The cryptocurrency market is gradually surging at this very moment. This market growth of cryptocurrency is attracting many investors from all over the world towards the cryptocurrency. The main reason for this sustenance of cryptocurrency is Blockchain. The Blockchain technology is now being used in many sectors where others are finding applications of Blockchain in their respective sectors. This innovating technology was founded with the first cryptocurrency, the Bitcoin where the complete system was run on the principal of Blockchain.
Many other cryptocurrencies were derived from Bitcoin such as Ethereum but they used different technology and algorithm. Ironically, the Bitcoin is ranked as the number one cryptocurrency and Ethereum is ranked second in the list of best cryptocurrency. Both of these cryptocurrencies are worth multi-billion dollars where investors make extensive efforts to invest in them. The Bitcoin and Ethereum cryptocurrency are completely different, even still they are attracting great investors and helping them build great profit. Here are some major differences between Ethereum and Bitcoin that can help you understand these cryptocurrencies in detail.
The issuance of new coins is an important factor that defines the success of the cryptocurrency. The Bitcoin issues 12.5 new Bitcoins every 10 minutes where Ethereum creates 3 new Ethereum coins every 15 seconds. This is the main reason the Ethereum coin is gradually gaining grounds in the cryptocurrency market but it has a long way to go to reach Bitcoin.
The block time is decided based on the time that the cryptocurrency algorithm takes to hash the coins. Hence each cryptocurrency has different block time because of different hashing algorithms. The Bitcoin takes around 10 minutes to generate a block, where Ethereum takes 15 seconds to generate a block. “Less the block time, faster the transaction of the cryptocurrencies” hence this rule applies to the cryptocurrencies.
The SHA-256 hashing algorithm used by Bitcoin is one of its kind. But later when Litecoin was found, they introduced the Scrypt algorithm which inspired other cryptocurrencies to give out their personalized algorithm. Ethereum was one of those cryptocurrencies to introduce Ethash algorithm for the proof-of-work that reduces trouble in transaction and mining.
The market of each cryptocurrency is different as they have different users investing in each of them. The market growth of both Ethereum and Bitcoin are completely different because of the different user adoption rates. This has also led the market capital of Bitcoin to be around $127 billion USD and the market capital of Ethereum to be around $42 billion USD. Hence both these cryptocurrencies have different market portfolios.
Both the cryptocurrencies are not at all hard to obtain. Although the process of obtaining the cryptocurrencies is the same, the prices of both cryptocurrencies are different. The investor can obtain any cryptocurrency in exchange for USD or other cryptocurrencies. There are many online exchange platforms that act as Ethereum to Bitcoin converter and vice versa. The values of both cryptocurrencies are different therefore each time you convert your coins with the other, different values will be obtained.
Here are the major differences between Bitcoin and Ethereum. These differences are completely necessary to be known by the investors if they wish to collaterally invest in both the cryptocurrencies. There are many cryptocurrency exchange platforms like Evonax where you can obtain cryptocurrencies like Bitcoin and Ethereum. Happy investing!