Cryptocurrency is a digital or virtual
currency that serves as a medium of exchange and uses cryptography to make
transactions more protected. Through the use of blockchain technology, crypto
transactions are decentralized by nature, as compared to the centralized banking
system that we are all familiar with. There are many cryptocurrencies created
everyday but most of them do not survive. Bitcoin and Ether are the most
popular cryptocurrency based on market cap. Bitcoin, the leading cryptocurrency,
is a decentralized and transparent digital ledger that records all
transactions made with Bitcoin. The main benefit of using Bitcoin is that you can
transact anonymously and aren’t subject to excessive transaction fees. This is
thanks to the decentralized nature of Bitcoin. The second popular one is Ethereum.
Ethereum is a fully functional platform that facilitates smart
contracts, a binding and a self-executing agreement between two parties.
While Bitcoin has a limited ability to execute scripts, Ethereum includes a full-featured virtual machine capable of running complex applications. The difference between the two is
Bitcoin was meant as a replacement of fiat currencies and
it performs the same functions as they do. While on the other hand,
Ethereum was designed specifically for running decentralized applications.
While you can use it as a store of value, an investment and a mean of making payments.
In conclusion, if Bitcoin were to disappear tomorrow, people will lose a
huge sum of money but if Ethereum were to disappear, it would far more adversely
affect the rest of the world.