The Ethereum vs. Bitcoin debate has always been an interesting one as both cryptocurrencies are at the top of the ladder. The two cryptocurrencies have many similarities between them but they also have many differences which make them unique. The story of Bitcoin versus Ethereum starts in 2009 when Bitcoin was introduced as the first-ever cryptocurrency. Bitcoin was the face of cryptocurrency was many years till a blockchain platform was launched. That platform for blockchains is now known as Ethereum. The new cryptocurrency became a fast competitor of Bitcoin only five months after its launch.
Shay Benhamou says that this competition between Ethereum and Bitcoin is an eternal battle. Shay Benhamou is an expert in cryptocurrency investments and often shares his thoughts, views, and lessons for cryptocurrency traders. Let’s review some reasons why he considers Ethereum to be an eternal rival of Bitcoin.
Reasons Why Ethereum Is Bitcoin’s Eternal Rival
Similarities Between The Two
Ethereum and Bitcoin are similar in that they have the same foundations. Both assets are cryptocurrencies and are both high in demand. Bitcoin and Ethereum are decentralized cryptocurrencies. This means that no bank or government authorities have control over them. They are stored in blockchain systems. The decentralized form of these cryptocurrencies is what makes them so reliable because the owner of the currency has all control over it.
Ethrereum and Bitcoin both use a proof-of-network consensus which means that they require verification and confirmation before they are issued. Due to the verification and confirmation processes that are necessary, both assets have slow transaction processes.
What Makes Them Different
Shay Benhamou says that while these two assets have many similarities, they also differ in many technical ways. They use different algorithms where Bitcoin is run on SHA-256 and Ethereum uses ethash. They also have different block times. In this regard, Ethereum is faster than Bitcoin because while Ethereum transactions are completed within seconds, while Bitcoin transactions can take several minutes to complete.
The most prominent difference between the two is in the fact that they have different overall aims. Bitcoin was developed to perform as an alternative to national currencies. It aspires, and has somewhat succeeded, to become the medium of exchange. On the other hand, Ethereum was created to work as a platform to provide blockchain services with its own currency of Ether. Ethereum does not want to establish as a monetary system unlike Bitcoin.
Driving Force Behind Rivalry
The prices of both assets have always been in close quarters over the years. As soon as Bitcoin makes a move to become prominent in the eyes of the investor, Ethereum comes up with ways to increase the competition and introduces something new. For instance, the new upgrade of Ethereum is said to end Bitcoin’s blockchain dominance. The developers have made significant changes in the Ethereum system which is bound to attract many more investors. However, we cannot be too sure of this as Shay Benhamou says, because Bitcoin may just come up with an upgrade that may put it back to its initial dominant position. The constant challenges and upgrades that these two cryptocurrencies hit each other with is the main reason why Shay Benhamou and many others believe that the rivalry between Bitcoin and Ethereum will last all of eternity.
Shay Benhamou is a firm believer that the rivalry between Bitcoin and Ethereum is eternal. He has many solid reasons to back this claim and has shared a few with us. Both assets are similar in so many ways but also differ in a lot. This makes them the perfect competitor for each other. Moreover, they both were launched in a close timeline which means that they grew together. The market value of both these assets is always in close numbers. Even if one is affected by something, it soon closes the gap in the values. All these reasons pile up to support Shay Benhamo’s belief that their rivalry is everlasting.