There is no doubt that Bitcoin is ruling the Cryptocurrency market. As time flies, Bitcoin is getting more recognition not only from individual investors but from the institutions as well. More retailers are accepting payment with Bitcoins. But with this increasing popularity and increasing demand, there is a risk of crashing the market very soon.
Due to the rising Bitcoin’s price value, people are searching for an alternative. And a question is rendering in the Crypto market. Can Ethereum be the next Bitcoin?
Can Ethereum Be the Next Bitcoin?
Though Bitcoin is the most popular and successful Bitcoin to date, there is some competition for Bitcoin as well. If we take aside Bitcoin, do you know what the most valuable Cryptocurrency is in the market? It is Ether or Ethereum. In this one-year duration of 2020 to 2021, the price value of Ethereum has increased from around $111 to more than $1,000.
In case you think that the price value of Ethereum is not even closer to Bitcoin, then let me tell you that Ethereum is much younger than Bitcoin. Ethereum came to the market 6 years later, Bitcoin’s launching. It has more latest technologies than Bitcoin. You also can click here for getting further information.
Reasons Why Ethereum Can Be the Next Bitcoin
Here are some reasons that are fuelling the rising of Ethereum and a bit responsible for making Ethereum the next Bitcoin.
1. Significant Differences Between Ethereum And Bitcoin
Though Ethereum and Bitcoin both have given the tag Cryptocurrency, there are some differences between these two. Here are the differences.
Technically, the usage of Bitcoin is not at all limited. Just like fiat currencies, like dollars and euros, Bitcoin also does the essentials. Bitcoin is only a form of Cryptocurrency. You can buy and sell Bitcoins and also take part in Bitcoin trading.
You can make transactions as well with Bitcoin by submitting a minimal transaction fee. If needed, you also can convert the Bitcoins that you have in your wallet into fiat currencies, like dollars.
On the other hand, you can think of Ethereum as a computing platform that offers scripting language for creating smart contracts. This implies that a number of contracts can be created upon the Blockchain that is present here. Just like many other Blockchain, Ethereum is also open-source.
This means anyone can write and implement smart contracts by using them. These are simple series of promises that are present in digital form. The unit value of this Ethereum Blockchain is named Ether. Some characteristics of Ether and Bitcoin are similar.
2. Ethereum is Beyond Only A Cryptocurrency
Ether is a Cryptocurrency that has been launched by Ethereum. In actual Ethereum is a vast computing network. Anyone can use it in order to develop a decentralized application. For example, if any business or organization wants to develop a Blockchain developed solution, they can use the Ethereum platform to build that.
Ether, the Product of Ethereum, has the ability to perform similar tasks as Bitcoin, the most popular Cryptocurrency. Just like Bitcoin, one can make transactions using Ether and also trade with this second-best Cryptocurrency.
From the past few years, we have seen that the government is trying to put restrictions on Cryptocurrencies. Government is concerned about the fact that without knowing all the consequences or understanding the whole concept, citizens are putting their money into it. If any restrictions will be implemented or actions will be taken against Cryptocurrency, Ether will definitely get affected. But not Ethereum.
In case the government puts restrictions on Ether along with other Cryptocurrency, the business of Ethereum will still be continued. Ether is just a product of Ethereum, so Ethereum will still be in the market as a Blockchain developing platform. And the Ethereum platform will be used as a payment platform. Just like the services that are provided by the banks and other financial entities, it will offer payment services to its users.
The facts are saying that Ethereum can be the next Bitcoin in the world of Cryptocurrency. But if the whole Cryptocurrency market falls, it will impact Ether but not Ethereum.