Right now, Ethereum is the most wanted coin after Bitcoin. Bitcoin proponents have always considered Bitcoin as a great and everlasting digital coin ever produced. This thinking cannot be called wrong at present. Ethereum has achieved fame quite rapidly following Bitcoin’s lead. Ethereum nowadays is the handpicked choice for most of the new investors.
The reason is that the investors have realized that they have missed the opportunity to take advantage from Bitcoin. This thinking results from the philosophy that smaller investments make bigger profits.
Bitcoin price is significantly higher than Ethereum, but in terms of profits, Ethereum has transcended Bitcoin. Looking at the performance of last year, we find that Bitcoin rose 245% while Ethereum rose 730%, which is more than double. This percentage has convinced the investors to go for Ethereum instead of Bitcoin to gain more.
If we look at different aspects, Bitcoin still wins on market capitalization by a long margin. Bitcoin possesses a 1 trillion dollars market cap. But if power and money dynamics are taken out, then Ethereum has the upper hand.
Head to head comparison
When we compare Ethereum with Bitcoin, we find some major differences between them. The Bitcoin blockchain is essentially a database of accounts or a ledger, while Ethereum, on the other hand, is sophisticated. But sophistication provides it more advantages. Ethereum provides those features which Bitcoin is not able to provide, such as the ability to store computer codes.
Smart contracts, for example. It is an agreement written in computer codes. A smart contract executes only when the pre-set conditions are fulfilled by both parties. It results in hassle-free and faster transactions, which means no more network congestions.
Another important usage of the Ethereum blockchain is DeFi. It means other currencies and applications can also be built on the Ethereum network. In other words, this blockchain is multi-functional, so it can perform other than primary functions as well.
ETH expected to launch an updated version
Ethereum is planning to launch Ethereum 2.0, which will be a serious threat for Bitcoin as it can destabilize the master coin. Its new technology is built to save 90% power consumption while mining. Countries are looking forward to environment-friendly crypto mining. Some countries are already facing power shortages for mining, such as Kazakhstan.
So far, Bitcoin mining is the most energy-consuming activity in the world, which makes it a heavy greenhouse gases emitting sector. So it can be concluded that Ethereum is the coin of the future because it is more advanced, faster, and eco-friendly.