The best base currency to buy should be Ethereum, not Bitcoin-CryptocurrencyMohoagd

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Bitcoin is a value storage, but it doesn't provide anything else to its customers.


It is not surprising that investors are interested in cryptocurrencies such as Ethereum . After all, financial technology have seen a period of rapid innovation. And the cryptocurrency market is one where we've seen tremendous advancement in just a few years. In recent years, cryptocurrencies have exploded, with Bitcoin  leading the trend.


Bitcoin was created in 2009 by an anonymous individual or group of individuals known as Satoshi Nakamoto. When it was first created in 2009, one Bitcoin cost almost nothing — but by November 2021, they were worth approximately $69,000.


While many people are aware of Bitcoin's stratospheric climb, Ethereum has also seen an incredible bull run throughout this time period. Ether's success is nothing short of incredible. The cryptocurrency first appeared in 2015, and by November 2021, it had reached a peak of $4,891.


While both Bitcoin and Ethereum were designed with the goal of becoming the king of cryptocurrencies, they differ in a variety of ways. They've been designed for quite diverse purposes, with internal dynamics that reflect this — Ethereum being substantially more decentralized than its rivals while still retaining some amount of intervention from designers who wish to see it grow into a working economy. Meanwhile, Bitcoin serves primarily as a store of value. It is the forefather of all other cryptocurrencies. As a result, you can't ignore its movements.


Ethereum, on the other hand, is a source of more excitement. Ethereum has proven to be more than just a store of value thanks to smart contracts. These self-executing agreements enable transactions with no downtime or fraud risk, making them an appealing alternative in today's world when practically everything has a cost.


There are also strong near-term catalysts for Ethereum, making it a good buy this year.


Environmental Impact of Cryptocurrency


Because of the possible impact on national currencies and taxation systems, the international community has been wary of Bitcoin. El Salvador, for example, took a different path, recognizing it as legal tender last year. In order to transition to a digital version of their currency, China prohibited cryptocurrency mining and all kinds of crypto in 2021.


The electricity utilized to mine Bitcoin is extremely inefficient. It consumes a tremendous amount of energy. The process only increases with time as more people continue to use it, potentially causing problems for our ecosystem for decades if nothing is done soon enough. Bitcoin currently consumes about 0.5% of all electricity consumed globally — more than several countries.


Bitcoin employs a consensus technique known as proof of work (PoW). Participants in this system must answer complex mathematical equations. Solving these issues demonstrates that enough computational power has been invested.


Many members of the Ethereum community have been eagerly awaiting the implementation of a new consensus mechanism known as proof of stake (PoS). This shift was originally envisioned as a crucial aspect of scaling up this blockchain with its impending Eth2 upgrades by the development team. And now we're starting to see some results. With the transition from PoW to PoS, we can finally expect quicker speeds and lower transaction costs.


As it transitions from one protocol version to another, Ethereum will become cleaner and better for our world. As a result, Ethereum's adoption rate will rise in comparison to Bitcoin's.


Ethereum: Its Potential and Applications Could Be Limitless


Unlike Bitcoin, which is solely useful for keeping wealth and as an investment instrument, Ethereum has limitless potential. Ethereum is the platform of choice for nonfungible tokens (NFTs). It also brought decentralized finance with varied smart contract features, allowing participants to construct contracts without the intervention of a third party.


Smart contracts may hold the key to the future of decentralized autonomous organizations (DAOs). These virtual organizations could take the role of traditional businesses and operate without the need for human or institutional interaction, engaging in economic transactions such as buying and selling things, allowing them to become more profitable than before. The concept of a DAO is still in its early stages. However, Ethereum-based decentralized applications (Dapps) are now being built.


These stand-alone applications make use of smart contracts and operate on the Ethereum Virtual Machine (EVM). Decentralized applications have enormous potential. Without relying on a central server to enable transactions between players or customers, gaming, shopping, and banking may become trillion-dollar companies. This will continue to drive Ethereum's value higher in the future.


The Shift to Ethereum 2.0


In 2022, Ethereum intends to abandon mining in favor of a new proof-of-stake architecture. Users will no longer be able to validate transactions based on their coin holdings, as they do now, instead than employing energy-intensive rigs. Although it cannot come soon enough for investors, this is a significant shift. A series of improvements are being implemented, which will culminate in the summer.


Arrow Glacier is the most recent update in a lengthy line. The developers intend to implement a "difficulty bomb" to encourage people to move away from proof-of-work mining. The delay in migrating to the new network gives developers more time to work on the platform before switching over. It is an important aspect of the Ice Age update. However, keep a look out for more developments in the run-up to the transfer. They will have a significant impact on the price of ether.


Ethereum Is the Clear Winner


It's fascinating to see how BTC and ETH compare. While both began as cryptocurrencies, one is regarded as more widespread than the other (ETH). Furthermore, Bitcoin has little utility and performs poorly when compared to the major altcoins. Though there are numerous reasons why people may pick between these two coins, what matters most is which cryptocurrency you invest in — since if history repeats itself, tomorrow may bring even higher values for this asset class!


Why is ETH such a sought-after cryptocurrency? The solution could be found in its potential to address certain major pain points in the cryptocurrency sector. Ethereum is aiming to address its efficiency and cost concerns, while also starting from a smaller foundation than BTC, giving it more room for growth. Its dominance in DeFi and the rapidly expanding NFT area are icing on the cake. When the two are compared, Ethereum is what you need in your portfolio this year.


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