Comparison between Bitcoin and Ethereum

eBitcoin and Ethereum are the top two cryptocurrencies in the world on the basis of various metrics. These metrics include trading volumes, unique wallet addresses, market capitalization, and circulation. Bitcoin however is an older and larger cryptocurrency than Ethereum, since it was rolled out in 2009 by Satoshi Nakamoto. Ethereum went live in 2015 through an attempt made by a developer called Vitalik Buterin. Let us explore some of the most common contrasting features of the two. 

Differences Between Bitcoin and Ethereum

Technical specifications

The differences in technical specifications between Bitcoin and Ethereum are noteworthy. Bitcoin is the digital equivalent of gold that is used for storing value. Ethereum, on the other hand, primarily uses the Ethereum network and other applications. 

Energy Consumption and Crypto Supply

The energy consumption rate of Bitcoin is 3.2 million households which is very high. The energy consumption rate of Ethereum is much lower and is only 1.2 million households. Ethereum has infinite supply while Bitcoin is limited to 21 million and is hence finite.

Smart Contracts

Bitcoin and Ethereum both rely upon smart contracts. However, Ethereum smart contracts are more flexible and complete. Bitcoin smart contracts do not have all the functionality that a programming language will have. Ethereum smart contracts execute only when it fulfils relevant terms and conditions.

Scalability

Bitcoin and Ethereum are different in terms of scalability issues. Bitcoin is responsible for handling seven transactions per second while the Ethereum network can handle 30 transactions per second. However, the similarity between the two is that transaction fees increase when demand for block space increases considerably.

Structure and Rewards

Bitcoin and Ethereum have been different since their inception. The structure of Bitcoin is simple and robust. The structure of Ethereum is feature-rich and complicated. The rewards of Bitcoin include 6.25 BTC on successfully adding a new block to the network. Ethereum on the other hand, has the same extra rewards for successfully adding new blocks in the network. 

Prospects of Bitcoin and Ethereum

Bitcoin and Ethereum have different features and therefore have varying prospects. Bitcoin has made headlines many times this year after the Bitcoin ETF was approved by the SEC. These developments have led to a rise in Bitcoin prices. Consequently, there is a high probability that investors and users will gain trust and confidence. It will also help in the Bitcoin bandwagon and will increase the reputation of the company.

Ethereum is the leader in most sectors of the blockchain world and has implicit support from most federal regulators. The regulatory concerns of Ethereum are related to staking activity on the proof-of-stake blockchain. At the end of 2024, Ethereum may gain momentum and will continue to be the fastest-growing altcoin in 2024. There is a possibility that Ethereum will gain substantially more users because of mass adoption. 

Also Read-Priority of Data Privacy and Security In Blockchain Technology

Bottom Line

Bitcoin and Ethereum have been dominating the cryptocurrency market for a fairly long time. There are clear signs that despite the numerous differences, both are gaining a substantial amount of credibility from the masses. The recent developments indicate that Bitcoin is gaining notably after ETF approval. Stronger regulations and wider government acceptance of these two currencies can fundamentally transform the financial sector and make cryptos more mainstream.