Why Ethereum is preferred to Bitcoin
When Ethereum appeared in 2015, it infringed upon the domain of Bitcoin that was founded in 2008. The investors and traders often have to choose between these cryptocurrencies. Bitcoin users often migrate to Ethereum when some problems occur.
One can’t say that both currencies have clearly defined spheres of operations. Their functions and markets overlap. Each currency has its own ecosystem. Some people are just confused and do not know, which currency is better. Many people prefer Ethereum and here is why they think so:
- Ethereum uses technologically advanced platform
Bitcoin was the first major cryptocurrency that is widely known. Ethereum is young crypto but it was developed on technologically advanced platform that allows creation of decentralized applications. Bitcoin technology lacks this freedom.
- Ethereum has a bigger coin supply cap
Ethereum has more coins available thanks to its young age. Compare the coin supply cup of BTC — 21 million coins and ETH 92 million coins in circulation. Besides, Ethereum does not have a fixed maximum supply in comparison with all other cryptocurrencies.
- Ethereum specializes on smart contracts
Though smart contracts can be used in bitcoins as well, it is much simpler to use Ethereum as this functionality was included to this cryptocurrency on a basic level.
Blockchain technology can be used for creation of different projects.
- Ethereum provides faster transactions
The block time of Ethereum is 14–15 seconds, while the block time of Bitcoin is 10 minutes. As a result, Ethereum has faster transaction time that is implemented due to Ghost protocol.
- Ethereum value grows fast
Though both cryptocurrencies increase value of coins, the gain is higher in Ethereum. The currencies are connected and depend upon each other. Fall of Bitcoin value, increases the value of Ethereum and on the contrary, with decline of Ethereum, value of Bitcoin grows.
