16% of U.S. citizens in 2021 have invested or traded cryptocurrency, up 15% from 2015 as shared by a Pew Research study.
Have you been involved in the major growth of the cryptocurrency market over the past 6 years?
Even if you’ve invested in crypto, you may still not be able to explain the ethereum vs. bitcoin difference. These products within the crypto world vary greatly in their goals, purpose, and investing power. We’re here to share a quick guide so you can make a better investment decision for your portfolio.
Continue reading to find out what the differences are between these two market stakeholders.
The Quick Bitcoin Guide
The $1 trillion bitcoin market cap comprises a huge part of the cryptocurrency market cap at $2.5 trillion. Bitcoin remains the mainstream cryptocurrency, available since 2009. Its lifespan has seen enormous price growth per coin and major volatility.
Bitcoin is a decentralized, digital currency that exists outside of traditional banking structures. There is a finite amount of bitcoin with only 21 million available to be mined. As a scarce resource, bitcoin continues to soar in popularity as investors and common shoppers using Byte Federal want a piece of the gold-like currency.
Bitcoin is attractive for being decentralized as well as a stable investment. An investor’s portion of bitcoin has the potential to grow and its history represents how life-changing that growth can be.
An Ethereum Guide
Many people want to compare ethereum vs. bitcoin, though that comparison doesn’t quite fit. Bitcoin is a currency. Ethereum is a decentralized network where many cryptocurrencies are developed.
The cryptocurrency “ether” does exist on the ethereum network which is also commonly referred to as ethereum. Ether’s value continues to rise and the ethereum network eases that process by reducing transaction costs. The market cap exists at a significant $455 billion, making it the second-largest currency in the crypto market.
Ethereum has potential to change payment structures for years to come because it functions as a platform. It also acts as an infinite resource as possibilities for growth rely on developers and large ownership stakes.
Ethereum vs. Bitcoin and the Investor’s Decision
Ethereum vs. bitcoin is a conversation that comes down to goals.
Ethereum functions as a blockchain-based network that uses its coin, ether, to operate. The network has the potential to transform traditional payment experiences, such as mortgages. Bitcoin is a decentralized currency that has mainstream popularity and a long history of price increases.
Investors must decide investing goals and what most aligns with them. Yet either one is here to stay and change how we invest and transact in the future.
Choose Your Crypto Wisely
Both bitcoin and ethereum should be considered by investors who want to continue transforming with the market. Ethereum vs. bitcoin comes down to what most interests someone. You decide whether that’s a network where products are issued or single currency with huge market cap.
Want to continue increasing your financial knowledge? Check out our other blog posts so you can always be one step ahead in the crypto age.