Ethereum vs. Bitcoin

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Ethereum vs. Bitcoin ( ethereum-vs-bitcoin )

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Another difference will be the method of reward. Instead of rewarding miners for creating blocks validators will earn a transaction fee for each transaction and smart contract they validate. This will be much more energy efficient and will put a focus on bandwidth rather than hashrate (number of calculations per second). It will also help to put focus on collaboration rather than competition because the faster everyone can reach consensus (which is necessary to complete a block) the more transactions they’ll be able to complete, resulting in higher profits (Janin, Ethereum For Investors Part II, 2015). The parties that want the transaction or smart contract executed will also pay a fee (called the gas price) in order to have it completed and added to the blockchain. In summary, there are many differences that make Bitcoin and Ethereum distinct from one another. We do not believe that they have an inverse relationship, meaning when one increases in value, the other decreases; they can coexist as they are working towards different goals. Bitcoin is striving to provide fast and secure transactions while Ethereum is focusing on much more. As more and more smart contracts and decentralized applications are built Ethereum’s popularity and profitability will increase. Although both are volatile at this point, ether is so new that it is difficult to predict where it will go. We believe that both of these cryptocurrencies have benefits and will see an increase in value going forward. The Future of Bitcoin and Ether As we look to the future, we expect Bitcoin to continue to make strides to become an accepted currency worldwide. According to Coinbase, one of the largest Bitcoin exchanges, around 20 percent of activity on its network was payment related rather than speculative 6

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