Cryptocurrencies are springing up all over the place. At last count, there were 100+ digital currencies listed in the marketplace with more in the wings. Spearheading the digital currency rankings are Bitcoin and Ethereum. While all cryptocurrencies run on blockchain technology, and are created by complex mathematical programs known as algorithms, they are unique. Before we delve into the intricacies of Ethereum and Bitcoin, it’s important to understand a few fundamentals:
Bitcoin - Bitcoin goes by the ticker BTC. It is the world’s most traded and highly capitalized digital currency. Bitcoin has an ever-expanding market capitalization that is hovering around $200 billion. There are currently 16,806,087 Bitcoin circulating, with a maximum supply of 21 million Bitcoin. Towards the end of 2017, Bitcoin was trading well above $17,000, and growing at a rate of knots. Bitcoin is the world’s first cryptocurrency created by an enigmatic individual, group of people, or AI construct known as Satoshi Nakamoto. It runs on decentralized blockchain technology that processes transactions rather slowly. On August 1, 2017, Bitcoin split up into Bitcoin and Bitcoin Cash after a hard fork and the SegWit2x change.
Ethereum – Ethereum runs on a completely different blockchain network. It is considered the superior version of Bitcoin, although it is not Bitcoin in any way shape or form. Ethereum currently has a market capitalization of around $106 billion, although this too is changing at an unprecedented rate. There are some 97,017,648 Ethereum digital units in circulation. The ticker is denoted by ETH.
But What is Bitcoin, and What is Ethereum?
Bitcoin was created in 2009 when a white paper was released by Satoshi Nakamoto. This ground-breaking concept promised a decentralized online payment system with lower transaction fees than traditional banking methods. The way this mechanism works is through private keys and public keys available on a peer to peer blockchain ledger. Various government authorities and regulators have adopted virtual currency in increasing numbers over the years.
Today, Bitcoin blockchain technology operates alongside traditional financial systems. Bitcoin is the digital currency available through the Bitcoin blockchain. Many industries seek out blockchain technology and the highly evolved transmission mechanisms it encompasses. It is based on cryptographic code, which is tamper-proof, and easily accessed by all participants on the blockchain network.
Ethereum by contrast was launched recently (in 2015). It is also based on open-ended software. Ethereum smart contracts allow for automatic executions of deals. Ethereum runs on decentralized blockchain technology, and it is also a unique programming language. The cryptographic token used by this platform is Ether. In 2014, Ether was made available through an ICO. It has multiple applications as a cryptocurrency and to monetize work orders. Both of these digital currencies use cryptography, but they are technically different.
Ethereum runs on Turning complete, while the language that determines Bitcoin’s blockchain is stack based. Ethereum can also confirm transactions within seconds, while Bitcoin transactions take several minutes to complete. Their purposes and applications are also different. Ethereum is not used primarily for payment purposes, while Bitcoin is. Ethereum’s primary function is distributed applications, otherwise known as DApps. To this end, the Enterprise Ethereum Alliance (EEA) serves as a central hub for top-listed Fortune 500 companies, start-up enterprises and tech vendors on the Ethereum network.
The Latest Developments with Bitcoin and Ethereum
Midway through January 2018 the cryptocurrency markets underwent a massive correction. Bitcoin and Ethereum shed over 16.5% on January 16, 2018 alone, as numerous factors weighed on speculator sentiment. Several issues including South Korea mulling regulation of the cryptocurrency market, China’s decision to cut power to cryptocurrency brokerages and mining platforms, and the removal of South Korean pricing from Coin Market Cap helped to drive down prices. However, the market capitalization of cryptocurrency markets is hovering around $574 billion, with some 1,450 cryptocurrencies across 7,507 markets. Bitcoin and Ethereum account for 34.9% and 18.57% of the total cryptocurrency market respectively. With these 2 digital currencies alone accounting for over 53% of all cryptocurrency trades, it makes sense why speculators, traders and investors are so heavily focused on BTC and ETH.
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