Technology

Will Ethereum overtake Bitcoin?

Will Ethereum overtake Bitcoin?

Even though Ethereum, like Bitcoin, has been around for several years, it has only just begun to gain the attention of the media and the general public. Many experts agree that it is a disruptive technology that will completely change the way the Internet works and will also revolutionize services and industries that have existed for hundreds of years.

Ether on a treadmill

Vitalik Buterin, the creator of Ethereum, is being very careful and modest with his predictions. In a recent interview, he stated that he intends to maintain Ethereum as the leading blockchain-related platform, focusing on technical issues and improving security shortly.

Balaji Srinivasan, CEO of 21. Co has recently expressed his firm belief that Ethereum will continue to exist five to ten years from now. Blockchain founder Peter Smith described Ethereum’s infrastructure applications as “fascinating” and mentioned that the platform has an excellent opportunity to review title insurance, which involves policies related to real estate, as just one example.

Overall, opinions on the future of Ethereum among cryptocurrency experts are generally positive. However, there are many old-school financial experts who, despite the extraordinary success and relative stability of both Bitcoin and Ether and the undeniable importance of the technologies behind the projects, still predict their imminent downfall.
Ether, the currency used to complete transactions on the Ethereum network (find out more), and Bitcoin has many fundamental similarities. Both are cryptocurrencies that have their roots in blockchain technology. This means that independent computers from around the world voluntarily participate in managing a list of transactions, allowing the history of each currency to be checked and confirmed.

Both are virtual currencies actively used for services, contracts, and as a store of value. Its popularity has attracted news posts and traders’ attention, hoping to understand better how blockchain technology can change the economic landscape over time. This is where most of the similarities end.

Its decentralized nature is a significant change from traditional currencies, but they are not accepted everywhere. While Bitcoin is more widely accepted and considered an international digital currency, Ether is only accepted for digital application transactions (Dapps) running on the Ethereum network.
Ethereum and Bitcoin cryptocurrencies
Critical differences between Ether and Bitcoin

Both Ether and Bitcoin are cryptocurrencies that are based on blockchain technology. Beyond that, these coins are quite different and have different uses.
Bitcoin

Bitcoin is what most people think of when they hear the words ‘blockchain’ or ‘cryptocurrency. It was the first use case for blockchain technology and reimagined what a currency could be if it weren’t tied to a specific central bank or country.

Its technology also makes it difficult to steal or tamper with, as all machines on the decentralized network must agree on the terms of any transaction. This mainly means confirming that the beneficiary is the rightful owner of the coin.

The currency can be traded on the open market, or an individual can lend computing power to the network (mining) and receive payment in Bitcoin to use their machine (harvesting or harvesting).

The maximum amount of Bitcoins produced is 21 million, which introduces scarcity to the market. To prevent Bitcoin availability from running out, halving events are incorporated into the protocol to pay fewer Bitcoins to miners after reaching a set milestone in the harvest.

Traders are usually attentive to these events as some have created volatility in the market while others have not created relevant movements in the market.
Ether

Shortly after the launch of Bitcoin, Ethereum looked at the way blockchain technology was being used and envisioned how it could be used beyond just as a currency.

Starting with Smart Contracts and Decentralized Applications (Dapps), Ethereum soon realized they needed a single currency for their platform that could be trusted according to their protocols. This prompted the Ethereum Foundation – a body that oversees Ethereum activity but cannot independently change protocols – to create Ether.

The mining process for Ether is the same as for Bitcoin, but, unlike Bitcoin, Ethereum miners can charge a fee for confirming a transaction. Also, there is no limit to the amount of Ether that can be issued. This removed the perceived scarcity that may be a factor influencing Bitcoin’s higher valuation.
Ether is the recognized currency used throughout the Ethereum network, but it is not widely accepted elsewhere. In the same vein, Bitcoin cannot be used as a recognized currency on the Ethereum platform.
Protocols

Ethereum and Bitcoin operate on separate protocols, and their processes are not related to each other. This means that some transactions that may be allowed on one platform may not be allowed on the other. This is a relevant aspect when considering permitted vs without permission.
Ethereum word cloud

Will Ethereum overtake Bitcoin?

Both Bitcoin and Ether, from Ethereum, have many factors that influence their valuations.

To speculate on the valuations of cryptocurrencies like Ether and Bitcoin, traders need to ask critical questions such as:

How is each coin used?
How widely is it accepted today? How widely accepted will it be in the future?
What can historical data tell us about this instrument?

While Bitcoin has traditionally been priced higher than Ether, it is essential to note that the cryptocurrency market has so far been very volatile and will likely remain so. Unlike stocks, commodities, or even centrally regulated currencies, the underlying value of a cryptocurrency is unclear.

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