What are the advantages of Ethereum over Bitcoin ?
Ethereum is the second biggest cryptocurrency by market capitalisation. Unlike Bitcoin, Ethereum is a programmable digital currency. It’s faster and more flexible than Bitcoin. Since the beginning of the crypto wave, the consensus choice has been Bitcoin, which has been at the top of market capitalisation charts from the earliest days. That may not last long though, since there seem to be other overpowering cryptocurrencies.
Implementation of the Ethereum Virtual Machine(EVM) has proved to be a worthy challenger to bitcoin’s dominance and has also made Ethereum a viable platform. The EVM is an execution environment that runs on all network nodes that facilitate intelligent contracts. It’s intelligent contracts like these that make Ethereum’s blockchain a global computational device rather than a mere financial system. Investors like Mark Cuban love Ethereum because it runs on self-executing contracts. The coded contracts execute themselves whenever certain conditions are met.
Another reason for Ethereum’s growing rise is that its intelligent contracts drive non-fungible tokens (NFTs). Sales of NFTs have been on the roar this year, NFTs are digital collectables, and they give digital artists and other creators a way to profit from their artwork. The smart contracts in NFTs contain royalty information and copyright.
Ethereum is a programmable blockchain, so other currencies and applications can be built on its network. It means you no longer need a bank account to borrow, lend, or earn interest on your money.
Eth 2 is a long-awaited upgrade to Ethereum that’s being rolled out in phases. It promises to make Ethereum more secure, more scalable, and more environmentally friendly. The hope is that the move to a more sustainable model of mining will happen this year.
The first-mover-advantage argument works both ways. While BTC is the first cryptocurrency, ETH is the first cryptocurrency to gain widespread adoption in the fast-growing and still emerging area of DeFi, where Ethereum is the default blockchain and clear market leader. It also has the highest market share in the fast-growing NFT space.
In terms of competition, Bitcoin is still unmatched, while Ethereum has competitors that have gained traction and momentum thanks to their efficiency and easy-to-use systems.
Competition aside, when it comes to Bitcoin vs. Ethereum, it seems that the latter has the greatest long-term appreciation potential. If BTC is truly considered to be digital gold, investors should be reminded that gold routinely underperforms stocks. And unlike gold, Bitcoin has no utility aside from its acceptance as a store of value and vehicle for speculation.
Ethereum still has room to grow. We’re only just beginning to see the business applications of smart contracts and DeFi. Eth 2 will help the platform to meet increasing demand and move to a more sustainable mining model.
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