In today’s time, there are many cryptocurrencies in the world. Cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, etc., are virtual currencies or decentralized finance that uses various technologies like blockchain technology, tangle technology for security. These currencies are not backed by any government or any centralized entity but have many benefits and advantages over traditional money. That’s why many people prefer to use cryptocurrencies in place of any conventional currency.
Bitcoin and Ethereum are some of the most popular cryptocurrencies in today’s time. Bitcoin is the first-ever cryptocurrency that is widely used in various regions of the world. But bitcoin has multiple disadvantages. That’s why many people start using other cryptocurrencies.
Ethereum also has many benefits over bitcoin and is also widely used by people. So in this blog, you will get to know about Ethereum and the benefits of Ethereum over bitcoin.
What is Ethereum?
Ethereum is a virtual currency based on the blockchain network and is currently the second most popular cryptocurrency and decentralized application globally, with over 50 million users as of 2021. Ethereum was created by Vitalik Buterin and released on 30th July 2015. Ethereum also has a lot of advantages over bitcoin. That’s why many investors are investing in Ethereum.
Advantages of Ethereum over Bitcoin
Ethereum offers various advantages to investors over bitcoin. Namely 7 Advantages of Ethereum over bitcoin are:
#1 Less Transaction Time
An average Ethereum transaction takes only 10-15 seconds to complete, whereas a bitcoin transaction can take about 10-15 minutes. This advantage of Ethereum over bitcoin makes it user-friendly. It makes it more feasible for day-to-day use, whereas 10-30 minutes for a bitcoin transaction almost makes it impossible to use them in everyday use.
#2 Fewer Transaction Fees
The next advantage of ethereum over bitcoin is its transaction fees. The transaction fees of bitcoin can be up to 4-5% and sometimes even high, whereas the transaction fees of Ethereum are just about 1-2.5% or even low. Also, you need perfect internet for transacting a bitcoin, and also in 2021 many people do not have a good internet speed, so many people hesitate to use bitcoin.
#3 More Eco-Friendly
Ethereum is much more eco-friendly as compared to bitcoin. Almost about 1100 kWh of electricity is required to make a transaction of one bitcoin whereas Ethereum requires just 62Kwh of electricity. Also, a new cryptocurrency, Ethereum 2.0, will replace Ethereum in the upcoming future, reducing its energy consumption by 99 percent. According to an estimate by Galaxy digital, almost about 113.89 terawatts per hour per year of energy is used by the bitcoin network. In contrast, the overall banking system consumes only 264 terawatts per year. Also recently, Elon Musk, founder of Tesla, SpaceX, and one of the most famous billionaires, rejected bitcoin as a payment method.
#4 Much more than a cryptocurrency
Bitcoin only trades in cryptocurrency, whereas Ethereum offers its customers various methods, including Cryptocurrency, Smart Contracts, and Ethereum Virtual Machine, making it more than just a cryptocurrency.
#5 More scope in future
According to an estimation in 2021, only about 50% of Ethereum’s will be mined, whereas the majority of bitcoins are already mined by the miners, which reduce the scope of bitcoin in the future, and with other advantages, Ethereum probably has more range than bitcoin in the upcoming future,
These all are the advantages of Ethereum over bitcoin. These advantages give an upper edge to Ethereum over bitcoin. But what is your opinion on which virtual currency will lead the market? Is it Bitcoin or Ethereum, or any other cryptocurrency? Comment below.
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Frequently asked questions
What is Ethereum?
Ethereum is a virtual currency based on the blockchain network and is currently the second most popular cryptocurrency and decentralized application globally, with over 50 million users as of 2021
How much is the transaction time of ethereum and bitcoin?
An average Ethereum transaction takes only 10-15 seconds to complete, whereas a bitcoin transaction can take about 10-15 minutes.
Is Ethereum more eco friendly than bitcoin?
Yes, Ethereum is more eco friendly than bitcoin.