Bitcoin vs Ethereum: What Sets BTC apart from ETH Crypto?

WHAT IS BITCOIN?

Bitcoin is the first of the many digital cryptos we see today. It is a decentralised digital asset that was originally described in a whitepaper in 2008 by a person or a group of people under the alias name of Satoshi Nakamoto. It was in 2009 that the Bitcoin crypto was finally launched. 

Bitcoin is a peer-to-peer (P2P) online currency where transactions can take place directly between two equal and independent participants of the network without the intervention of any third party. In Nakamoto’s words, Bitcoin was created to facilitate online payments between two parties without going through the lengthy and gruesome process via a financial institution. 

The price of 1 bitcoin today is just shy of $23,000 (August 2, 2022) and it is the world’s largest crypto by market capitalization today. 

The unique features of Bitcoin (BTC) are: 

• It is the first-ever crypto to appear in the market
• It has created a conceptual as well as technological shift leading to the development of thousands of similar projects.
• Bitcoin pioneered the idea of money being sent and received across the globe without going through intermediaries such as banks and other financial institutions.

WHAT IS ETHEREUM?

Ethereum, the second-largest crypto by market capitalization, is an open-source blockchain system that has its own native crypto called Ether. Ethereum (ETH) works as a crypto platform for several other cryptos and helps in the execution of Decentralised Smart Contracts. 

Vitalik Buterin, the founder of Ethereum crypto described Ethereum in 2013 on a white paper along with his co-founder and secured funding for the same in a public crowd sale in 2014. The official launch date of the Ethereum blockchain was July 30, 2015. It has undergone several updates since its launch, the recent being the London Hard Fork update. 

The primary goal of Ethereum is to become the global platform for decentralised applications (Ethereum Dapps) that would allow the programmers and coders across the globe to run and write software that are censorship, fraud, and downtime free. It was the pioneer of the frequently used term today in the blockchain space, smart contracts. The principal innovation of Ethereum was designed to allow the execution of smart contracts via blockchain. As described by the co-founder, Gavin Wood, Ethereum was designed to become “one computer for the entire planet”. 

It is now in the process of shifting from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism. Heralded as Ethereum 2.0, it will happen through what is called as Ethereum Merge, where the PoS enabled Beacon Chain will merge with the mainnet.

The Ethereum blockchain is capable of hosting other cryptos called “tokens” through its ERC-20 standard. This in fact is the most common use for the platform. Ethereum coin price started at $3 while Ethereum price today stands around $1600 as of writing this. This rise in price has been in a span of only six years. 

The unique features of the Ethereum crypto are:

• Ethereum is the pioneer of the smart contract concept.
• Ethereum blockchain is able to host various other cryptos using its ERC-20 standard.
• Ethereum’s latest update, London Hard Fork was implemented to reduce the high transaction fees and enhance its scalability.

Additional Read: Ethereum Merge Update

Ethereum’s Merge – which is set to transition the Ethereum blockchain from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism. This move is intended to create a more energy efficient ETH network that has greater scalability capabilities too.

According to official sources, this move is expected to come by as soon as by the middle or end of September, 2022.

Merge scheduled for mid to late September https://t.co/r9SsxeEIV5 pic.twitter.com/z2nZttCvZ2

— Evan Van Ness 🦇🔊 (@evan_van_ness) July 14, 2022

 

Bitcoin(BTC) vs Ethereum(ETH): What’s the Difference

Comparison Basis	Bitcoin (BTC)	Ethereum (ETH)
Launch date	2009	2015
Founders	Satoshi Nakamoto	Vitalik Buterin and Gavin Wood
Blockchain protocol	Bitcoin Blockchain	Ethereum Blockchain
Token type	Native	Native
Use case	The first crypto, mainly used as a digital asset today.	To host various cryptos and other decentralised applications (DApps)
Market Cap*	$437,336,340,330	$193,542,020,978
Circulating Supply**	19,110,062.00 BTC	121,796,996.56 ETH
Consensus method	Proof-of-work (PoW)	PoW but soon to move to Proof-of-stake (PoS)

MarketCap* and Circulation Supply** as of August 2022

Source: CoinMarketCap

BTC VS ETH – TECHNICAL ANALYSIS

Source: Trading View

If we put Bitcoin vs Ethereum, head to head – both Ethereum prices and Bitcoin prices have moved more or less in a similar fashion, ever since the beginning of 2022. Ethereum prices, being the smaller token of the two tokens by market capitalization has suffered slightly more in percentage terms. Since the beginning of the year, BTC prices have shed over 52% while ETH prices have lost over 58% in the same period. 

However, from that technical standpoint, both these tokens are very attractive with Bitcoin being regarded as the only true ‘decentralised’ blockchain network while Ethereum being the biggest smart contract platform, which is soon moving to the energy efficient proof-of-stake system of consensus. Thus both share multiple benefits and are worthy to be in any crypto portfolio.

BITCOIN PRICE PREDICTION

Predicting how far a crypto can go up is difficult, because there are various factors that play into it. However, from a technical point of view, one can break it down into achievable targets.

