're new to the crypto world. But don't worry, we have the solution for you. Our crypto exchange comparison platform can help you pick the best service provider for your specific needs. 

All you have to do is answer a few simple questions, and our algorithm will show you immediately which crypto exchange best suits your needs.