Bitcoin has evolved over the course of the decade. From what was once called imaginary Internet money at the onset, Bitcoin today has positioned itself as a leading digital asset that even traditional financial institutions are taking seriously.. In fact, according to CoinMarketCap, Bitcoin dominates the crypto-space with a gargantuan market cap of over $ billion, followed by Ethereum that. Sep 14, · For the second consecutive time, the sum of volumes on Ethereum during the weekend exceeds those of Bitcoin.. In general, today the volumes are stable at the average of the last few days even if they are decreasing from the records set last weekend.. The dominance of Bitcoin hardly remains above 56%, while Ethereum’s market share is stabilizing close to last year’s highs at %. Dec 16, · On the other hand, Bitcoin continues to hold between $19, and $19,, while Ethereum is above $, but upward movements are limited under $ Interestingly, some altcoins in the top 50 seem.
Trading between bitcoin and ethereumETH BTC – Ethereum to Bitcoin Price Chart — TradingView
Ether and bitcoin are similar in many ways: each is a digital currency traded via online exchanges and stored in various types of cryptocurrency wallets. Both of these tokens are decentralized, meaning that they are not issued or regulated by a central bank or other authority. Both make use of the distributed ledger technology known as blockchain. However, there are also many crucial distinctions between the two most popular cryptocurrencies by market cap.
Below, we'll take a closer look at the similarities and differences between bitcoin and ether. Bitcoin was launched in January of It introduced a novel idea set out in a white paper by the mysterious Satoshi Nakamoto—bitcoin offers the promise of an online currency that is secured without any central authority, unlike government-issued currencies.
There are no physical bitcoins, only balances associated with a cryptographically secured public ledger. Although bitcoin was not the first attempts at an online currency of this type, it was the most successful in its early efforts, and it has come to be known as a predecessor in some way to virtually all cryptocurrencies which have been developed over the past decade.
Over the years, the concept of a virtual, decentralized currency has gained acceptance among regulators and government bodies. Blockchain technology is being used to create applications that go beyond just enabling a digital currency.
Launched in July of , Ethereum is the largest and most well-established, open-ended decentralized software platform. Ethereum enables the deployment of smart contracts and decentralized applications dapps to be built and run without any downtime, fraud, control or interference from a third party. Ethereum comes complete with its own programming language which runs on a blockchain, enabling developers to build and run distributed applications.
The potential applications of Ethereum are wide-ranging and are powered by its native cryptographic token, ether commonly abbreviated as ETH. In , Ethereum launched a presale for ether, which received an overwhelming response.
Ether is like the fuel for running commands on the Ethereum platform and is used by developers to build and run applications on the platform. 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. Ethereum, on the other hand, is more often used as gas fees in transactions for other tokens and benefits significantly as a result. As ETH is used to fund transactions at rising costs, DeFi users, for example, must buy up Ethereum to pay for associated fees.
Doing so drives up the price of Ethereum. Ethereum can be seen as an ecosystem and the fuel that powers it, while Bitcoin is a currency in and of its own right.
Both have extreme value and potential, both as a technology and investment, but only one can be the best of the best. Because these two crypto assets are vastly different, it is difficult to say exactly which is the best investment. Both Bitcoin and Ethereum started out their lives at prices that were virtually worthless. Around this time is when Ethereum was first created. Meanwhile, Ethereum started to benefit enormously from the emergence of initial coin offerings — a trend that saw the creation of thousands of new altcoins built on top of the Ethereum blockchain as ERC20 tokens.
The popular crowdfunding and fundraising method let investors get in early to what they expected to be the next Bitcoin. This suggests that Ethereum could climb a lot faster than Ethereum per coin, but Bitcoin price predictions go a lot higher than Ethereum price predictions.
Both are reasonable estimates for each cryptocurrency. Signs suggest that this over performance in Ethereum is over for the time being, with Bitcoin set to regain some lost ground against the second ranked cryptocurrency and top altcoin. Bitcoin and Ethereum rise together as part of the greater crypto tide, but there are times when each outperforms the other. However, Bitcoin could be ready for a massive explosion and break out into a bull run — which could leave Ethereum behind on its ratio.
Clearly, investing in these two cryptocurrencies can be challenging due to the ratio on cryptocurrency trading pairs. Although they can perform well together, when crypto assets are falling, altcoins like Ethereum tend to drop far more sharply and are more volatile. The best case scenario for investors is to trade the Bitcoin and Ethereum ratio, along with positions in Bitcoin and Ethereum itself, so that profits can be made whichever way the crypto market turns while taking full advantage of the swing opportunities that take place between Ethereum vs Bitcoin.
PrimeXBT also offers crypto-to-crypto trading pairs, allowing for the most varied trading positions and diverse trading portfolio. Traders can even hedge their Bitcoin holdings with Ethereum or short one on the ratio to profit from the ebb and flow between them. The process takes just a few clicks and less than a minute. Accounts require a minimum deposit of only 0. To begin, it is recommended to use the analysis section to chart a trading strategy, stop loss, and take profit levels before executing a trade.
After building a plan, traders can set a limit order or market order for a long or short trade on Bitcoin or Ethereum, or even Bitcoin vs Ethereum.
The main difference is in the fact that Bitcoin is mainly designed for storing value and moving it as a payment currency; Ethereum is a blockchain ecosystem and supercomputer that developers can use to build all kinds of unique experiences on.
No, there will ever only be one Bitcoin, but Ethereum has a place in the market. Some day it could beat Bitcoin as the number one cryptocurrency, but they will always have separate use cases, and therefore Ethereum cannot be the next Bitcoin.
Ethereum cannot reach the price of Bitcoin without reaching trillions of dollars in market cap. It is possible, however, it is unlikely given the fact that as Ethereum price grows, so will Bitcoin, making it impossible to catch up with the top cryptocurrency.
In a sense, it is more flexible than Bitcoin, so some may believe that Ethereum is better than Bitcoin. However, Bitcoin is currently the top ranked cryptocurrency, so it is considered better by a vote of capital. If Ethereum can overtake Bitcoin, then it is possible that Ethereum will be the best, but they also could continue to live on together well, each with their own unique use cases.
Whether or not you should buy Ethereum or Bitcoin is ultimately up to the individual investor and trader. This guide should have provided you with all you need to make such a decision; however, additional research is always recommended. Bitcoin being more expensive than Ethereum is a simple supply versus demand math equation. There is far less Bitcoin in circulation and in maximum supply than there are ETH tokens, which makes the price per Bitcoin rise much faster as capital comes in.
Each cryptocurrency asset offers a variety of unique benefits over one another.