For Bitcoin prices, its upward journey would be marred with obstacles. Two of the main obstacles, or rather regions of resistance investors would need to look out for are between $28,000-$32,000 and if that is crossed, then between $36,000-$45,000. These two would serve as wide accumulation zones where Bitcoin prices would typically spend a lot of time before breaking out – if all other things go well. 

The first resistance zone could take in a couple of months to cross, maybe even a quarter, looking at the sluggish recovery we are seeing now. But the next zone could at least take half a year to cross. So by rough estimates, by the end of three to four quarters, BTC prices could be around $45,000 if all goes well.

Additional Read: Bitcoin Price Prediction Weekly

ETHEREUM PRICE PREDICTION

In case of Ethereum too, there are two critical resistance zones it will need to cover before it can attain its old all-time highs. The first zone would be between $1750-$2100 while the second zone would be $2400-$2650. The first zone, which Ethereum had almost broken into just a couple of days ago but couldn’t sustain within it. 

This first zone would be the tougher one to beat for bulls in the market. It could take a quarter or two for ETH prices to beat this. Finally if it is able to then the next zone can be covered within a month on two, on the back of heavy short covering by short sellers in the market and thus provide the necessary trigger for sustained bullish momentum till a whole year from now to reach around $2700 levels.

Additional Read: Ethereum Price Prediction Weekly

PROS AND CONS OF BITCOIN & ETHEREUM

PROS

BITCOIN PROS	ETHEREUM PROS
It has good accessibility and liquidity	It is easier to mine than Bitcoin
Provides complete user anonymity and transparency	Ethereum has a biggest developer support
Total independence from a central authority	It is smart contract capable
Has a high return potential	Ethereum has one of the biggest and most loyal community

CONS

BITCOIN CONS	ETHEREUM CONS
It has extreme volatility	Extremely high transaction costs due to gas fees
No government regulations, thus under constant risk	No limit to the number of token available – unlike almost every other crypto out there
Irreversible – transactions are completely irreversible so hacks and illegal activities can’t be reversed	Hub centralisation issues – but that might be done away with with the ETH 2.0
Limited use – thanks to its high costs	–

BTC vs ETH: Which is a better buy? 

Both Bitcoin (BTC) and Ethereum (ETH) have been on a roller coaster ride for the year 2021. Although the current Bitcoin price is lower than its  ATH for 2021, it has still grown by 300% in the entire year. The growth rate for Ethereum has also been marvellous with a rise in prices by 900% despite the massive downturn both these top cryptos have suffered. 

Bitcoin is the OG (original gangster) of the crypto space. It is also the most recognized crypto of the lot. For any crypto to succeed in the long run, its widespread recognition and the services it renders play a key role. Bitcoin, being the leader in this space has more than 15000 companies accepting it as a mode payment. Although the developer behind this extraordinary digital currency is still unknown it definitely gave rise to the new financial revolution we are a part of today. 

Many investors who have been holding their bitcoins for so long and are known as the Bitcoin whales, often regard this crypto as a digital asset rather than currency. Bitcoin is also considered as the “Digital Gold” by many investors. Many experts even consider Bitcoin as a deflationary currency, which means that the value of this asset shall only increase over the span of time. This gives Bitcoin an advantage over Fiat currencies that are subject to inflation. Although the crypto space is very lucrative, the only disadvantage is it is volatile. Every investment instrument is prone to volatility, however, the crypto space as believed by experts is more volatile given to its unregulated nature. 

Ethereum on the other hand is the second in a row to Bitcoin both in terms of technological revolution and market cap. Ethereum blockchain has its own native token called Ether (ETH). There are a variety of projects that can be hosted on Ethereum using its ERC-20 standard. Decentralised finance (DeFi) and non-fungible tokens (NFTs) also use Ethereum blockchain as their platform. It lets developers across the globe create and run their own blockchain applications. Various ERC-20 tokens such as MATIC, DOT, etc have been creating history in the blockchain space. 

Ethereum works on smart contracts, digital agreements with conditions inscribed using lines of code. The smart contract has been revolutionising various industries that have naturally given an added bonus over its competitors. Ethereum has undergone various updates in the past years with the latest update being the Ethereum London Hard Fork Upgrade and the Altair upgrade. Ethereum, just like Bitcoin would use a proof-of-work mechanism, however, has been in a constant endeavour to switch to a proof-of-stake mechanism. This mechanism will enhance its scalability and also reduce the high transaction fees required on the Ethereum network. 

Both Bitcoin and Ethereum have their own advantages. It is completely on the investor’s preference and risk appetite to invest in these cryptos. We always recommend DYOR (do your own research) before investing in any crypto as they are all subjected to market risks. If you are wondering how to invest in Bitcoin or how to buy Ethereum, we have got you covered.

How to Invest in Bitcoin and Ethereum 

Investing in crypto is super simple, safe, and secured with CoinDCX app. It doesn’t matter whether you want to buy bitcoin or wish to trade ethereum price today, we have got you covered. 

Here are the 3 simple steps to buy your first BTC or ETH with CoinDCX. 

1. Sign up on CoinDCX

2. Link your bank details

3. Buy Bitcoin (BTC) or Buy Ethereum (ETH)