A decentralised blockchain app platform. Coin Market Cap Rank: 2 Current Market Cap: $48,155,898,679 Website:…
Global interests in Ethereum (ETH) have led to a constant comparison to Bitcoin (BTC) – the digital gold among all cryptocurrencies.
Ethereum prices grew rapidly, but still, far behind Bitcoin. While the value of Bitcoin skyrocketed towards the end of 2017, the Ether cryptocurrency received 3 times more transactions.
Bitcoin was the first digital currency to launch back in 2009, while Ethereum only took presence in the cryptocurrency ecosystem in 2015. Later, cryptocurrency exchanges, like Coindirect, took prominence. Here, investors of the digital currency can buy, sell and trade Ethereum to make a profitable return on investment.
Ether holds a second-place ranking on the cryptocurrency market – an achievement of the establishment made in just 2-years after its launch, compared to Bitcoin’s 7-year growth to 1st place. Today, Ethereum is still the most transacted digital coin on the blockchain.
So, what does this say about the future of Ethereum and its rapid growth? Can the digital currency make its way to the top of the cryptocurrency chart?
Ethereum (Ether or ETH) vs. Bitcoin (BTC)
Ethereum and Bitcoin are not enemies. In fact, they each hold unique purposes. Simply said:
- Bitcoin (BTC) is a digital currency.
- Ethereum (Ether or ETH) is a digital platform that has been built for running decentralised applications like ‘smart contracts’.
It’s true that Vitalik Buterin’sEthereum altcoin is the second largest and most well-established decentralised platform. Apart from enabling the function of running smart contracts, the software platform is also capable of running a wide variety of ‘distributed applications’ (DApps). It also functions as a programming language (Turing complete) which run on a blockchain and help developers build and publish distributed applications.
Additionally, the platform runs on its own cryptographic token, called ‘Ether’ (ETH). Ether can be traded as a digital currency exchange on cryptocurrency trading platforms like Coindirect. Users can, therefore, buy Ether and use it to run applications.
But, truth be told, Ethereum cannot be compared to Bitcoin. Both of the cryptocurrency market and blockchain’s top cryptocurrencies are vastly different in their intentions.
Who will win the cryptocurrency chart race?
Ethereum gives good grounds for high expectations.
Bitcoin simply emerged as a stable virtual currency… A digital alternative to fiat currencies (regular money). The leader of the pack essentially acts as a medium for payment transactions and the storage of Bitcoin (BTC) values. The vehicle driving the operation of Bitcoin cryptocurrency is the blockchain.
On the other hand, it’s clear that Ethereum aims to clinch towards a masterstroke. It even has its own vehicle to facilitate peer-to-peer contracts. What makes Ether different to Bitcoin is that it is not a payment alternative. It facilitates the building and running of DApps.
There has been a surge in the interest in decentralised applications. This uproar sparked off confirmation times and transaction fees; in turn, causing a steep increase in Ethereum prices. This ultimately means that Ethereum needs to refine their scaling. With the development of Ethereum being influenced by the Ethereum Foundation’s proposal of improvements, developers are able to bring forward solutions for scaling these problems.
The cryptocurrency platform is, however, making big headliners this 2018. Ethereum aims to transition from a Proof-of-Work (PoW) block validation method to a Proof-of-Stake (PoS) block validation method for Ethereum mining. According to Ethereum, the PoS consensus algorithm, also known as ‘Casper’, is expected to be “more efficient” and “require less mining subsidy”. The result? Users will have to stake cryptocurrency to verify blocks, which can impact the Ethereum price and value.
Will this impact be positive or negative?
Though Ethereum’s advancement is based on blockchain technology like Bitcoin, it does not compete with BTC. However, the rising market capitalisations of the Ether coin does make it a competitor to Bitcoin, especially when mining or trading the ETH altcoin.
The bottom line
Overall, Bitcoin and Ethereum use blockchain technology in their own unique way – self-driven in their own goals. Out of all altcoins and Bitcoin, analytics and market sentiments show that Ethereum is being used the most on cryptocurrency exchanges and cryptocurrency wallets.
Ethereum has been experiencing a lot more transactions due to its fast block time and advanced Ether blockchain technology. As a result, trading Ethereum on Coindirect is dominating the way in which users boost their return on investment.
Coindirect is running a Cold Storage Hardware Wallet Giveaway
For the next 3 months, Coindirect will be hosting a series of competitions. Each month, you could win a selected cryptocurrency, and a cold storage, hardware wallet in partnership with Trezor and Ledger.
For the month of October 2018, we’re giving away 150 XRP* and one Nano Ledger S hardware wallet*.
Follow the below links for more information on how to enter each competition.
- 150 XRP: https://blog.coindirect.com/ripple-giveaway
- Ledger Nano S: https://blog.coindirect.com/ledger-nano-giveaway
Access our integrated platform and #OwnTheFuture with Coindirect.