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Ethereum vs. Bitcoin

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Ethereum vs. Bitcoin ( ethereum-vs-bitcoin )

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Objectives We will explain the differences between Bitcoin and Ethereum, model the expected values of their respective currencies over the next five years, and detail what the future of each company will be. We will then reveal our investment strategy which will result in the greatest gains in five years’ time. Comparing Bitcoin and Ethereum In order to choose an investment strategy between Bitcoin and Ethereum it is important to understand the characteristics that differentiate the two cryptocurrencies. Bitcoin was first released on January 3rd, 2009 while Ethereum’s live blockchain was initially launched on July 30th, 2015. Both of these cryptocurrencies are exchanged by using blockchain technology. A blockchain is a public ledger of all transactions that have occurred. Blocks are added in a linear chronological order. The ledger is public because each node has the full blockchain so it cannot be falsified by a single entity. A node is any computer that is connected to the blockchain and used to execute and verify transactions (Investopedia, 2016). Although each uses blockchain technology they have different goals in mind, which can be seen through the coding protocols put in place. Bitcoin was designed to act as a secure peer to peer decentralized payment system. Since everything is shown on the public ledger, the blockchain, you can be confident that the transaction is legitimate and the need to trust the other party is negated. Security is Bitcoin’s first priority followed by speed. A Bitcoin transaction will show up in as little as one hour and is very secure due to the coding language used. Bitcoin uses C++ programming and has less than 70 3

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