For cryptocurrency traders perhaps one of the biggest challenges resides in selecting between Bitcoin and Ether. Reports from Investopedia, a financial media platform, include that currently Bitcoin and Ether are among the popular digital currency. As per CoinMarketCap, a crypto price-tracking platform, the current market value of Bitcoin stands at $28,425.16 (April 26, 2023, 08:40 am IST) and Ether stands at $1,868.09(April 26, 2023, 08:40 am IST).
Initially, both cryptocurrencies were made to store and preserve data in a secure manner. With time, people began to realise that more things could be done with the help of this programmable money. Vitalik Butalin, creator of Ethereum, realised that Bitcoin has limitations and so he created his own crypto Ether (ETH). Eventually, Ethereum opened a new way of working with digital currencies by using the working mechanism of Proof-of-Stake (PoS). In a conversation with FE Blockchain’s Poulami Saha, Rajagopal Menon, Vice President, WazirX, talks about currently which crypto is better to invest in. (Edited excerpts)
What makes Bitcoin popular among other cryptos?
Digital currency was introduced in the ’90s. By then people already started experimenting with cryptocurrencies. However, in 2008, Satoshi Nakamoto introduced us to a digital currency that could provide safety and help solve many other problems. Bitcoin is considered as one of the oldest cryptocurrencies. What makes Bitcoin special is that Satoshi Nakamoto created it and left it for growing organically. Apart from that Bitcoin works in a decentralised manner which might not be easy to hack when it comes to safety. Also, its Proof-of-Work (PoW) mechanism adds to its security. Moreover, we can say that Bitcoin is popular for its authenticity.
Can the working mechanism of Bitcoin affect its popularity, when it comes to the ability to adapt to changes?
Adaptation to changes may need the involvement of many hands, which might affect the security of these networks. However, Bitcoin’s decentralised working mechanism does not allow such involvement. Since its creation, nothing has changed and no one can control it. Probably, this makes it one of the safest networks in the blockchain. Therefore, Bitcoin has been able to provide some sort of assurance to its users which I guess contributes to its popularity.
Ethereum is supposed to be more versatile then why it’s still in the second position?
The working mechanism of Ethereum which is Proof-of-Stake (PoS) makes it very adaptive to new technologies such as smart contracts and decentralised applications (dApps) among others. But Ethereum is also considered just as a security network by many. It is a security network that might fluctuate due to its unknown scalability. However, Bitcoin has become more of a commodity. The users are more comfortable using Bitcoins due to their unchangeable monetary value. It is already known that there are about 21 million Bitcoins and its monetary policy can’t be changed.
With the adoption of automatic technologies and smart contracts do you think Ethereum will lead the crypto market?
The future of cryptocurrency is quite unpredictable as crypto is a constantly evolving space and the popularity of these cryptocurrencies depends on the purpose that it is used for. Bitcoin promises strong security and storing values and Ether can be considered as the ‘Future of the financial system’. Reportedly, the current Shanghai upgradation seems to have contributed to the popularity of Ether. Experts believe that Ethereum with constant upgradation could create an impact in the long run.