As you might know by now, investing in bitcoin has become the hottest trend ever since bitcoin owners reported massive profits from their respective transactions. Though some tech savvy people invest in bitcoin for more than a few years now, the race to ‘mine’, own, and profit from all the existing bitcoins is still on.
However, bitcoins are hardly the only cryptocurrency known to mankind. There is another cryptocurrency that has been competing for attention for the past couple of years: Ethereum (ETH), with some claiming that it’s a better investment than Bitcoin (BTC).
Bitcoin vs. Ethereum: What’s the DIfference?
While BTC is undeniably older, both are being exchanged with the use of blockchains, a kind of digital public ledger that accounts for cryptocurrency transactions. Each blockchain is linear, chronological, and connected to a single node. This means that falsifying a blockchain can be insanely difficult. However, the similarities end there, since both are made by different programmers with very different goals in mind.
Bitcoins are designed for peer-to-peer payment system. It uses the proof-of-work model wherein users (also known as miners) are required to solve a highly complex mathematical problem first before they can add a block to the blockchain and get paid. For this reason, you can rest assure that every bitcoin transaction is legitimate regardless of whether you know the other party or not.
Ethereum, on the other hand, was designed to run smart contracts. It is meant to be more functional and flexible than bitcoin. Unlike bitcoins, ethereum encourages miners to become validators instead. While there’s no mathematical problem to solve, validators are required to put their own ETH on the line before they can certify that a block is valid. This meant that any malicious intent will be nipped at the bud since it is their personal money at stake.
Why Choose Bitcoin?
Bitcoins have become the golden standard for all cryptocurrencies – if BTC crashes, then other cryptocurrencies will undeniably follow suit. In short, you need to find where to invest in bitcoin and make your account grow. The best way to invest in bitcoin is to get in a trade exchange, though you’d need to hire an experienced broker to be successful.