As the cryptocurrency market continues to evolve, more investors are considering adding crypto to their portfolios. Two of the most popular cryptocurrencies are Bitcoin (BTC) and Ethereum (ETH). But which of the two is interesting in 2023? In this article we compare Ethereum and Bitcoin. Please note that this is not financial advice; always do your own research.
Bitcoin was the first cryptocurrency. In 2009, the hitherto unknown creator launched the network under the pseudonym Satoshi Nakamoto. It operates on a decentralized network that enables secure and transparent transactions. Bitcoin is also known for its limited supply, with only 21 million BTC that can ever be created.
Ethereum is a newer one cryptocurrency which was launched in 2015 by Vitalik Buterin, among others. It is also a decentralized network, but it differs from Bitcoin in that it is more than just a digital currency. Ethereum is a platform that allows developers to build applications on top of the blockchain using smart contractsalso known as dApps.
Transaction speed and costs
When it comes to transaction speed, Ethereum is faster than Bitcoin. Ethereum’s base tier can handle up to 15 transactions per second (tps), while Bitcoin can only handle 7 tps.
Because many people use Ethereum, the transaction costs on the network are often higher. However, layer 2 scaling solutions built on Ethereum make it possible for the network to process many more transactions for a fraction of the price.
Scalability is a critical point for both Bitcoin and Ethereum. As more people use these networks, the demand for transactions increases, which can lead to congestion and higher costs.
Ethereum is working on a solution to this problem, called Ethereum 2.0, which uses a new consensus algorithm to increase scalability. Bitcoin developers are also working on scalability solutions, such as the Lightning Network.
With Ethereum 2.0, the network no longer uses it Proof of Workprotocol, which uses miners to process and validate transactions like Bitcoin does. Recently was in it ethereum news to read that ‘The Merge’ has been carried out successfullywhich marked the start of the further development of the new network.
Due to the limited usefulness of Bitcoin, the network is mainly used as a store of value and as a means of payment. It has been compared to digital gold, and many investors see it as a hedge against inflation.
Ethereum, on the other hand, has a wider range of uses. It is the basis for much decentralized finance (DeFi) projects and is used to power dApps in various industries such as gaming and real estate.
Both Bitcoin and Ethereum have their strengths and weaknesses, and ultimately deciding which one is interesting in 2023 comes down to your own investment goals and risk tolerance. If you are looking for a cryptocurrency that mainly serves as a store of value, Bitcoin may be the most interesting option.
If you are interested in investing in a platform with a wider range of use cases, Ethereum may be of interest. The network will again undergo many developments in 2023, including the Shanghai updates.
As always, this article is not financial advice. Crypto is a risky industry as we have seen in the recent past with the collapse of ftx. In addition, crypto prices are often subject to developments in the global economy.
This article was created with the help of AI. For this article, the editor-in-chief worked closely with AI to obtain the best factual information. The editor-in-chief asked specific questions and checked the answers of the AI, supplemented them for relevance and corrected inaccuracies where necessary.