The key difference between Bitcoin and Ethereum
Whether you’ve decided to exchange Bitcoin to Ethereum or make a reverse transaction, it is worth understanding the key differences between these two digital currencies. While Bitcoin can only be used as the decentralized currency, Ethereum makes it possible to create decentralized apps or dapps with the help of the smart contracts. These contracts allow executing the deal between two parties basing on the programmatic approval rather than on any third-party surveillance.
Another difference between two currencies is that in order to buy Bitcoin with Ethereum you will need the gas to pay the commission. The amount of gas you have to pay depends on the network overload.
What is Bitcoin mining algorithm?
The algorithm named Proof-of-Work or PoW underlies the Bitcoin technology. The specialized mining equipment is consuming electricity and solves computational problems in order to find the blocks. These blocks make up a united chain as they are linked between each other. The miner who discovers the new block gets a reward in bitcoins.
Each block serves as a public ledger allowing participants of the network to write the information about transactions into these blocks. The transactions are irreversible and visible to anyone on the web which makes bitcoin network a secure and transparent way to make payments.
What is Ethereum mining algorithm?
If you’ve decided to convert Bitcoin to Ethereum for investment purposes only, it’s not obligatory to know the specifics of the technology that underlies these cryptocurrencies. But still, it’s always better to understand where you place your money. Ethereum’s mining algorithm is pretty similar to Bitcoin’s as it is also based on PoW, but the whole blockchain is absolutely different.
It’s not possible to mine Ether on ASICs which means a single company cannot monopolize coins production by purchasing a whole set of this equipment. Ether can be obtained on a GPU or a CPU and it’s not profitable to mine ETH in the mining pools while making profits on Bitcoin mining is now only possible if you join a big group of miners.
Also, Ethereum’s creator Vitalik Buterin declared his plans to move Ethereum to PoS (Proof of Stake) algorithm which allows getting a reward basing on the number of coins you possess rather than on electricity expenditure and purchasing costly equipment. If this goal will ever be reached Ether will most likely soar in price and it would be wise perform Bitcoin to Ethereum exchange before this date.
Mind the coins’ supply before you decide to trade bitcoin to ethereum.
The circulating supply of Ethereum equals to 17,722,225. Its maximum supply equals to 21,000,000.
For Bitcoin, the circulating supply equals to 106,221,178, while its maximum supply equals to emission infinite.
If you want to use our bitcoin to ethereum converter,also pay attention to the market capitalization.
For Ethereum, the current market capitalization equals to $142,709,917,866.00. Bitcoin’s capitalization equals to $26,744,980,613.00.
Volume of transactions
During the last 24 hours, Ethereum’s volume of transaction made up $22,045,452,992.53. For Bitcoin, this index equals to $8,802,280,288.64.