Bitcoin and ethereum are, without any doubt the top two discussed cryptos in the world. The debate is, which is going to be the biggest? To answer this, you need to know is what bitcoin and ethereum actually are.
Bitcoin simply represents a digital currency connecting two peers securely and anonymously. Using blockchain technology, it stores all the transaction records on a public ledger and miners work to verify and add transactions to the block to keep it updated. Ethereum, however, is not meant as a digital currency. Instead it is a decentralized platform for contracts. Although it, as a platform has its own currency called Ether( ETH), it is pretty clear that it serves a different function than bitcoin. It is a decentralized open-ended software that everyone can work on to create ‘Distributed applications (dApps) and smart contracts’. The smart contracts serve as a blueprint for dApps and the participants of a contract can interact with each other without any interference by a third party. Also to note that the contents of the dApp are not owned by any single person.
Bitcoin is based on proof of Work (POW) algorithm, meaning that the miners compete to solve cryptographical problems and the first miner to solve receives the block reward. On the contrary, Ethereum mining is also based on POW for now but from 2020 onwards, it plans to utilize Proof of Stake (POS) algorithm. The mining process will become fully virtual and the miner’s job will just be limited to validating the blocks to be added next and placing bets on their selected block. If the block gets affixed, the miners receive rewards in proportion to their bets. POS method is more user and resource-friendly so it is expected to attract a lot of users, putting in a hard competition for bitcoin.
The current average block time for bitcoin is about 10 minutes compared to only about 30 seconds for ethereum. The transaction fees charged by bitcoin are much higher than ethereum, but that is also partly a result of large average values of bitcoin transactions.
As per the current charts, bitcoin rests at 57% of its all-time maximum, ethereum resting way lower, at about 83% its peak value. Both currencies, however, seem to be in a recovery phase so it is hard to tell which one is going to top in the coming time, at least for now. The market cap, currently, lies at 152 billion USD for bitcoin and 20 billion USD for Ethereum.
Right now it seems that bitcoin rules the globe, but keep in mind that every crypto functions differently and has different set aims. The final verdict to this question will be presented forward with the next years’ turnout. So keep the shirt on and just wait.