Should I Mine Bitcoin or Ethereum?

Overview

Because these two cryptocurrencies were created with very distinct goals in mind, there are some substantial variations between Ethereum and Bitcoin mining. When you look closer, it may be challenging to distinguish the differences between these cryptocurrencies, but as you continue, you will see a stark disparity among them. You may already be aware that a trader’s approach differs significantly from an investor. 

A trader can manage to buy a crypto and hold onto it until the best time to sell it. On the contrary hand, a trader is concerned with the cryptocurrency’s price fluctuations and liquidity. Every trader eventually asks himself, Bitcoin or Ethereum, which one is best for trading?  To decide which cryptocurrency is better for trading, it is vital to analyze both of their characteristics.

Bitcoin vs. Ethereum characteristics

BTC and ETH are frequently compared by traders and buyers who are just beginning to work with crypto. Many people wonder if we should operate with Bitcoin or Ethereum because they believe that the crypto coins are not all that different from one another and trading them is easy using Bitcoin 360 AI. Typically, the only criterion they can use to assess cryptocurrencies is pricing. But Ethereum is different from Bitcoin. 

The differences reside in the technical space and the functionalities that individuals can use. We must examine the technology used to create cryptos, the total supply of coins, and the methods used to mine them to evaluate them.

The Technology employed

While Ethereum is a decentralized system for implementing smart contracts, Bitcoin is supposed to be a value transfer. The world’s largest a distributed software platform that enables the development of distributed apps and smart contracts was released in 2015, and its name is Ethereum. 

Bitcoin is an example of a distributed P2P cryptocurrency that can be sent immediately and safely to any customer worldwide. The Ethereum network offers the assurance that both the customer in need of the money and the individuals ready to assist him in developing the project will not lose their money. All deposited funds are refunded to their proprietors if the project cannot raise the necessary sum. 

Ethereum also enables the purchase of the coin for productive investments or to pay for products and services. Because of their correlation, it is possible to exchange Ethereum for Bitcoin and vice versa.

Liquidity

With a daily turnover of about 17 billion, Ethereum is less active than Bitcoin. The everyday turnover of the closest cryptocurrency is more than 6 times lower than that of ETH. Without question, among all cryptocurrencies, Ethereum and Bitcoin have the greatest levels of liquidity. From a liquidity standpoint, whether to operate with Bitcoin or Ethereum does not matter since both cryptocurrencies fully match these requirements.

Mining difficulty associated with Bitcoin

Because of the network’s growing hash power over the past 2 years, mining bitcoin has become much more challenging. To keep stable block timings at roughly 10 minutes, the Bitcoin network complexity is changed to account for rising hash power. 

The launch of the Antminer series was a major factor in the commencement of a significant increase in network hash power in 2015, which Bitcoin miners noticed. ASICs were used by Antminer, which were thousands of times more efficient at performing the SHA-256 algorithm used by Bitcoin’s proof-of-work method.

Mining profitability comparison

Since there are so many variables to consider, it is challenging to put together a reliable ETH vs. BTC mining profitability comparison. For both cryptocurrencies, starting a mining business will need a sizable investment. It is important to remember that Bitcoin is significantly rarer than Ethereum. 

This shortage could drive future increases in the value of Bitcoin. However, Ethereum has a special place in the crypto world, and the bulk of the tokens on the market are built using either their ERC-20 or ERC-712 protocols. Due to this dependence, Ethereum may surpass Bitcoin in terms of market valuation in a few years. 

Conclusion

This shortage could drive future increases in the price of Bitcoin. Nevertheless, Ethereum has a special function in the cryptocurrency world. Due to this dependence, in a few years, Ethereum may surpass Bitcoin in terms of market valuation.