What is the difference between Bitcoin and Ethereum?

The Main Diffirences between Bitcoin and Ethereum are...

• Bitcoin is a cryptocurrency; Ethereum is a platform.
• Ether is the native token on Ethereum's blockchain.
• Bitcoin is the largest cryptocurrency by market capitalization, Ethereum is the second largest.
• Transactions are faster on the Ethereum network than on Bitcoin’s.
• Bitcoin was created as an alternative to traditional money, aiming to be a decentralized and digital cash system. On the other hand, Ethereum is not just a cryptocurrency.

Ethereum and Bitcoin share many similarities. In this article, we’ll try to highlight the most fundamental differences between them.

The biggest difference is the purposes or ultimate goals of these projects.

Bitcoin aims to be a store of wealth, a digital gold if you will, and eventually become a globally adopted currency which could improve or replace conventional money to some extent. The purpose of Ethereum is to become a platform upon which smart contracts and decentralised apps can run.

Another important difference is the supply. Where the number of Bitcoin is capped at 21 million ever to be produced, Ethereum is not capped to any specific quantity. Both Bitcoin and Ethereum are produced in a process called mining. There are plans to shift Ethereum production to a proof of stake model, which should be more environmentally friendly than mining. More information on proof of stake can be found in the links below.

There are several technical differences in the technologies that underpin the Bitcoin and Ethereum platforms but at this early stage of these projects, they may seem very much alike. As these projects grow and mature, however, the differences may become much more apparent and could affect their trajectories quite differently.

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Please note that the information below is not intended nor does it constitute financial or investment advice. Before making any decision or taking any action regarding your finances, you should consult a licensed Financial Adviser. The information and content provided below is provided  as general information. While every care and effort has been taken to ensure the accuracy of the information provided, we do not guarantee the suitability, accuracy or potential value of any information provided above. 

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About: Andries vanTonder

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