Ethereum and bitcoin are both cryptocurrencies, and as such, they are considered to be high-risk investments. However, while Ethereum is relatively new, its scriptability and current low price and ability to mine, bring it to the forefront in the cryptocurrency battle. As Bitcoin gains more and more steam, reaching record prices in December, it becomes a more attractive prospective to investors who want to get in on the ground floor, hoping it will surpass bitcoin in value and usability. Despite their similarities, both Ethereum and Bitcoin have significant differences, and risks, which should be considered before deciding if Ethereum is a smart investment over bitcoin.
Bitcoin has reached record highs this December but has also been around much longer than Ethereum. Released in 2009, bitcoin has had a history of extreme ups and downs. An increasing amount of vendors are starting to take bitcoin as payment, but transfers are a slow process, which is inconvenient for end users. Conversely, as bitcoin becomes more accessible to investors, vendors and exchanges are taking more risks to themselves and finding ways to offer instant payments, such as the London Block Exchange’s Visa Debit Card.
Ethereum has risen over 5,000 percent in only a year and offers many significant advantages over bitcoin, such as contracting and scriptability. Transaction times with Ethereum take just seconds, and though it hasn’t picked up as of yet, Ethereum point of sales is more straightforward for vendors to implement. Ethereum can be used to run applications, and already has thebacking of major technology players like Microsoft, which enables the use of Ethereum on Microsoft Azure. However, Ethereum prices are in part tied to it’s predecessor, in the sense that If bitcoin falls and people lose faith in cryptocurrency, Ethereum will take a hit as well.
Bitcoin Vs Ethereum
Currently, it is estimated that 3/4ths of Bitcoin blocks have been mined, and are held by early investors. When Ethereum reaches five years, only half of the possible ‘coins’ will be mined, and its exposure means that it will be heldby a far more diverse group. While bitcoin is primarily a currency, Ethereum scripting allows it to be used for far more than just a payment token. Since neither cryptocurrency is regulated, investors and banks are highly sceptical of their ability to last and consider both to be in “bubble” periods, waiting to pop.
While both cryptocurrencies are going strong, Ethereum has more value than being just a token to be used for cash. This alone has the potential to enable Ethereum to reach beyond bitcoin in cost value.Further combined with its diverse ownership, ease of use by vendors, integration in applications, and scriptability, even if bitcoin crashes, while Ethereum may take a temporary hit, it is likely to survive, and at that time surpass bitcoin. Michael Novogratz, and other market experts believe that Ethereum has a higher chance of succeeding, and will likely become bitcoins successor. While it won’t be overnight, experts expect that Ethereum will indeed overtake bitcoin in the future.