Jul 05, · Goldman Sachs, responsible for much of the American and global economy, is worth just $67 billion in market cap. Snapchat, responsible for the time-wasting of penniless teenagers, is worth $33 billion in market cap. Ethereum, responsible for literally giving you free money in flashloans if you know how to Solidity, is worth $25 billion. Dec 11, · Ethereum May Surpass Bitcoin’s Market Cap in the Next 10 Years, Says Economist Raoul Pal Reading Time: 2 minutes by Anthonia Isichei on December 11, Ethereum Economist Raoul Pal says Ethereum’s (ETH) probable adoption as programmable money may see it becoming the largest cryptocurrency by market capitalization, overtaking Bitcoin (BTC. Dec 11, · According to Coinmarketcap, Ethereum has a current market capital of $62 billion. This represents 18% of Bitcoin’s market cap that is crossing $ billion at the time of writing. If Pal’s prediction is anything to go by then Ethereum has a long way to go as its valuation is only a fifth of Bitcoin’s.
Ethereum market cap vs bitcoin market capBitcoin vs. Ethereum: What's the Difference?
Bitcoin is money and Ethereum is a decentralised computer dematerialised by the arcane magic of cryptography onto the internet: a science fiction dream, now a reality.
Any investor however novice should hold a little of both, if only as a gateway investment to get a taste of what this emergent revolution is all about. There are two families of crypto: currencies and tokens.
Both depend on blockchains which have currencies as their engines. If you wanted to dig deep, you could grid coins out along these two dimensions, but for me I only consider proof of work coins for investment. Mining is a process where anyone with a high-powered computer can compete to register the new set of transactions on the blockchain and get paid a reward for doing so. Tokens hang from certain blockchains. Ethereum is the king of this space and this was why Ethereum exploded into the number two position in the hierarchy of crypto behind Bitcoin.
Tokens can be traded on exchanges or via smart contracts on the chain itself. That token would be worth a lot. This Ethereum ecosystem drove the original ICO wave, a kind of wild west dotcom boom, because tokens can act as securities.
It is now driving the DeFi boom, a wave of financial service offerings where smart contracts are acting as financial institutions like, for example, online banks with just computers and no staff.
DeFi is exploding in the same way as ICOs erupted into the world and this development is turning the token idea into a gateway for some of the most incredible or risky or both financial and software developments currently emerging. You can certainly quickly make a small fortune from a large fortune with crypto and with DeFi and tokens this is even more the case.
Yet there are - and will be - huge opportunities for investment in tokens, but it is at the extreme horizon of risk and it is not for the novice. Ether is used mainly for two purposes—it is traded as a digital currency on exchanges in the same fashion as other cryptocurrencies , and it is used on the Ethereum network to run applications. While both the Bitcoin and Ethereum networks are powered by the principle of distributed ledgers and cryptography, the two differ technically in many ways.
For example, transactions on the Ethereum network may contain executable code, while data affixed to Bitcoin network transactions are generally only for keeping notes. Other differences include block time an ether transaction is confirmed in seconds compared to minutes for bitcoin and the algorithms that they run on Ethereum uses ethash while Bitcoin uses SHA More importantly, though, the Bitcoin and Ethereum networks are different with respect to their overall aims.
While bitcoin was created as an alternative to national currencies and thus aspires to be a medium of exchange and a store of value , Ethereum was intended as a platform to facilitate immutable, programmatic contracts, and applications via its own currency. BTC and ETH are both digital currencies, but the primary purpose of ether is not to establish itself as an alternative monetary system, but rather to facilitate and monetize the operation of the Ethereum smart contract and decentralized application dapp platform.
Ethereum is another use-case for a blockchain that supports the Bitcoin network, and theoretically should not really compete with Bitcoin. However, the popularity of ether has pushed it into competition with all cryptocurrencies, especially from the perspective of traders.
For most of its history since the mid launch, ether has been close behind bitcoin on rankings of the top cryptocurrencies by market cap. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages. Bitcoin vs. Other Cryptocurrencies. Bitcoin Value and Price. Cryptocurrency Bitcoin. Key Takeaways Bitcoin signaled the emergence of a radically new form of digital money that operates outside the control of any government or corporation.
With time, people began to realize that one of the underlying innovations of bitcoin, the blockchain, could be utilized for other purposes. Ethereum proposed to utilize blockchain technology not only for maintaining a decentralized payment network but also for storing computer code which can be used to power tamper-proof decentralized financial contracts and applications. Ether was intended to complement rather than compete with bitcoin, but it has nonetheless emerged as a competitor on cryptocurrency exchanges.
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