Bitcoin vs. Ethereum: What’s the Difference

 Bitcoin vs. Ethereum: What’s the Difference

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Bitcoin vs. Ethereum: An Overview 

Ether (ETH), the cryptocurrency of the Ethereum network, is the second most popular digital token after bitcoin (BTC). As the second-largest cryptocurrency by market capitalisation (market cap), comparisons between Ether and bitcoin are only natural.1

Ether and bitcoin are similar in many ways: Each is a digital currency traded via online exchanges and stored in various types of cryptocurrency wallets. Both of these tokens are decentralised, meaning that they are not issued or regulated by a central bank or other authority. Both make use of the distributed ledger technology known as blockchain.

However, there are also many crucial distinctions between the two most popular cryptocurrencies by market cap. Below, we’ll take a closer look at the similarities and differences between bitcoin and ether.


  • Bitcoin signaled the emergence of a radically new form of digital money that operates outside the control of any government or corporation.

  • With time, people began to realise that one of the underlying innovations of bitcoin, the blockchain, could be utilised for other purposes. 

  • Ethereum proposed to utilise blockchain technology not only for maintaining a decentralised payment network but also for storing computer code that can be used to power tamper-proof decentralised financial contracts and applications.

  • Ethereum applications and contracts are powered by ether, the Ethereum network’s currency.

  • Ether was intended to complement rather than compete with bitcoin, but it has nonetheless emerged as a competitor on cryptocurrency exchanges.

Bitcoin Basics

Bitcoin was launched in January 2009. It introduced a novel idea set out in a white paper by the mysterious Satoshi Nakamoto—bitcoin offers the promise of an online currency that is secured without any central authority, unlike government-issued currencies. There are no physical bitcoins, only balances associated with a cryptographically secured public ledger.

Although bitcoin was not the first attempt at an online currency of this type, it was the most successful in its early efforts, and it has come to be known as a predecessor in some way to virtually all cryptocurrencies that have been developed over the past decade.

Over the years, the concept of a virtual, decentralised currency has gained acceptance among regulators and government bodies. Although it isn’t a formally recognised medium of payment or store of value, cryptocurrency has managed to carve out a niche for itself and continues to co-exist with the financial system despite being regularly scrutinised and debated.

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Key Differences

While both the Bitcoin and Ethereum networks are powered by the principle of distributed ledgers and cryptography, the two differ technically in many ways. For example, transactions on the Ethereum network may contain executable code, while data affixed to Bitcoin network transactions are generally only for keeping notes. Other differences include block time (an ether transaction is confirmed in seconds, compared to minutes for bitcoin) and the algorithms on which they run: SHA-256 for Bitcoin and Ethash for Ethereum.

Both Bitcoin and Ethereum currently use a consensus protocol called proof of work (PoW), which allows the nodes of the respective networks to agree on the state of all information recorded on their blockchains and prevent certain types of economic attacks on the networks.11 In 2022, Ethereum will be moving to a different system called proof of stake (PoS) as part of its Eth2 upgrade, a set of interconnected upgrades that will make Ethereum more scalable, secure, and sustainable.

A major criticism of proof of work is that it is highly energy-intensive because of the computational power required. Proof of stake substitutes computational power with staking—making it less energy-intensive—and replaces miners with validators, who stake their cryptocurrency holdings to activate the ability to create new blocks.

More importantly, though, the Bitcoin and Ethereum networks are different with respect to their overall aims. While bitcoin was created as an alternative to national currencies and thus aspires to be a medium of exchange and a store of value, Ethereum was intended as a platform to facilitate immutable, programmatic contracts and applications via its own currency. 

BTC and ETH are both digital currencies, but the primary purpose of ether is not to establish itself as an alternative monetary system but rather to facilitate and monetise the operation of the Ethereum smart contract and dApp platform.

Ethereum is another use case for a blockchain that supports the Bitcoin network and theoretically should not really compete with Bitcoin. However, the popularity of ether has pushed it into competition with all cryptocurrencies, especially from the perspective of traders. For most of its history since the mid-2015 launch, ether has been close behind bitcoin on rankings of the top cryptocurrencies by market cap.1

The Ethereum ecosystem is growing by leaps and bounds, thanks to the surging popularity of its dApps in areas such as finance (decentralized finance, or DeFi apps), arts and collectibles (non-fungible tokens, or NFTs), gaming, and technology. This has enabled ETH to surge 510% in 2021 (as of Nov. 29, 2021), compared with a 93% gain for BTC. As a result, while ETH’s market cap was only about one-tenth of BTC’s in January 2020, ETH’s market cap of $528 billion was about one-half that of BTC’s $1.08 trillion as of November 2021.

What is the main difference in application between Bitcoin and Ethereum?

Bitcoin is primarily designed to be an alternative to traditional currencies and hence a medium of exchange and store of value. Ethereum is a programmable blockchain that finds application in numerous areas, including DeFi, smart contracts, and NFTs.

Why is Bitcoin compared to digital gold and Ethereum to digital silver?

