Is the World’s second largest Cryptocurrency, Ethereum better than Bitcoin or is it the opposite?
Bitcoin and Ethereum are the most preferred Cryptocurrencies to invest in. They are many complementary aspects of the Blockchain-based economy.
Bitcoin is the top-notch Cryptocurrency, the brainchild of Satoshi Nakamoto.
Sometimes Bitcoin plays a role in digital gold but most importantly it offers a dependable monetary system that is free from unbounded inflation and political intervention. On the other hand, Ethereum is slowly evolving into a world computer, it is more of a Blockchain-based programming language that enables code-based contracts and Decentralized applications.
It is kind of complicated about the future of Cryptocurrency given their extensibility and none of the coins have a defined sphere of operation.
It is evident that the Bitcoin users are economically as well as politically conscious of what Bitcoin is. The principles of Bitcoin Blockchain like individual sovereignty and free markets is very much supported by its users. With Bitcoin is a definite central planning and control. Bitcoin came into being with one goal and that is to counter central banks as well as big governments.
With Ethereum there is no ideological motivated goal as the entire community is focused on the technology’s future business and financial applications or the applications build on the Blockchain.
Bitcoin clearly has an advantage over Ethereum and other altcoins as it is the first Cryptocurrency.
If you take a look at Risk and Reward then there is an undeniable truth that the complexity protocol revolving Ethereum is prone to a larger attack by its adversaries. There is a heightened risk of attack in the Ethereum network which makes Ethereum inferior to Bitcoin as far as a store of value is concerned. If you dig more, you’ll find out that there is no decisive advantage that you can gain from Ethereum’s scripting language and to add icing on the cake, Ethereum’s scripting language cannot be duplicated via protocol-separate code. In future, if Ethereum develops a killer app to beat Bitcoin then Bitcoin might be in a serious trouble as Ethereum’s popularity is increasing as I type this answer.
Bitcoin Blockchain VS Ethereum Blockchain:
Bitcoin Blockchain –
Bitcoin is comprised of a PoW (Proof of Work) Blockchain that is composed of 1MB per block. Using SHA-256 hashing algorithm these blocks are mined in every 10 minutes. You can use ASIC devices is you want to mine Bitcoin. The Blockchain can process around 3 transactions in one second.
Ethereum Blockchain –
Ethereum currently has a PoW consensus mechanism in its Blockchain. And the great news is Ethereum released its much-awaited Casper Update that is set to combine both PoW and PoS consensus mechanism that will eventually change Ethereum’s PoW consensus mechanism to PoS. The blocks of Ethereum Blockchain is composed of blocks of variable size. And you can mine blocks in the average of 15 seconds by hashing a modified Dagger-Hashimoto algorithm. Dagger-Hashimoto algorithm is specially designed to resist the processing by ACIS devices to make sure that the mining in Ethereum network is performed exclusively with the use of graphics card. With Ethereum Blockchain you’ll be able to process 25 transactions per second.
As far as Scalability is concerned, Ethereum is the Clark winner here and it has the Shree advantage in terms of Blockchain scalability. Bitcoin might be the oldest and the #1 Cryptocurrency yet it is still in process of upgrading its transactional capacity.
Both Bitcoin and Ethereum are Decentralized so the hashrate distribution among the mining pool of these two cryptocurrencies is fairly equal.
If you mine Ethereum using high-end GPUs then you’re going to be very much profitable, especially given lower power costs. You can get an advanced graphics card under $200 can the bonus part is you can run high-end graphics intensive games and apps.
Bitcoin is profitable when it is mined using a specialized ACIS hardware that runs on very low-cost electricity. If you want to invest your money in a High-end ACIS hardware that it will cost you over $2000 per unit, yes pretty expensive.
Final Verdict –
As of today in 2018, I would not advise you to bet against Bitcoin. If the expected development like SegWit, the Lightning Network, Rootstock plays out perfectly them Bitcoin will retain its crown in the long run. Ethereum is not a safe bet either. But the uncertainty that surrounds Ethereum, increases its volatility making it a great instrument for traders. But this is exactly what Cryptocurrency market is all about the risks and the profits that come after you get cleared off with risks.