Bitcoin versus Ethereum? Is it possible that bitcoin, when compared to Ethereum, may prove to be a little overvalued in the long run?. Until recently, the terms cryptocurrency and bitcoin were interchangeable. With Ethereum’s price and volume skyrocketing, bitcoin’s throne may be jeopardized. Let us investigate the possibilities of such an event.
In the crypto realm, Bitcoin is without a doubt the oldest and most popular digital currency, followed by Ethereum. The junior peer is thought to be capable of surpassing bitcoin in price and market capitalization. Because of certain noteworthy differences in its technological infrastructure.
On October 20, 2021, bitcoin had a market capitalization of almost $1.2 trillion. While Ethereum has a $455 billion market capitalization.
Experts believe that only Ethereum has the potential to surpass bitcoin’s massive market capitalization.
Let’s take a closer look at the differences between the two cryptocurrencies and see how their prices can diverge in the future.
How is Ethereum different?
Ethereum, an open-source blockchain network, uses Ether as its native currency. Ethereum developed in 2013 by Vitalik Buterin, a Russian-Canadian programmer, and a group of other crypto entrepreneurs. Many of the folks behind Ethereum had previously worked in the bitcoin community.
Bitcoin’s usefulness too limited for Buterin. He compared it to a pocket calculator that “does one thing well.” Whereas Ethereum is more like a smartphone with several programs you can use, he said in an interview with Business Insider.
Ethereum’s primary idea is this. It’s based on blockchain technology, which is essentially a distributed computer network. That records all cryptocurrency transactions, just like bitcoin. People can build apps on top of Ethereum, unlike bitcoin.
Like blockchain, Ethereum is an open source platform that, like blockchain. Also aids in the development and implementation of decentralized applications.
Because of its real-world uses that can store significant value, Ethereum is thought to be a better bet than bitcoin. Ethereum’s infrastructure allows for the building of new apps. While bitcoin is a digital currency, Ethereum is a blockchain-based network that also operates the same-named cryptocurrency.
The Ethereum currency and the ETH blockchain are complementary. And the network tends to favor currency growth by lowering transaction costs. The price of tokens grows as a result of this process.
In a nutshell, Ethereum can ease global payments. Because it allows other apps to built on top of its decentralized infrastructure. Allowing smart contracts to executed between diverse parties. Without the use of any intermediaries.
Ethereum and Bitcoin
On October 20, 2020, the price of bitcoin was $11,913, and on April 20, 2021, it was $56,483. This will increased to $63,995 on October 20, 2021.
This resulted in a 374 percent increase in bitcoin’s price in the first six months. And a 437 percent increase over the previous year
On the other hand, the price of Ethereum was $368 on October 20, 2020. And it soared to $2,332 on April 20 of this year. This will increase to $3,849 on October 20, 2021.
This translates to a 533 percent increase in Ethereum’s price in the first six months. And a total increase of 946 percent in the last year.
As a result, we can state unequivocally that bitcoin’s price is far ahead of its younger counterpart. And it still has the first mover’s advantage. However, as the Ethereum network grows stronger. The situation may alter in the future, bolstering the currency’s value.