Content adapted from this Zerohedge.com article : Source
Authored by Samantha Radocchia via Quora.com,
Today's hype surrounding Bitcoin, Ethereum, cryptocurrency, and blockchain technologies rivals the dot-com bubble in the 90s. There is a lot of money pouring into this space, and it doesn't seem to be slowing down anytime soon.
Unfortunately, while the masses may be able to say, "Yeah, I've heard of Bitcoin," a large percentage of people still aren't quite sure what it is - and are even more confused about Ethereum.
If you're even remotely interested in this space, consider this your beginner's guide.
Bitcoin
The easiest way to define Bitcoin is to call it a "digital dollar." That's really all it is - minus all the formal regulations that come with a bank (which is what makes it such a disruptive concept). It's not a technology. It's not a company. It's your money, held in a digital form.
Anyone can create an account to buy and sell Bitcoin through websites like Coinbase. The price of Bitcoin then fluctuates based on supply and demand. However, now people are beginning to convert their Bitcoin into what are called "tokens," which companies issue during an ICO, or Initial Coin Offering, which allows people to invest in a company by purchasing tokens with their Bitcoin. Based on the supply and demand of those tokens, their price (just like a share of stock after a company holds an Initial Public Offering, otherwise known as an IPO) goes up or down. These tokens operate on a secondary market, separate from the rise and fall of Bitcoin's market as a currency.
Some people buy Bitcoin because they want to store their money somewhere other than a bank. Some buy Bitcoin as an investment, believing that its price a few months or years from now will be substantially higher than it is today. And some people purchase Bitcoin as a means of investing in companies that raise money through an ICO, since equity in those companies cannot be purchased with traditional currency. You can only purchase tokens with Bitcoin or Ether, which is Ethereum's cryptocurrency.
Ethereum
Ethereum is another cryptocurrency, and one many people see as potentially overtaking Bitcoin as the dominant coin in the market.
In any economy, currency is relative. Since Bitcoin has been the leading coin since the beginning, the price of every other "altcoin" (and there are a lot of them) is measured against Bitcoin. Take Litecoin, for example. It is a currency that has its own market and holds its own merit, but while Bitcoin is priced at over $3,000 per, Litecoin currently sits around $45 per. So, while it has its own value, it is by no means a market leader.
What makes Ethereum different is its technology, not the fact that it's yet another cryptocurrency. Ethereum's coin value is referred to as "Ether," and just like Bitcoin is bought and sold, and used by investors to buy into ICO opportunities.
The difference between Ethereum and Bitcoin is the fact that Bitcoin is nothing more than a currency, whereas Ethereum is a ledger technology that companies are using to build new programs. Both Bitcoin and Ethereum operate on what is called "blockchain" technology, however Ethereum's is far more robust. If Bitcoin was version 1.0, Ethereum is 2.0, allowing for the building of decentralized applications to be built on top of it.
In a nutshell: it's great for innovation.
Furthermore, there is heavy support behind Ethereum's technology in what is called The Enterprise Ethereum Alliance. This is a super-group of Fortune 500 companies that have all agreed to work together to learn and build upon Ethereum's blockchain technology—otherwise referred to as "smart contract" technology. In this case, "smart contracts" mean that demanding business applications can automate extremely complex applications.
What has so many people - including me - excited about Ethereum's technology is its potential to impact IoT projects and processes. It's by no means a perfect technology yet, but it has absolutely opened the door for all sorts of unique innovations. For example, my firm, Chronicled, recently worked with a 3D-printing company, Origin, to develop a 'smart tag' for sneakers and luxury goods that could guarantee their authenticity. This was done leveraging Ethereum's blockchain technology.
All in all, and if you're as curious and excited about this space as I am, the major difference between Bitcoin and Ethereum is their separation of roles—and the fact that they are aiming at parallel but different goals. This article on the topic summed it up perfectly, by citing that early adopters are beginning to see the separation as such: "Where Bitcoin is disrupting currency, Ethereum is disrupting equity."
I wish I could still get bitcoin for $3,000 or LTC for $45...I did buy in at those prices, but no more.
It will be interesting to see how everything unfolds. Everyone is looking for the "winning" token, that is a mistake. There will be many coins in our future, all doing different things. People will be using an assortment of tokens down the road. It is like today, go into Greece and it is the Euro...Yen in Tokyo....USD in Los Angeles.
We need to see a zerohedge article about STEEM....that will be the really game changer.
