Cryptocurrencies are the sizzling aspect of a mainstream marketplace at the instance. Both bitcoin and ethereum are the leading cryptocurrencies. However, bitcoin is way ahead of ethereum in terms of store value and market cap as the market cap of ethereum is not half as of bitcoin.
Undeniably bitcoin has a much higher store value and market cap, but the comprehensive applications of ethereum are huge. You are familiar with the fact that the Ethereum blockchain is the foundation of decentralized finance as most of the decentralized organizations use this blockchain only.
As per few rich sources, ethereum has the potential of overtaking bitcoin. However, according to the owner of trustable exchanges and co-founder of bitcoin mining plants, ethereum might have robust application in the financial segment, but it cannot possibly overtake bitcoin.
The profit potential of bitcoin is much more as of ethereum. You can check websites like this trading system to make your bitcoin trading venture more profitable. Let’s; find out whether ethereum has the potential of overtaking bitcoin or not.
Differences between ethereum and bitcoin!
As mentioned ahead, both ethereum and bitcoin are the top cryptocurrencies of the crypto market. However, there are significant differences between bitcoin and ethereum. For example, Ethereum is a blockchain-based model with ether as the token, whereas bitcoin is a currency with peer-to-peer networks and blockchain.
Satoshi Nakamoto released bitcoin in 2009, whereas Vitalik Buterin invented ethereum in 2014 and released it in 2015. The market cap of ethereum nears $400 billion, whereas bitcoin’s market cap nears $800 billion, despite a cryptocurrency crash. The fact might amaze you that there are only 21 million bitcoin units, but ethereum has an infinite limit.
Technical differences between ethereum and bitcoin
Both ethereum and bitcoin use different hash functions. Bitcoin uses the most popular securing hash algorithm, 256, which falls under the category of SHA250. Several online payment methods use SHA256 to encrypt transactions.
SHA256 is a one-way hash function and can convert any message into the hash function of 256 bit. Ethereum, on the other hand, uses ET Hash. So far, only ethereum is famous for using this hash function. The Bitcoin complex processes seven transactions per second, whereas the Ethereum complex can process 24 transactions per second.
Undeniably, many bitcoin hard forks put the best foot forward to increase the potential of increasing transaction rate, but none of them were successful. The issuance rate of new tokens in ethereum is 2 seconds, whereas the issuance rate in the bitcoin complex is 10 minutes. Issuance rate refers to the time a miner acquires for mining new blocks.
Both bitcoin and ethereum underlie the proof of work network. According to proof of work, a miner has to solve a math puzzle to get the block reward. Proof of work necessitates a solution of the math puzzle only to prove the involvement of computing capital.
Can ethereum take over bitcoin?
Undeniably ethereum is a significant cryptocurrency, but no ethereum cannot possibly take over bitcoin. The prominent reason behind this is that bitcoin is a much higher institutional adoption in contrast to ethereum.
Several organizations and multinational companies are accepting bitcoin payments. All the more, there are companies like micro strategy, tesla motors, square, and galaxy trading that have invested billions of dollars in bitcoin. Moreover, the supply of bitcoin is finite, which means the supply of bitcoin will end one day.
Bitcoin miners have already mined 90% of bitcoin’s supply, and bitcoin miners will be able to mine the last bitcoin ever in 2140. Bitcoin halving is also declining the supply of bitcoin units by half amount roughly after four years. In a nutshell, the scarcity of bitcoin in contrast to ethereum is much more, which is why the store value of bitcoin is constantly increasing.
You are familiar with the fact that bitcoin was the first-ever cryptocurrency. Almost every cryptocurrency has a basic concept of bitcoin, ethereum as well. Every other cryptocurrency like ethereum follows the price trail of bitcoin. In a nutshell, if bitcoin inclines, ethereum inclines, if bitcoin declines, ethereum also declines.
In a nutshell, ethereum cannot possibly take over bitcoin in the upcoming years.