Bitcoin – undoubtedly – is the oldest and most popular digital currency in the crypto universe followed by Ethereum. Thanks to some notable differences in their technical infrastructure, the junior peer is considered capable of surpassing bitcoin in price and market capitalization.
On October 20, 2021, the market capitalization of Bitcoin was approximately $1.2 trillion while that of Ethereum was at $455 billion.
Experts believe that only Ethereum has the potential to surpass Bitcoin’s huge market capitalization.
Let us dig deeper to understand the difference between the two cryptos and find out how the prices of the two cryptos may take different paths in the future.
How is Ethereum different?
Ethereum was created in 2013 which is an open source platform that helps to develop and implement decentralized applications just like blockchain.
Ethereum is considered better than Bitcoin because of the great value it can store in its real-world applications. Ethereum enables the creation of new applications on its infrastructure. While Bitcoin is a digital currency, Ethereum – on the other hand – is a blockchain based network that also runs the currency with the same name.
The Ethereum currency and the ETH blockchain complement each other and the network facilitates the development of the currency by reducing transaction costs. In the process, the price of the token increases.
Relatively speaking, Ethereum could simplify payments around the world as it allows other applications to be built on its decentralized infrastructure, enabling the execution of smart contracts between different parties without any intermediaries.
bitcoin vs ethereum
The price of bitcoin was $11,913 on October 20, 2020, rising to $56,483 on April 20, 2021. This increased to $63,995 on 20 October 2021.
The price of bitcoin increased by 374 percent in the six months prior to this, and an overall increase of 437 percent over the past year.
On the other hand, the price of Ethereum was $368 on October 20, 2020, rising to $2,332 on April 20 this year. This has now increased to $3,849 as of October 20, 2021.
This means that the price of Ethereum has increased by 533 percent in the first six months, and a total increase of 946 percent over the past year.
Thus, we can underscore that the price of bitcoin can certainly be far ahead of its younger peers and it still enjoys the advantage of a first mover. However, circumstances may change later as the Ethereum network moves forward, strengthening its currency in the process.
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