I know that Some people buy Bitcoin because they want to store their money somewhere other than a bank. Some buy Bitcoin as an investment, believing that its price a few months or years from now will be substantially higher than it is today. And some people purchase Bitcoin as a means of investing in companies that raise money through an ICO, since equity in those companies cannot be purchased with traditional currency. You can only purchase tokens with Bitcoin or Ether, which is Ethereum's cryptocurrency.
Ethereum offers a lot more than bitcoin as a blockchain. Bitcoin is limited to basically conducting transactions, Ethereum offers smart contracts allowing it to actually store data which is a plus in its favour
Bitcoin only gets pushed up because it has the name that people can recognise. People investing do not know about Ethereum or other coins. They only know bitocoin so that is what they buy. As we move ahead in time that will change. People will see bitcoin and be able to compare it to so many more as their names become more recognisable
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Excellent analytic post.You give here more information about cryptocurrency. Actually I just have join last month but I do not know many things about bitcoin and ethereum. You guide us and give us explanation about cryptocurrency.Thans to sharing this post.
Bitcoin and Ethereum also have some similarities. They both change in value based in the direction and volume of trades just like stocks. They use blockchain technology with public ledgers.Bitcoin could be a currency and Ethereum could be a development platform. Ether is that the fuel that powers Ethereum. Ethereum and Ether don't seem to be a similar factor. Bitcoin fuels itself. Ethereum was created specifically for different applications to be engineered on prime.Ethereum, by nature has not reached its full potential because developers haven't thought everything up yet.
There are many other projects besides ethereum which is looking to disrupt the future of how business is made. Exciting times!
Etherum is poorly understood by the community.
It is complex, highly nuanced and has a big attack sufrace because of that but it is amazing new tech that brings true innovation to table.
That is somenthing not achieved by many other altcoins which are just tuned bitcoins.
Thanks for this! Very informative for beginners like me! Personally, I'm looking forward to Ethereum's growth. :) Your post is highly appreciated.
Very useful information, thanks for sharing
Yes, the information is useful. Which blockchain is in your opinion more advanced? Also do you prefer some other blockchain, which is not mentioned in this article ? I would love to know :)
i prefer Ethereum tbh.
I did not know many thing about Ethereum,
Ethereum is a ledger technology that companies are using to build new programs. Both Bitcoin and Ethereum operate on what is called "blockchain" technology, however Ethereum's is far more robust. If Bitcoin was version 1.0, Ethereum is 2.0, allowing for the building of decentralized applications to be built on top of it. In a nutshell: it's great for innovation. Furthermore, there is heavy support behind Ethereum's technology in what is called The Enterprise Ethereum Alliance. This is a super-group of Fortune 500 companies that have all agreed to work together to learn and build upon Ethereum's blockchain technology—otherwise referred to as "smart contract" technology. In this case, "smart contracts" mean that demanding business applications can automate extremely complex applications.Thanks for the great informative material and links. I have learnt a lot.
Great are article for Minnows to understand the basic difference between between Bitcoins and Ethereum.
Bitcoins are just digital currency , while Ethereum is a ledger technology
Nice. Thanks for sharing.
thanks man. I needed this, since im new to crypto
Thanks for your good news @zer0hedge
my friend thanx you so much @zer0hedge for sharining this helpful post
Well written, good article. Although I have some doubts anout the timing of the article. Also bitcoin vs etherium comparison is not my kind of beer.
Wow very informative post really great..
No Bitcoinsssss, love you @steemit :)
the two coins that are shapping the crypto currency market, most people dont know much about Etherium , now they know something
very good article. i think useful.
wow Very interesting Really beautiful work, @zer0hedge
Thank you for sharing
Wow keren. Posting yang sangat baik untuk bahan pertimbangan dalam mengambil keputusan yang tepat. Luarbiasa sangat bagus. Semoga Sukses selalu untuk anda.
thanks for sharing
Thanks for this insight
I think I'll go for ethereum thanks for sharing...
No way I will trust the Rust system if this is true. Be simple, definitive and inescapably delineated. It's like the difference between Bitcoin and Ethereum.
Litecoin currently sits around $45 per.
This must be old, Litecoin 366 on coinmarketcap today
a very useful share, thanks.
also speed and cost - sending ether is a joy. waiting for bitcoin is a pain in the arse! :)
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Some similarity seems to be present here:
https://www.forbes.com/sites/quora/2017/09/14/how-is-ethereum-different-from-bitcoin/
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