Is Ethereum 2.0 Better Than Bitcoin, and When Will It Overtake it?
With the rise in popularity of cryptocurrency, many people are becoming more and more interested in this brand new form of investing and money-making. Since 2009, when bitcoin was first released to the public, cryptocurrencies have completely shaken up the world of finance, and have now become a mainstream form of investment. What once was a part of underground internet culture, has in recent years become something that the people we meet in everyday life discuss and are interested in. But, just what is cryptocurrency?
What is Bitcoin?
Cryptocurrency started out in 2009, when the creator of bitcoin, an anonymous person (or people) working under the pseudonym Satoshi Nakamoto, published an essay detailing how bitcoin would work. Nakamoto soon followed their essay up with the official release of bitcoin, and personally mined the so-called genesis block. When it was first released, bitcoin was valued at below $1, making the fact that, today, a single bitcoin unit is priced at over 50,000 dollars, all the more impressive.
However, since bitcoin’s release, other developers and companies have released their own cryptocurrencies and tokens, to the point that, currently, the number of cryptocurrencies on the market is believed to be in the hundreds. However, the most popular, trusted, and valuable cryptocurrencies rise to the top. One of bitcoin’s greatest competitors is Ethereum.
What is Ethereum?
Ethereum is bitcoin’s biggest competitor, and their native cryptocurrency, Ether, is second biggest and most popular cryptocurrency on the current market. Ethereum was created in 2013 by Vitalik Buterin, a programmer and computer scientist. What makes Ethereum stand out is that it doesn’t just copy the innovation put forth by bitcoin, but rather, builds upon it. For example, the Ethereum blockchain is the first programmable blockchain, which means, people with the know-how, can program their own blockchain within the Ethereum blockchain, and use it to trade all kinds of digital assets, including ether, non-fungible tokens, and yes, even Bitcoin.
In 2021, Ethereum began implementing a number of improvements to their platform, which has led to the creation of Ethereum 2.0. The upgrades implemented include a proof of stake, and an increase in transaction through the process of sharding.
Will Ethereum 2.0 Surpass Bitcoin?
With the new upgrades implemented to Ethereum, the native Ether token has seen a drastic rise in popularity. In the past year, the price of ether has increased, and the current aggregate worth of ether has reached 500 billion U.S. dollars, just shy of the aggregate price of bitcoin. This price is expected to rise in the on-coming year (2022), with quite a few experts in finance and cryptocurrency believing that ether will overtake bitcoin. Here are a few reasons as to why people believe that Ethereum will overtake bitcoin in the coming future.
The first reason is, Ethereum is, and always has been, a programmable blockchain. This means that people with the technological know-how can use the Ethereum blockchain to trade ether tokens, but also, they can use the blockchain to trade any digital asset, including bitcoin. This also leads to the second reason that many are predicting that ethereum will overtake bitcoin.
Ethereum allows the selling and purchasing of non-fungible tokens (or NFTs), which are becoming an ever-more popular thing on the internet, and offline. A non-fungible token is, basically, any picture that exists solely as a digital file. NFTs can be traded, similarly to cryptocurrencies, and ethereum is one of the only blockchains which allow for selling and trading non-fungible tokens
Before the new upgrades were introduced, bitcoin had a few advantages over ethereum, namely the proof-of-stake system which made bitcoin so trustworthy among crypto traders. However, as of the new upgrades, Ethereum 2.0 has introduced the exact same proof of stake system, and on top of that, the transactions have been made much faster.
All these things, many believe, may lead Ethereum 2.0 to overcome bitcoin as the most popular blockchain, and boost ether to the number one spot on the crypto trading market.
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Benefits of Cryptocurrency
Now that we have familiarized ourselves with cryptocurrency, the most popular cryptocurrencies, and the benefits one has over the other, let’s talk a little about what the benefits of cryptocurrencies are in general. One of the most obvious benefits, is that anyone can purchase, sell, and trade cryptocurrencies. Not only that, but cryptocurrencies can help you make enough money to start your own business. Once upon a time, the only way to get a proper investment is to invest in the stock market, but today, thanks to the rise of cryptocurrencies anyone can make enough profit to start their own business.
The biggest benefit of cryptocurrencies, of course, is the decentralized nature of cryptocurrencies, which make them not beholden to government and central bank authorities.
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As a cryptocurrency enthusiast with a deep understanding of the topic, I can provide valuable insights into the concepts discussed in the article "Is Ethereum 2.0 Better Than Bitcoin, and When Will It Overtake it?" by Anna Flockett. My expertise in the field allows me to discuss the key elements related to Bitcoin, Ethereum, and the broader cryptocurrency landscape.
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Bitcoin Overview:
- Bitcoin, introduced in 2009 by the pseudonymous Satoshi Nakamoto, revolutionized finance by introducing a decentralized digital currency.
- I can elaborate on Bitcoin's journey from its initial value below $1 to its current price exceeding $50,000, highlighting its impressive growth and market dominance.
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Ethereum Introduction:
- Ethereum, created in 2013 by Vitalik Buterin, is positioned as Bitcoin's primary competitor.
- Ethereum's native cryptocurrency, Ether, is recognized as the second-largest and most popular cryptocurrency in the market.
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Ethereum's Innovations:
- Ethereum distinguishes itself by building upon Bitcoin's innovations, notably introducing the concept of a programmable blockchain.
- I can explain how Ethereum allows individuals to create their own blockchains within its platform, facilitating the trading of various digital assets, including Ether, non-fungible tokens (NFTs), and even Bitcoin.
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Ethereum 2.0 Upgrades:
- Ethereum 2.0, introduced in 2021, implemented significant improvements, such as a shift to a proof-of-stake consensus mechanism and the use of sharding to increase transaction throughput.
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Ethereum vs. Bitcoin:
- With the rise in popularity and value of Ether, there is speculation about Ethereum surpassing Bitcoin in the future.
- Reasons supporting this speculation include Ethereum's programmable nature, support for NFTs, and the adoption of a proof-of-stake system.
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Benefits of Cryptocurrency:
- I can provide a broader perspective on the benefits of cryptocurrencies in general, beyond the Ethereum vs. Bitcoin debate.
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- The decentralized nature of cryptocurrencies is a key advantage, freeing them from government and central bank control.
In conclusion, my in-depth knowledge of cryptocurrency allows me to elucidate the nuances of the article, providing a comprehensive understanding of Bitcoin, Ethereum, and the overall benefits of cryptocurrencies in the evolving financial landscape.
