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Will Ethereum Ever Surge Past Bitcoin?

As the oldest cryptocurrency, Bitcoin may rightfully lead the other digital assets by market capitalization. However, Ethereum takes second place as the leader of all altcoins. Furthermore, it is currently enjoying a swift surge in popularity and, subsequently, value.

Ether (ETH), Ethereum’s native token, has a market cap of over $500 billion. One unit sells for over $4,000, and some expect it to reach or even overcome Bitcoin soon. This article looks at Ethereum and its chances to take the top spot in the market cap table.

What is Bitcoin?

In January 2009, Satoshi Nakamoto introduced a peer-to-peer electronic cash system that functions securely without a central authority. It is from this idea that cryptocurrency or the concept of money without a physical form was born.

Primarily, Bitcoin is a medium of exchange and a store of value. Its role is to serve as a viable alternative to the traditional currencies used by countries.

Bitcoin has been the de facto cryptocurrency leader ever since. Furthermore, the value of all other cryptos has been evolving with it, as well. As a result, Bitcoin has been the subject of most crypto trades in the past decade.

What is Ethereum?

Ethereum is the second biggest cryptocurrency by market capitalization. Since its inception in 2015, it has been a constant rival to Bitcoin’s supremacy. Today, with a 24h trading volume of over $14 billion, it is one of the most popular cryptocurrencies.

Fundamentally, Ethereum is a decentralized computing platform for application development. In other words, it is a software platform where developers build smart contracts and decentralized apps using a programming language.

Smart contracts work so that once a specific set of predefined rules is valid, a separate output can occur. Ether is the native currency that fuels this platform and aids in application and smart contract development.

Ethereum began as an alternative to Bitcoin and its Proof-of-Work consensus mechanism. However, it had to use the exact mechanism from the beginning. Now, the upcoming upgrade to Ethereum 2.0 should see the platform embrace Proof-of-Stake as its consensus algorithm. Above all, this change should help it surge high enough to overcome Bitcoin.

What Are the Similarities between Bitcoin and Ethereum?

The significant similarity between these two cryptocurrencies is decentralization. Simply put, they are not under the control of a single central authority. Instead, the communities that support their development are the ones who decide their evolutions.

Furthermore, both Bitcoin and Ethereum operate on distributed ledger blockchains, which are inviolable and immutable. This means that other institutions cannot stop or hack them or change their transaction logs.

What Are the Differences Between Bitcoin and Ethereum?

The primary difference between Bitcoin and Ethereum is their functions. For example, Bitcoin provides people with more control over their asset transfers. Also, it gives them the anonymity that central banks cannot offer.

On the other hand, Ethereum serves more as a platform for developing different applications and currencies. It provides a native token, Ether. But it uses it more as a means of exchange and support for developing other projects.

Another significant difference between Ethereum and Bitcoin is their market values. For instance, Bitcoin rides a wave of popularity that takes its price well above $60,000. Also, it helps it keep a market cap above $1 trillion.

On the other hand, Ethereum struggles to trade above $4,000 at the time of writing. Also, its market capitalization has not exceeded $600 billion yet.

Nevertheless, it doesn’t mean that Ethereum can never overcome Bitcoin. On the contrary, Ethereum opened a significant value gap between its current status and other altcoins. From this position, it aims to attack Bitcoin’s supremacy and defeat it.

Is Ethereum better than Bitcoin?

This question doesn’t have a specific answer. As we mentioned above, Bitcoin serves more as a store of value and as a digital currency. So, if you are looking for a long-term investment, BTC is more likely to satisfy your needs.

On the other hand, Ethereum is more of a means for supporting a purpose. So, if you are a developer looking to build a decentralized application, Ether is more suitable than BTC. Of course, you can also hold ETH and gain from its value surge sometimes in the future. However, keep in mind that its value rate doesn’t increase as rapidly or significantly as Bitcoin’s price.

Ethereum is a much faster blockchain platform than Bitcoin. For instance, it can validate a new block once every 12 seconds. On the other hand, Bitcoin confirms a new block once every 10 minutes. So, if you’re looking for speed, Ethereum is a much better choice.

On the other hand, Bitcoin tends to be a more secure network than Ethereum. It has a more established structure and status in the market to defend against hackers. However, they both face scalability issues that need reliable solutions in the years to come.

Conclusion

If you are considering investing in cryptocurrencies, both Ethereum and Bitcoin represent viable solutions. Still, it depends on your investment reasons and goals. In other words, it all boils down to what you wish to obtain from it.

As we mentioned above, both can provide you with a substantial ROI in the long term. However, Bitcoin has the edge in delivering better returns. On the other hand, Ethereum is more suitable for building new apps than as a store of value. So, it can provide you with more active involvement in the crypto space.

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It will take some time before Ethereum can surge past Bitcoin. And, it will depend on how its upcoming upgrade to Ethereum 2.0 will progress. For now, we can only wait and see.

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