Bitcoin is compared to digital gold because it was the very first cryptocurrency and is the biggest with a market cap exceeding $1 trillion, while its limited supply (the maximum number of Bitcoins that can be mined is 21 million) may ensure that it retains value. Ethereum is compared to digital silver because it is the second-largest cryptocurrency by market cap and, like the precious metal, has a wide variety of applications.

What are Bitcoin’s and Ethereum’s shares of the crypto market?

As of Nov. 29, 2021, Bitcoin had a market cap of $1.08 trillion, accounting for about 48% of the total cryptocurrency market, which was valued at just over $2.25 trillion.13 Ethereum, with a market cap of $528 billion, had a market share of 23.4%.

How many BTC and ETH are currently in circulation?

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SIP Mutual Funds Investment Book

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Systematic Investment Plan (SIP) is an Investment route offered by Mutual Funds wherein one can Invest a fixed amount in a Mutual Fund scheme at regular intervals– say once a month or once a quarter, instead of making a lump-sum Investment.

SIP stands for Systematic Investment plan, and it is a way to Invest a fixed amount regularly in mutual fund schemes. It is similar to a Recurring Deposit (RD) in a bank. In SIP, an Investor selects a period (1 year, 3 years or even perpetuity), intervals (weekly, monthly, quarterly etc.) and amount. The amount will auto-debit from the Investor’s bank account after every interval for a selected period. As retail Investors’ participation has been increasing in mutual funds, SIP is also gaining popularity amongst them. But still, most of the retail Investors are still unaware/unclear about Systematic Investment Plan (SIP). So, below we have explained the benefits of SIP.

Pros of SIP:

Rupee Cost Averaging

This is the primary benefit of Investing in mutual funds via SIPs. Rupee cost averaging is a phenomenon in which an Investor continues to Invest a particular amount at fixed intervals regardless of the share price/NAV. An Investor receives more units when the NAV of a mutual fund scheme decline and fewer units when NAV of the scheme rises. Therefore, over a long period of time, the cost of units to Investors will be significantly lower despite volatility.

Disciplined Investing

By committing to Invest a particular amount at a fixed interval for a particular period of time, Investors instill discipline in their character, which is essential for building wealth in long term.


Investors can decide the amount, period and interval of SIP as per their convenience. Besides, they can increase, decrease or stop the SIP in a mutual fund anytime.

Cons of SIP:

SIP returns are lower in consistently rising markets:

Imagine this situation – Its New Year eve of 2009 and your rich uncle impressed by you & your cousin gifts both of you Rs 1 Lac. You both being financially prudent want to grow this windfall. You approach a financial planner and as every good planner would, he recommend you to Invest in NIFTY BeeS using SIP. So you follow him and plan Investment in 12 monthly SIP installments while your cousin puts his entire money as lump sum Investment in the same NIFTY BeeS. Who do you think made more money by 2010 New Year eve? Your cousin would have around Rs 1.72 Lac while you would have Rs. 1.37 Lac. So your cousin gained 25% more just by doing lump sum.

Limited options of dates:

For a SIP in Mutual Fund you need to decide a date in advance when you like to do your SIP and give an ECS mandate for the same. Most of the MFs have limited option (mainly 1st, 5th, 7th, 10th, 15th, etc). So you tend to Invest in multiple mutual funds on the same date. You want to lessen your risk by spreading your SIP in the entire month by choosing different dates for different funds.

Fixed Amount:

There are times when you feel that markets are undervalued and you want to Invest more but then in SIP only a predetermined fixed sum gets Invested. Same is the case when you want to Invest less, you can’t do it.

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Best Personal Finance Rules

Best Personal Finance Rules we all should better know.

1) Rule of 72 (Double Your Money)

2) Rule of 70 (Inflation)

3) 4% Withdrawal Rule

4) 100 Minus Age Rule

5) 10, 5, 3 Rule

6) 50-30-20 Rule

7) 3X Emergency Rule

8) 40℅ EMI Rule

1) Rule of 72

No. of yrs required to double your money at a given rate, U just divide 72 by interest rate

Eg, if you want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 yrs

At 6% rate, it will take 12 yrs

At 9% rate, it will take 8 yrs

2) Rule of 70

Divide 70 by current inflation rate to know how fast the value of your investment will get reduced to half its present value. 

Inflation rate of 7% will reduce the value of your money to half in 10 years.

3) 4% Rule for Financial Freedom

Corpus Reqd = 25 times of your estimated Annual Expenses.

Eg- if your annual Expense after 50 years of age is 500,000 and you wish to take VRS then corpus with you required is 1.25 cr.

Put 50% of this into fixed Income & 50% into equity.

Withdraw 4% every yr, i.e.5 lac.

