Bitcoin (BTC) and Ethereum (ETH) are the biggest names on the crypto landscape. So, no wonder they are frequently compared with one another. While these cryptocurrencies are similar in many ways, there are critical differences that set them apart. Does Ethereum make a good competitor to Bitcoin? In this article, we’ll consider whether you should invest in ether or rush to convert your ETH to BTC this year.
How Does the Merge Impact ETH Competitiveness?
A major, long-awaited event in the crypto world took place on September 15, 2022, when Ethereum successfully executed an upgrade to its blockchain technology, also known as the Merge. This change is going to make a huge impact on the future of the cryptocurrency landscape.
The whole point of the Merge is Ethereum’s transition to proof-of-stake consensus. It became possible by joining the Mainnet, the original execution layer of Ether, with the Beacon Chain, a new consensus layer.
Eventually, this major upgrade might shake up the price of ETH, which, by the way, had already been outpacing BTC in terms of the recent crypto recoveries. The successful Merge will put a strong bid under the ether price. So, many investors agree that it will resume the upward trend and unlock a growing potential for this coin.
What Has Changed
Ethereum is totally on its way to getting closer to its envisioned blockchain network — the one that is more scalable, sustainable, and secure.
Before the Merge, both Ethereum and Bitcoin were powered by the proof-of-work consensus mechanism. This model involved miners competing with one another for a chance to produce the next block of a transaction and mine new coins.
With proof-of-stake, everything has changed. Validators do not have to deal with hefty power bills and invest in processing equipment. All they need is to buy enough ETH tokens to be qualified for confirming transactions and creating new blocks.
To sum it up, the switch to a new consensus model brought the following advantages:
- Ethereum has become more eco-friendly;
- Energy consumption dropped by 99.95%;
- The ground for upcoming scalability upgrades has been built.
Bitcoin still uses miners to verify transactions and blocks. The energy required for converting power into coins leads to hefty operating expenses. A new Ethereum proof-of-stake system is designed to reduce the environmental impact of crypto. This, undoubtedly, makes it more attractive to socially-conscious investors.
Comparing Ethereum and Bitcoin
To give you a better idea of how Ethereum compares to Bitcoin in basic numbers and characteristics, let’s see a comparison table.
| Bitcoin / BTC | Ethereum / ETH | |
| Market cap | $320B | $149B |
| Price | $16,700 | $1,200 |
| Consensus mechanism | Proof-of-work | Proof-of-stake |
| Energy consumption | 200 TWh/y | 0.01 TWh/y (estimate) |
| Average transaction fee | $2.3 | $0.6 |
| Average block time | 10 minutes | 12 seconds |
With faster and cheaper transactions, Ethereum has an edge over Bitcoin. Its move towards sustainability also attracts investors’ attention. All in all, ether has all the chances to become the top crypto in the following years.
Summary
After the Merge, Ethereum has made a huge leap towards becoming a greener blockchain technology. This upgrade riveted the attention of many traders, investors, and market analysts.
Will Bitcoin follow the lead and change to a proof-of-stake consensus mechanism? It’s pretty possible. But we should bear in mind that it won’t happen overnight. It takes years to implement a successful upgrade. Besides, it will require the whole community to agree on the change.
Considering the recent events, we are all curious about the possibility of Ethereum outperforming Bitcoin someday. We’ll see what the new day will bring. If you would like to stay tuned and get real-time information about the trading cost of these coins, use Godex, an exchange platform that cares about your privacy.
