10 Reasons Ethereum is Better Than Bitcoin

Bitcoin pioneered the world of cryptocurrencies over a decade ago and remains the king of the crypto world in the eyes of the public. Ethereum, on the other hand, was founded together with its native ether (ETH) IN 2017. Although Ethereum and ETH have existed in the shadow of Bitcoin, the former has been gathering momentum specifically in the past year. Even crypto wearables is seeing a spike in ETH vs BTC, BitGeeky.io, a popular crypto wearable store, reports that ETH T-shirts and Hat sales are up 281% while BTC sales of similar items is up only 19%. The July 2020 report on cryptocurrency usage and adoption indicated that the use of the Ethereum network had surpassed that of Bitcoin, setting a new record in the use of the cryptocurrency ecosystem to advance the digital currency trade and development. In this article, we highlights 10 reasons why you should consider Ethereum over Bitcoin if you intend to invest, trade on cryptocurrency to achieve your digital currency investment goals, or simply grow your developer skills.

  1. ETH is a better currency than Bitcoin

One of the factors that separate many cryptocurrencies is the speed with which their respective transactions are verified. While Bitcoin takes 10 minutes to verify, Ethereum as a currency only takes 10 seconds. For Ethereum, a minor advantage over Bitcoin is in the concept cost of computational power set by miners or “gas.” The process ensures the price of ETH is separated between the value of a cryptocurrency and the actual computation cost, contrary to Bitcoin, whose block price is subject to the whims of fluctuating price. Therefore, a faster speed of transaction makes Ethereum a better currency for trade.

  1. A longer period of volatility

Over the last year, ETH has turned out more volatile than Bitcoin, opening more opportunities for traders, particularly for those who want to go short. According to the volatility metrics report, ETH has experienced an average of 29% growth over the last 6 months alone. For example, in the space of just between September 2020 and March 2021, the price of ETH has increased from $480 to $1700, representing a 71% increase.

The unusual volatility is thanks to the increase in DeFi projects that have their ecosystem hosted by the Ethereum platform. Any trader and holder of crypto assets must keep watch of ETH prices as we move forward because the returns for any trader or investor are more likely to keep outshining Bitcoin.

  1. ETH’s proof of stake is better than Bitcoin’s Blockchain Proof of work

Bitcoin’s Blockchain is more vulnerable to monopoly and attack than then Ethereum. The reason is that blockchain involves a small concentration of miners who may decide to conspire to own more computational power in the entire blockchain network. The risk is that if a bad actor wants to start injecting fraudulent transactions into the blockchain, they can out-mine other miners in the network. What it means is that proof of work means the longest blockchain is the true blockchain.

However, Ethereum offers an alternative, proof of stake, which gives more mining power to people with larger amounts of ETH. The advantage here is that ETH on the Ethereum platform means faster block time, lower transaction fees, and less energy consumption during mining.

  1. The Decentralized Finance (DeFi) opportunities

The growth of DeFi has been astronomical over the last year, and dapps are already promoting the crypto lending industry. People can now borrow with the support of smart contracts, which are becoming more popular every day with individuals and institutions.

As of 10 February 2021, the total value of assets locked in DeFi hit $40 billion, from the $9.5 billion six months ago. It is significant to point out that most (80%) of the DeFi decentralized applications (dapps) are on the Ethereum network. This gives Ethereum the power of Bitcoin, as the former’s ecosystem thrives in supporting other businesses, which is likely to increase its value over the years as more people develop dapps to expand their business.

  1. More efficiency with the recently launched Ethereum 2.0

Ethereum has continued to grow methodologically and consistently since it came to the fore. Of that development is the recent launching of the long-awaited Ethereum 2.0, which is a major improvement on the platform as it brought more stability and efficiency through sharding. The end goal was to increase Ethereum’s processing capacities and capabilities, which meant that the network can now handle more transactions faster than Bitcoin’s Blockchain.

  1. Smart Contract and its benefits

Smart contracts are some of the unique features of the Ethereum network. They can help two entities to sign a contract that is conditional on certain events in the future. If the event takes place, then the transaction is considered to have occurred. The two parties will write their conditions of the contract until they come to a consensus. The efficiency smart contract brings to the table for the future transaction is limitless, saving the potential costs associated with attorneys. The fact that smart contracts are hosted by Ethereum means that this is one cryptocurrency that will continue to grow to the benefit of traders and crypto-asset holders.

  1. Increased functionality on Ethereum platform

Since the launched in 2017, Ethereum can only be defined as the land of innovations. The innovations have meant that Ethereum provides more capabilities in asset management and general daily life. The frequent innovations mean that new functionalities are added every other day. For example, the smart contract is now augmented with dapps.

One of that popular dapp is Chainlink, which is meant to facilitate communication between blockchain-based protocols and off-chain sources of information. The result is a platform that accommodates everyone, with multiple solutions to common human problems.

Compound, a money market protocol, is another functionality that is growing Ethereum. Compound allows users to earn interest or borrow assets against their crypto assets as collateral. You cannot find these limitless opportunities on Bitcoin.

  1. Ethereum is the preferred platform for Stablecoins

The flexibility of the Ethereum platform is unmatched. The digital contract functionality provides an excellent ecosystem for the issuance of stablecoins. Stablecoins are cryptocurrencies pegged to a fiat currency to manage their volatility. Ethereum platform host the most valued stablecoins, Tether and USDC. These stablecoins have experienced tremendous growth over the past year. While Bitcoin is still the most popular crypto, its blockchain cannot match the Ethereum platform.

  1. Ethereum’s Developer Community is more advanced

While both Bitcoin and Ethereum’s developer communities are consisting of volunteer tech enthusiasts working to contribute to their respective open-source repository, the Ethereum team has an additional enterprising team of private developers who write blockchain apps. Their work leverage the Ethereum development platform, giving more opportunities.

  1. Ethereum provides more ways of making a profit

While Bitcoin is the pioneer of cryptocurrencies, it’s apparent that Ethereum learned from the mistakes of the pioneers by creating a better platform with more ways to empower all those people participating in its development and growth. From ETH mining to faucets, staking, and developing, the ways of making money with the platform seem limitless.

Final Thoughts

Although Bitcoin has been the king of a cryptocurrency over the years, Ethereum offers more for traders, developers, miners, and crypto-asset holders. The technology behind Ethereum means it will continue to grow, hence increase investors’ income, and create more opportunities to grow economically.

We are likely to see more Ethereum functionalities increase in the coming years as more practical solutions come up to help solve common problems. With the increased opportunities, more growth to the value of ETH cryptocurrency as more apps are coming up to better the platform’s functionality.

Yes, Bitcoin could be trending higher in value, but the increased adoption of the Ethereum ecosystem makes it a better platform for more limitless opportunities for everyone.