This rule works for 96% of time in 30 yr period

4) 100 minus your age rule

This rule is used for asset allocation. Subtract your age from 100 to find out, how much of your portfolio should be allocated to equities

Suppose your Age is 30 so (100 - 30 = 70)

Equity : 70%

Debt : 30%

But if your Age is 60 so (100 - 60 = 40)

Equity : 40%

Debt : 60%

5) 10-5-3 Rule

One should have reasonable returns Expectations

10℅ Rate of return - Equity / Mutual Funds

5℅ - Debts ( Fixed Deposits or Other Debt instruments) 

3℅ - Savings Account

6) 50-30-20 Rule - about allocation of Income to Expense

Divide your Income into

50℅ - Needs  (Groceries, rent, emi, etc)

30℅ - Wants  (Entertainment, vacations, etc)

20℅ - Savings  (Equity, MFs, Debt, FD, etc)

At least try to save 20℅ of your Income.

You can definitely save more

7) 3X Emergency Rule

Always put at least 3 times your monthly Income in Emergency funds for emergencies such as Loss of employment, medical emergency, etc. 

3 X Monthly Income

In fact, one can have around 6 X Monthly Income in liquid or near liquid assets to be on a safer side

8) 40℅ EMI Rule

Never go beyond 40℅ of your Income into EMIs. 

Say you earn, 50,000 per month. So you should not have EMIs more than 20,000 .

This Rule is generally used by Finance companies to provide loans. You can use it to manage your finances. 

Very Imp Rule now 

Life Insurance Rule  [Not Recomonded at all] 

Always have Sum Assured as 20 times of your Annual Income 

20 X Annual Income

Say you earn 5 Lacs annually, You should NOT at least have 1 crore insurance by following this Rule

Some True Heart-wrenching stories of women left alone in old age homes

 Some True  Heart-wrenching stories of women left alone in old age homes

Lucky are the ones who have their elder's shadow, unlucky are the ones who have rejected their elders.

Image source.

These are the stories of those elderly mothers who, despite having children, have been rejected by them. The mothers who, despite having a home, rely on the help of others. A son who refuses to help and a daughter who ignores them. Desire to play with grandkids is consistently there yet their arms are vacant. 

Hands vacant, eyes open, lips tremble as they ask only one question, “When will you come to meet me?”

1. Harjeet Kaur.

Image source.

Age 78, has three children. Children work abroad, son in Canada and daughters in Chicago. After her husband's death, the question came up, if we leave mother at home then who will look after her? Kamla Devi Charitable Trust came as an option.

She has epilepsy as well as other stomach issues. The nurses at the Trust administer her medications and look after her. She leans towards living at the Trust instead of her home where nobody resides. She claims she only visits her house to tidy it as it reminds her of her children. 

Every year during the holidays, her children pay her a visit. She misses her husband and children a lot.

2. Kaishalya Devi.

Image source.

Age- 80 years, has one son and five daughters. Kaishalya Devi has lived twenty years alone. Her daughter asked her to go to her son and left her at his house. Kaishalya lived with her son for a year, they gave her food only when she gave ₹1000 per month. Whatever cash she used to get was taken by her child.

Until she gave cash, she was a mother however when she quit giving cash, Kaishalya was beaten by her girl in-law, child and grandson.

She had 60-70 thousand rupees with her, her children asked that she offer it to them however she didn't. They beat her, tore her clothes, and took all her money when she refused to give them money.

She had nowhere to go but die, people stopped her from doing so. Kaishalya lived alone on rent for a while after selling her house. After that she was left in an Ngo by her neighbours. No one came meet her.

3. Virmala Chauhan.

Image source.

Age 66 years, has five children, three daughters and two sons. Husband died from brain cancer. “Why do you just say, why don't you leave forever?” her sons asked Virmala after her husband's death. It struck Virmala's heart like an arrow, causing her to flee her home and seek refuge in an Ashram.

They come to visit her at times, according to her it's better this way. She yearns for their love but when it came to her respect she'd chose the latter.

4. Sushila Jain.

Image source.

73 year old, has three children- a son and two daughters. Sushila’s daughter-in-law asked, either she will live in the house or Sushila. To maintain peace Sushila left her house and came to live in ashram

She raised her son with all the love and care but was rejected by his wife and left alone. Her daughters doesn't know that she lives in the ashram neither does her son. 

5. Jitendra Kaur.

Image source.

70 year old, suffers from memory disorder. Has two sons, one lives in Dubai and the other in Ludhiana. She was removed by her first son after taking all her property.

The younger son told the authorities that after his wife's treatment he would come back to take her mother, but he never came.

6. Vimal Anand.

Image source.

Age 80 years, has two children, a son and daughter. She suffers from cerebral atrophy, which has limited the ability of speech and reasoning. Her son is a doctor in America and lives there, it's the reason she was sent to Vardaan senior citizen home. Daughter lives in Delhi, she visits her regularly yet because of her own family she can't live with her mom.

So many of our elderly population are forgotten about or disregarded. One day we will all be where they are. Is this how we will want to be treated?Our elderly deserve to be honoured and respected!

On the off chance that you run into any senior citizen in anguish, you can contact any of the accompanying NGOs for help:

Phone: 6138 1100


Phone: 9436123069


Email: Help@Ashakiranashram.Org

Phone: +91-8700851044


Phone: 9868124124


Financial Help for Seniors In India: 20 Resources.