The battle of dominance between Bitcoin and Ethereum has been raging for quite some time. Despite the fact that Bitcoin is the largest cryptocurrency by market capitalization, Ethereum has made a special place for itself in the crypto world. Bitcoin has added the advantage of an early invention although Ethereum has the uniqueness of wider functionalities and features. Bitcoin has weathered many storms since its inception in 2009 but remains steadfast at its leadership position. Similarly, Ethereum has also been in the market for around six years, and today, it is considered as the biggest rival to Bitcoin.
Will Bitcoin always be number one and will Ethereum always be number two? Will Ethereum ever dominate over Bitcoin? Let’s look at the facts and the predictions. The results may just have you inquiring about a Luno Ethereum wallet.
Difference and Similarity
There is a fundamental difference in the concept behind Bitcoin and Ethereum. The invention of Bitcoin was done to do away with the conventional centralized monetary system. It is promoted as an alternative to the centralized structure of the banks around the globe, and we must say, the digital coin has been successful in breaking the shackles of centralization and rigidity of the global monetary system. Ethereum, on the other hand, is promoted as a complete functionality that will allow building and the running of the applications with the help of Ethereum Virtual Machine (EVM). By knowing the basic nature of Bitcoin and Ethereum, it is quite simple now to find out their primary difference and objective.
The aim of Bitcoin is to become a global cryptocurrency, and its vision is to dominate the world economy. It aims to reduce the interference from the banks and envisages a key role for itself in the future market where the digital coin will be dominating the proceedings of industries across the globe. The objectives of Ethereum, on the other hand, are quite different as it tends to become a dominating network player on which smart contracts and various applications can be built and run. Bitcoin is to help the people transfer the money without any intervention of banks while Ethereum aims to provide a platform for such peer-to-peer contracts through the use of its own currency, Ether.
In terms of comparison, Bitcoin continues to remain the largest cryptocurrency by market capitalization; however, Ethereum is dominating when it comes to smart contracts and development of distributed applications (dApps). It will be difficult to predict which one of these is going to win the battle in the future, although it is almost certain that the fighting will go down to the wire.
Looking from a distance, it would be hard to see Bitcoin to be overtaken by any current cryptocurrency. The trading value is higher and receives more attention in the media, by investors and by novices entering the crypto trading game. However, the market for Bitcoin is capped, unlike Ethereum at present, which down the line may cause problems and give Ethereum a boost.
Things are looking bright for Ethereum in terms of the application support and platform it provides; thereby, making it a more credible option when it comes to a holistic cryptocurrency ecosystem. The specific feature related to having a whole established ecosystem is one of the core strengths of Ethereum, and it is proving immensely helpful not only to promote its cryptocurrency but also to get clients across industries. This support and added functionality are not available in case of Bitcoin, which is solely dependent on its appeal among crypto enthusiasts. The Jury is still out on whether Ethereum will be able to overtake Bitcoin in future, but one thing all experts agree is the fact that both these cryptocurrencies have strong fundamentals and wide fan following. Both are in the market for a long haul and expected to provide good return to investors.
One of the first rules of investing is diversification. This rule should apply when investing or trading crypto and backing both Bitcoin and Ethereum is a safe bet. If you are a Bitcoin fanatic, it may be worthwhile to consider Ethereum now, rather than later.