• Tue. Jan 11th, 2022

    Bitcoin versus Ethereum? Can bitcoin turn out to be a bit overrated in the long run compared to Ethereum?

    ByHazel R. Lang

    Oct 20, 2021

    Bitcoin is – without a doubt – the oldest and most popular digital currency in the crypto universe followed by Ethereum. Thanks to some notable differences in their technological infrastructure, the junior peer would be able enough to outperform bitcoin in terms of price and market capitalization.

    As of October 20, 2021, Bitcoin’s market cap was nearly $ 1.2 trillion while Ethereum’s was $ 455 billion.

    Experts believe that only Ethereum has the potential to exceed Bitcoin’s huge market cap.

    Let’s dig deeper to understand the differences between the two cryptos and explore how the prices of two cryptos may take divergent paths in the future.

    How is Ethereum different?

    Ethereum was established in 2013 and is an open source platform that helps develop and implement decentralized applications like blockchain.

    Ethereum is believed to be better off than Bitcoin due to its real world applications which can store great value. Ethereum allows the creation of new applications on its infrastructure. While bitcoin is a digital currency, Ethereum – on the other hand – is a blockchain-based network that also manages the currency of the same name.

    The Ethereum currency and the ETH blockchain complement each other and the network tends to facilitate the growth of the currency by reducing the transaction cost. In the process, the price of tokens increases.

    Relatively speaking, Ethereum can simplify global payments because it allows the creation of other applications on its decentralized infrastructure, allowing the execution of smart contracts between different parties without any intermediary.

    Bitcoin vs. Ethereum

    The price of Bitcoin on October 20, 2020 was $ 11,913, and rose to $ 56,483 on April 20, 2021. It climbed again to $ 63,995 on October 20, 2021.

    This has led to a 374% increase in the price of bitcoin in the first six months and an overall growth of 437% in the past year.

    On the other hand, Ethereum’s price on October 20, 2020 was $ 368, and rose to $ 2,332 on April 20 of this year. This has now climbed to $ 3,849 on October 20, 2021.

    This means 533% growth in the first six months of Ethereum’s price and a total growth of 946% in the past year.

    We can therefore point out that the price of bitcoin can, certainly, be way ahead of its young peer and that it still enjoys the advantage of the first player. However, circumstances may change later as the Ethereum network grows stronger, thus strengthening its currency.

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