What is the difference between Bitcoin ICO and Ethereum ICO?
Valentine First, it’s important to understand that there are two categories of digital coins: Cryptocurrencies (e.g. Bitcoin, Litecoin, ZCash, Monero, etc) and Tokens (e.g. Ethereum, Filecoin, Storj, Blockstack, etc.)
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Bitcoin is a “Cryptocurrency”
Bitcoin and other cryptocurrencies are competing against existing money (and gold) to replace them with a truly global currency.
The promise of Bitcoin is that it is:
- A global currency which allows individuals to own their own money (without having to rely on national banks).
- Lower fees for transferring money across geographic borders.
- Financial stability for people who live in countries with unstable currencies. (e.g. In 2016, Venezuela’s currency hit an inflation rate of 800%). In addition, two-thirds of the current global population has no access to banking or limited access — Bitcoin is changing that.
Ethereum is a “Token”
What Bitcoin does for money, Ethereum does for contracts. Ethereum’s innovation is that it allows you to write Smart Contracts: basically, any digital agreement where you can say “if this” happens, “then something else happens.” For example:
- If I vote for the President, then my vote is official and no one else can vote as me.
- If I sign my name on this document, then I own the car, and you no longer own the car.
- Up until now, we’ve carried out these agreements with a signature at the bottom of a paper document. Ethereum dramatically improves this model because it is digital, and proof of the transaction can never be deleted.
Bitcoin vs. Ethereum: Side by Side Comparison
Bitcoin itself is two things: (1) it’s a digital currency known bitcoin (lowercase, also referred to as BTC) and Bitcoin is a technology (also known more generally as blockchain). Both are called the same thing which admittedly can be confusing for newbies.
- Bitcoin = The name of the Bitcoin network
- bitcoin = The currency (or BTC)
With Ethereum it’s similar but slightly different: the token is called ether (or ETH) and the network is Ethereum.
- Ethereum = The Ethereum network
- ether = The token (of ETH)
How Much Does BTC and ETH Cost?
You can visit Coinmarketcap anytime for the latest price of BTC and ETH.
It’s important to know that you don’t have to buy one entire BTC or ETH, you can buy a smaller percentage of either.
Bitcoin vs. Ethereum: How Many Tokens are Available?
For Bitcoin, the total supply cap is set at 21 million. At the moment, according to CoinMarketCap, the circulating supply is around 18,586,737 BTC.
A new BTC is generated approximately every 10 minutes. And after 2140 no more new bitcoins will be created, which is why Bitcoin is said to be deflationary (the opposite of inflation).
When new bitcoins are created miners compete to get them. Miners are people with can play one of two possible roles: they use their computers to claim new bitcoin and/or they help verify transactions on the network — much like a bookkeeper.