If you are new to cryptocurrency, you are going to be slightly confused when you hear people talking about bitcoin and ether. Indeed, they can sound like they are the same thing and perhaps just a different name.
While there are similarities between the two digital currencies, there are also a lot of differences. Knowing all about bitcoin and ether is going to be advantageous if you want to invest in cryptocurrency. So, let’s take a look at everything you need to know about bitcoin and ether.
What is Bitcoin?
If there is one type of cryptocurrency that everyone has heard about it is bitcoin. It was first launched back in 2009 and by Satoshi Nakamoto. The purpose of its release was to create an online currency. This was one that did not have a central authority and no government was involved in its making. Over the years, it has grown in popularity. It was not the first type of cryptocurrency that was created. But, it has certainly been the one that is most successful and made people interested in crypto.
What is Ether?
Ether is a type of cryptocurrency that has emerged from the Ethereum network. It is very popular and one of the most sought-after cryptocurrencies. It was first created in 2015 and the Ethereum platform is regarded as now one of the biggest open-ended platforms you can use for cryptocurrency. It is also for decentralized applications, which is referred to as dapps. They can be built here and run and nobody is able to interfere with them.
The Similarities Between Bitcoin and Ether
Of course, there are some obvious similarities between bitcoin and ether. Namely, they are both digital currencies that have been created and they come under the umbrella term of cryptocurrency. You can trade them with other people online via an exchange. There are platforms where you can do this. They are also stored in a crypto wallet. They are both decentralized too, which means there is no bank or authority that regulates them. This makes crypto appealing to a lot of people.
The Differences Between Bitcoin and Ether
One of the main differences between bitcoin and ether is what their overall aim is and why they were created. For instance, the purpose of bitcoin was to be a digital currency that was an alternative to a government controlled national currency. However, the Ethereum network wanted to serve as a way to make applications and small contracts using its own digital currency.
Another difference between the two types of cryptocurrency is the speed of transactions. Namely, Ethereum is faster. This platform is able to process 10 to 15 transactions every second. This is compared to bitcoin that only processes three to five transactions per second.
But, there is somewhere that bitcoin beats ether and this is when it comes to price stability. It is found that it has about four times higher market capitalization. In other words, Bitcoin is less rocky than its price action.
To Summarize
So, to answer the question; is bitcoin different from ether? The answer is yes. While they are both decentralized types of cryptocurrency, they both have different aims and they were created for different reasons. While Bitcoin was created as a digital currency, ether was actually established for dapps and contracts. There are a few other differences between the two types of cryptocurrency, which include the speed and how stable they are. But, both can offer a good investment if you learn all about cryptocurrency. You can explore for yourself the better one for you.