Here’s one of the most common questions I get asked these days:
What’s the difference between Bitcoin and Ethereum?
Many investors assume they’re similar. For example, they might think that one is like the U.S. Dollar, and the other is like the Japanese Yen.
But that assumption couldn’t be further from the truth.
So today I’ll explain the key differences between these two crypto-currencies…
Then I’ll show you which one could give you the greatest shot at long-term profits.
How They’re Similar
Before I get into the differences between Bitcoin and Ethereum, let me explain their similarities.
For starters, they’re both crypto-currencies.
Crypto-currencies are digital currencies — that means you can’t hold them in your hands. Instead, they’re stored online.
Furthermore, instead of storing your Bitcoin and Ethereum in a single location (for example, at your bank), both are stored across thousands of different computers. That way, even if one computer gets hacked or goes offline, your money can remain safe and secure.
Finally, both Bitcoin and Ethereum are stored in an encrypted format.
This encryption enables you to hold your money anonymously — which makes it very challenging for a government to come along and take it.
How They’re Different
But Bitcoin and Ethereum also have many differences.
You see, Bitcoin was created to help people store value online…
Whereas Ethereum was created to help people transact online.
More specifically, Ethereum leverages a special technology known as a “Smart Contract.”
This technology enables users to easily transfer money from one party to another.
For example, let’s say I want to send you $500 of bitcoin as payment for a project you did…
In order to send you that bitcoin, I need to log into my bitcoin account, select the amount of bitcoin I owe you, and then enter your bitcoin account address.
That’s a lot of effort for a single, small transaction.
But with a Smart Contract, I could have Ethereum transferred to you automatically as soon as the project is complete…
I wouldn’t have to log in anywhere — in fact, I wouldn’t have to lift a finger.
Everything would happen on its own.
What’s the Big Deal?
Perhaps you’re wondering why that’s such a big deal…
Well, here’s the thing:
Automated Smart Contracts could help save various industries billions of dollars:
For example, think about how much time and money are wasted on basic banking transactions like Escrow…
Or think about the manpower that’s involved in trading stocks: just picture all the frenzied people who still work on the floor of the New York Stock Exchange!
By using technologies like Ethereum Smart Contracts, such transactions could be entirely automated — and that would save financial institutions a fortune.
This explains why some of the world’s largest banks (including Citigroup and JP Morgan) have banded together and invested more than $50 million to help develop Smart Contracts.
This is Where the Profits Are
All the recent excitement about Smart Contracts is helping drive Ethereum’s price higher.
You see, Smart Contracts need “fuel” to make them work…
And the fuel they use is Ethereum.
So the more Smart Contracts there are, the more demand there is for Ethereum.
And that is why the price of Ethereum has been going up all year.
Basically, as the use of Smart Contracts has grown — and as established entities like giant global banks develop new applications for them — demand for Ethereum keeps going up…
Which in turn has caused its price to soar!
1,000% Profits in Less Than 90 Days
This explains why, a few months ago, I recommended that you buy Ethereum.
Back then it was trading around $40…
A few months later, it hit $400.
If you’d followed our advice, you could quickly have cashed out for a nearly 1,000% gain…
That’s 10x your money.
But don’t worry if you missed out on that opportunity:
We believe the market for Smart Contracts — and in turn, the market for Ethereum — is poised to grow dramatically in the years to come.
That being said, its price is affected by many factors. It’s a volatile asset, and you need to understand that its price is a moving target.
At the moment, I’m not buying more Ethereum. It currently trades at about $300.
But based on my current analysis, when it drops below $200 again, I’ll be adding to my long-term position.
Happy investing.
Best Regards,
Founder
Crowdability.com
