Bitcoin and Ethereum, the two cryptocurrency giants, have been competing for the status of currency in the market. Who is most likely to become the currency of Bitcoin and Ethereum? This question concerns the hearts of global investors. We will explore this issue in depth and analyze the future trends of Bitcoin and Ethereum from multiple perspectives such as technology, market, and society.

Bitcoin vs. Ethereum: Technical Differences

As the first cryptocurrency to apply blockchain technology, Bitcoin's core purpose is to become a decentralized and tamper-proof digital currency. Its technical framework is relatively simple and is mainly used for value storage and value transfer. In contrast, Ethereum pays more attention to the development of smart contracts and decentralized applications, and has stronger programmability. This technical difference leads to differences in their currency attributes and application scenarios.

Bitcoin's currency attributes

Bitcoin is known as digital gold, with the characteristics of scarcity, immutability, and decentralization. Its total issuance is limited, and as the difficulty of mining increases, the output speed of new Bitcoins gradually slows down, thereby increasing its investment value. In addition, Bitcoin has been widely recognized worldwide and has become a safe-haven asset and a means of storing value.

Application scenarios of Ethereum

Ethereum focuses more on the development of smart contracts and decentralized applications. Various decentralized applications can be run on its blockchain, such as DeFi (decentralized finance), NFT (non-fungible tokens), etc. This makes Ethereum a more diversified and potential platform, attracting the attention of a large number of developers and investors.

Market performance: Bitcoin's dominance

From the perspective of market value and popularity, Bitcoin has always dominated the cryptocurrency market. As the first cryptocurrency applied to blockchain, it has high market recognition and strong liquidity, becoming a weathervane for the entire cryptocurrency market. Investment institutions and large companies also choose to invest more funds in Bitcoin, further consolidating Bitcoin's position.

Social impact: Ethereum's potential

As a more open and flexible platform, Ethereum has attracted a large number of developers and project teams. Its advantages in the fields of smart contracts and decentralized applications are gradually emerging, bringing great changes to the future fields of finance, art, games, etc. Ethereum's potential is gradually being recognized by the market, and it is expected to become a more widely used digital currency in the future.

Conclusion

Bitcoin and Ethereum each have their own advantages. The former is outstanding in stability and value storage, while the latter focuses more on technological innovation and application expansion. In the future, Bitcoin is expected to continue to maintain its digital gold status, while Ethereum may usher in more opportunities in the fields of smart contracts and decentralized applications. Investors can choose suitable cryptocurrency investment targets according to their own needs and risk preferences to seize the development opportunities of digital currencies in the future. The currency battle between Bitcoin and Ethereum is still quietly ongoing. Let us wait and see and witness the future star of the digital currency world.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Which is most likely to become currency, Bitcoin or Ethereum? Bitcoin or Ethereum has the ability to become the world's first non-sovereign digital currency, however, both cryptocurrencies must overcome some shortcomings to achieve this vision. A recent report analyzes the different paths of Bitcoin and Ethereum to "currency".

The two cryptocurrencies ranked in the top two in total market value want to become currencies, mainly depending on how they define "currency". The report wrote: Bitcoin's approach is to focus on consolidating its monetary base, while Ethereum focuses on increasing the total amount of currency.

Source of funds: Inverse pyramid to layer currency

The report pointed out that there is no single definition of currency. As can be seen from the figure above, different layers have different needs for trust and liquidity in currency. Bitcoin focuses first on the monetary base, while Ethereum focuses mainly on monetary utility.

Bitcoin advocate Anthony
Pompliano said in his recent blog that the idea behind the concept of "Ethereum is currency" is fundamentally flawed. He believes that Ethereum is no different from fiat currency because it is similar to fiat currency and has no fixed supply. He further pointed out that Ethereum's monetary policy is determined by a small group of individuals, which also fully reflects the function of fiat currency.

Meanwhile, David Hoffman, co-host of the Crypto POV podcast, explained in a recent article why he believes Ethereum will become money. He noted that Ethereum’s applications will eventually help Ether become an organic engineering and eventually a currency.

In the long run, “if Bitcoin can survive its hard-coded monetary policy and Ethereum can prove that it can gain monetary value on a constantly changing monetary basis,” then Bitcoin and Ethereum do have the ability to become the world’s first digital currency without any government involvement. The upcoming ETH 2.0 upgrade may increase the possibility of Ethereum becoming a currency in the future.

The report concludes that both Bitcoin and Ethereum must create pockets of circular economy and cannot rely on “excessive hype.” The report reads:

For Bitcoin in particular to establish itself as a monetary foundation in the future, Bitcoin users need to start treating Bitcoin, Satoshi, as a natural unit of account.

All fiat currencies are centralized and cannot compete with a fixed supply of 21 million. Therefore, other currencies cannot compete with trustless Bitcoin, whose total supply does not change. The question of “how is Bitcoin different from all other forms of money?” is still under debate.