Ethereum is the second most popular cryptocurrency, and there is a big difference between it and Bitcoin. Ethereum is actually the name of the blockchain platform, while Ether is the name of the cryptocurrency. Ethereum is a blockchain platform that runs smart contracts.
Today we will list the advantages and disadvantages of each currency! This way, you can decide which option is best for you.
Let’s get started with Ethereum right after we’re going to the advantages and disadvantages of Bitcoin
Advantage Less crowded
If you ask any friend or family member to speak the name of a cryptocurrency there is a %90 chance that they will speak Bitcoin. This happens because of the financial media that love to publicize the highs and lows of bitcoin and very famous that only speak of this currency but there are other currencies that few speak and therefore has less competition. Vale says that many financial market professionals believe that ETH will pass the BTC.
Ethereum Advantage is the world’s safest currency according to surveys.
Ethereum, in addition to being a cryptocurrency, also has a platform capable of storing encrypted information. Because of this, it is considered one of the safest in the world!
Disadvantage some more expensive transactions
The cost of smart contracts is much more expensive. According to the Ethereum protocol, transaction fee = quantity of gas x gas price, According to the Ethereum protocol, transaction fee = quantity of gas x gas price, where the quantity of gas is determined by the complexity of the smart contract , and the gas price is determined by the initiator of the contract. What does this mean for developers and users? While reading the local blockchain is free, writing and computing are expensive, and storage is especially expensive, because any written information will be stored permanently.
Advantage Ease of contract creation
Ethereum enables the execution of smart contracts and brings revolutionary solutions beyond cryptocurrencies. Ethereum is considered by many to be an evolution of the Blockchain concept by allowing anyone to build decentralized applications for various purposes.
Smart contracts advantage
At a deeper level, Smart Contracts are virtual agreements, which dictate norms related to programming codes, encrypted through a blockchain. The term smart contract or “smart contract” can refer to any contract that is capable of being executed or enforced on its own, formalizing negotiations between two or more parties, dispensing with centralized intermediaries.
Token Creation Advantage
In Ethereum, other cryptocurrencies can be created. Using Ethereum’s own ERC-20 token standards, one can create one’s own token and program the desired characteristics of the currency, such as its security, parameters, which smart contracts are subject to. As of October 2019, more than 200,000 ERC-20 compliant tokens existed on Ethereum’s core network. The ERC-20 commands a vital importance; it defines a common list of rules that all Ethereum tokens must follow.
DeFi comes from the collective term for products and services that are accessible to anyone who can use Etherm cryptocurrency. Anyone worldwide with an internet. Decentralized finance does not depend on other people or companies instead uses intelligent blockchain contracts.
Let’s go now to Bitcoin
Bitcoin advantage is transparent
All information related to Bitcoin money supply is available for anyone to see on the blockchain. Every transaction made with Bitcoin is available for anyone to see as well. Although personal information is hidden. Take a look at our block explorer.
Technological advantage Excellent divisibility, easy sending and authentication of virtual currencies while retaining many of the benefits of money.
Advantage easy to start
Easy start Lack of complicated registration, age and any other restrictions. For starters, you don’t need anything but Internet access. You download the Bitcoin client to your computer or smartphone, it generates your wallet address. From now on, you can send and receive cryptocurrencies.
Advantage Ability to circumvent any sanctions
Ability to circumvent any sanctions Despite the high volatility resulting from the free market, fluctuations in the cryptocurrency rate may be much smaller than the drop in national currency rates in the event of political instability in the state, or even a declaration of default. There is no reliance on central banks, local and other laws, religion, politicians and other attempts to interfere and restrict their operations. Even through sanctions.
Disadvantage Volatile Market
As a matter of fact, biticoin is very volatile, we never know what its real value will be the next day. The price of biticoin changes quickly over the hours that is to say that your biticoin can either increase its value by %50 or lose %50 of its value in a few minutes a real example of this and that bitcoin has reached a maximum of US$58 thousand and the next day it dropped to US$44,000. This is one of the main reasons merchants do not want to accept cryptocurrencies as a means of payment.
“Cryptoactives are still a very small market compared to other financial assets, although it is growing a lot. So, naturally, this makes it more volatile, as less volume is needed to make a relevant rise or fall in prices”, explained Vinicius Frias, CEO of fintech crypto Alter
Disadvantage Security not very good
People who create programs for cryptocurrencies aren’t security experts and that’s too bad because more and more hackrs are appearing wanting some freebies, and those people who want their cryptocurrencies for them are developing and creating new hacking techniques every day more . Many people will already lose millions because of these hacks.
Disadvantage It takes high fees in transactions
There are people paying $26 dollars for transactions with bitcoin a very high rate if you take into account the amount that is being transferred an example and twitter. Last week a journalist said on Twitter that he paid $15 to send $100 in bitcoins from a digital wallet to a hardware wallet and soon after that had another person paid $16 to send $25 in bitcoins from one bitcoin address to another. With these fees the only people who were happy with transactions with biticoin are the miners who earn bitcoins to add transactions to the blockchain.
Transactions in biticoin can take anywhere from five minutes to an hour, depending on the bitcoin network. Here are the factors that affect the speed of bitcoin transactions: Miners fee. The higher the miner fee you choose to pay, the higher the blockchain transaction priority will also be.
“Two years ago, people thought bitcoin would solve every transaction, and I think what we’re seeing is that’s not how it’s going to happen,” Ripple CEO Brad Garlinghouse told CNBC earlier this year.
“One of the biggest problems with bitcoin right now is that so many people want to use the currency that every now and then the network gets bogged down,” Ryan Radloff, co-founder and director of CoinShares, told CNBC on Tuesday.
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