Bitcoin remains the best known and most valuable cryptocurrency. But some experts believe that in the long term, Ethereum is the better choice. A market cap of around $200 billion makes it second only to Bitcoin in terms of scale, but size, we are often reminded, is not everything. Here, we look at some compelling reasons to give Ethereum serious consideration.
Smart contracts
Bitcoin was the first cryptocurrency and paved the way for the rest. As such, it inevitably has more limitations, and these could come home to roost in the months and years ahead. The idea behind Bitcoin was to allow decentralized payments, meaning peer to peer transactions without the need for an intermediary such as a bank.
Ethereum takes this a step further. Why just settle for peer to peer payments when the blockchain can facilitate the exchange of products or services by smart contracts? It can make large scale transfers of ownership such as property transactions faster and more secure while obliterating all those middleman fees.
Better sustainability with proof of stake
It is widely understood that Bitcoin mining is hugely energy intensive. It relies on a proof of work system, the details of which we won’t get bogged down in here. Suffice it to say it involves immense computational power, which only increases over time. Not only is this completely at odds with today’s emphasis on reducing carbon emissions, it has also taken Bitcoin mining beyond the reach of most hobbyists.
Ethereum uses an entirely different system called “proof of stake,” whereby you have virtual validators instead of physical miners. These use Ether as a stake with which to “bet” on which blocks will be next on the chain. Those who make the right call are rewarded with a block on the chain proportionate to their stake.
The big advantage of proof of stake is that it does not demand the massive energy that is involved with proof of work. The energy used to mine one Bitcoin could power the average household for two days. As well as being a positive change from an environmental perspective, proof of stake also means there are much lower costs involved.
Wider adoption in crypto casinos and beyond
Until recently, Bitcoin and crypto were almost synonymous in many people’s minds. Lack of mainstream adoption turned people away from altcoins like Ethereum. Times, however, are changing and online casinos provide a perfect example.
Now Bitcoin casinos have been around for years. The first ones were seen as little more than a novelty, but then, a growing number of well known casino brands started adding BTC to their payment options. Now other cryptocurrencies are also starting to appear. For example, PlayAmo casino willingly accepts Ethereum.
Transaction speed
As things stand today, Ethereum is slightly faster than Bitcoin. It generally processes 10-15 transactions per second, compared to between three and five for Bitcoin. That’s not a huge difference, but when Ethereum 2.0 is finally launched next year, expect it to be significantly faster.
