The main difference between Bitcoin and Ethereum is their use cases.

Simply put, Bitcoin is a store of value, while Ethereum facilitates smart contracts and secure financial transactions.

Although Ethereum was supposed to complement Bitcoin, it has instead become a competitor.

The launch of Bitcoin contributed to the emergence of a new type of digital currency that operates independently of any government or organization.

It is important to note that Bitcoin is centered around a cryptocurrency, while Ethereum is a platform.

Future of Bitcoin and Ethereum:

The difference between Bitcoin and Ethereum was further highlighted with the completion of the Ethereum “merger” update in mid-September.

Both cryptocurrencies previously used a Proof of Work (PoW) mechanism to validate transactions and protect the blockchain.

Although Bitcoin continues to use the PoW mining mechanism, the long-awaited Ethereum upgrade has converted the network to a Proof of Stakes (PoS) mechanism.

The electricity consumption of the Ethereum network is expected to shrink by more than 99% as a result of the move to PoS.

The most serious criticisms against Bitcoin in general are its massive carbon footprint and high energy requirements, which Ethereum now directly addresses but Bitcoin does not.

Investors should keep in mind that moving from one legacy system to another is a difficult process and they should expect some bumps along the way.

According to experts, three things will happen as a result of the latest update on Ethereum:

The merger will reduce the amount of new Ethereum coins created each year by about 70% to 75%, reduce Ethereum’s carbon emissions by 99% or more, and increase the value of the cryptocurrency.

The update attracted investors interested in ESG factors.

This could lead to an influx of institutional funds into the Ethereum ecosystem.

On the other hand, experts expect Bitcoin to reach $100,000 and consider it only a matter of time.

Investors are betting on Bitcoin because it is limited in quantity and therefore its value will increase over time.

Bitcoin is likely to experience short-term volatility and long-term growth.

To conclude:

Bitcoin and Ethereum have more than halved since hitting all-time highs in late 2021.

With crypto winter in full swing, now is the best time to invest wisely in this asset class.

From a practical standpoint, investors should build a well-diversified portfolio.

Bitcoin and Ethereum should be part of this wallet.

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