To the Moon! What’s the Difference Between Bitcoin and Ethereum?

Recent surges in the price of Ethereum have caused cryptocurrency traders on both sides of the Bitcoin vs Ethereum debate to question whether or not Ethereum may overtake Bitcoin as the most dominant cryptocurrency. In recent months the price of Ethereum has surpassed 30% of Bitcoin’s market cap at approximately $5 billion. And that’s quite the feat, considering Bitcoin had a six and a half year head start.

All the recent press surrounding Ethereum has many people wondering; what’s the difference between Bitcoin and Ethereum? The purpose of this article is to explore the key differences between Ethereum and Bitcoin –and what makes Ethereum special.

The Difference Between Bitcoin and Ethereum

Before investing into cryptocurrency for the first time, it is probably wise to have a firm understanding of what makes the two most popular cryptocurrencies different from one another. First, let’s look at some Bitcoin facts before we follow it up with Ethereum.

How many Bitcoins exist?

As of September 27, 2017 a total of 16,590,688 BTC have been mined and are theoretically in circulation –however with the number of Bitcoin wallets lost unknown, that number may not be a clear indicator of how many Bitcoins are in circulation. This also doesn’t reflect the number of coins which were lost or produced in the genesis block, as those cannot be spent.
In all, there will only ever be 21 million Bitcoins. The reason for this is to create scarcity, which gives Bitcoin the added benefit of being a deflationary currency. Bitcoin has a controlled supply.

Reputable investment in Bitcoin

Bitcoin is a darling among investment firms, second only to Ethereum. Fidelity Investments is so supportive of Bitcoin they accept it in their cafeteria.

Other reputable Bitcoin investors include Marc Andreessen, Barry Silbert, Blythe Masters, David Rutter, Adam Back, and JP Morgan –the latter of which has also been accused of abusing the market.

In the curious case of JP Morgan, the CEO has publicly professed Bitcoin to be a bad investment (read: fraud) while his company has been helping clients invest in the cryptocurrency at a lower price due to the bad publicity their CEO is creating. Other firms are crying foul, and some groups have even filed lawsuits over their practice. Yes, this is the same JP Morgan which played a major part in the 2008 financial crisis, and we can only hope their comeuppance is drawing closer.

China is also taking part in the fear, uncertainty, or doubt (FUD) with almost weekly up and down claims that range from government adoption and regulation to making cryptocurrency exchange illegal for individuals. It’s safe to assume governmental bodies will be testing the boundaries of cryptocurrency –or just kicking its tires, for some time to come.

This is also why, going forward, you simply cannot believe everything you read.

So, what’s the difference between Bitcoin and Ethereum?

Both cryptocurrencies, like all currencies, are ruled by trust. That doesn’t suddenly go out the window. It would be stupid to think there’s a lack of trust in either when you see the names that choose to associate themselves with either respective cryptocurrency.

However, crypto is the new kid in school. And all cryptocurrencies are either subject to courting or belittling by the most popular kids in #fintech school –the JP Morgans of the world. That shitty best friend when you’re trying to be a social climber.

If you know high school politics, you know where this goes. I’d suggest Mean Girls as a great insight for the Every Person, but we all know how Lohan turned out.

And then there’s the advent of smart contracts. I promise you this: they’re what you need to keep an eye on in terms of that investment portfolio. It is no longer about “my dad can beat up your dad” in the cryptocurrency world. There is no clear winner.

It’s about which smart contract has the scalability the world is looking for. Cryptocurrencies have followed Ethereum and taken its lead.

Ethereum heralds the first application of smart contract technology for cryptocurrency and blockchain, but it wasn’t the very first, ever, in the history of all smart contracts.

Smart contract technology actually dates back to 1996.

However, Ethereum is by far the most compelling application of smart contracts to date, that’s for sure. The blockchain solidified that.

Just like the iPhone didn’t create anything new, it just did it right. That’s Ether.