A Complete Comparison of Hedera Hashgraph Vs. Bitcoin for Novice
- Hedera is ranked 39th in terms of market valuation.
- Hedera is an open source that uses decentralized distributed ledger technology.
Every year, it seems, new cryptocurrencies with new goals and approaches join the market. Therefore, prospective investors need to be aware of the new coin’s value. Here is a comparison between Hedera and Bitcoin.
What is Hedera Hashgraph (HBAR)?
Although it is architecturally significantly different from the Bitcoin and Ethereum blockchains, Hedera Hashgraph is a decentralized distributed network that serves the same purposes. It is based on more effective security and validation algorithms than those used by blockchain networks.
Hedera Hashgraph builds a distributed open ledger utilizing hashgraph technology rather than blockchains. Under the hood, one could discover intricate computational details, some of which are challenging enough to make a computer science Ph.D. wince. The basic conclusion is that for building an open ledger and sustaining a cryptocurrency, hashgraph-based networking provides a viable substitute for blockchains.
Hedera Hashgraph is the only open ledger based on hashgraph technology at the moment. The only hashgraph-based currency is HBAR. However, Hedera’s API calls enable programmers to construct custom tokens that function on the Hedera Hashgraph network by giving clear instructions and source code samples.
What is Bitcoin?
The first cryptocurrency, Bitcoin, was introduced in 2009 by a cryptography pioneer going by the pseudonym Satoshi Nakamoto. This digital currency’s concept is simple, but ground-breaking. It offered a decentralized, open, and accessible financial system as an alternative to conventional money, often known as fiat currency.
A blockchain network is how Bitcoin operates. Using private keys, transactions are carried out between Bitcoin wallets with mathematical confirmation of their validity. A distributed consensus system verifies pending transactions, while cryptography maintains the consistency and chronological sequence of transactions.
The Difference in Market Cap and Daily Transactions
At the time of writing, Bitcoin’s market value was $379.94 Billion, down 67.94%. Despite being considered, it is still ranked first in terms of cryptocurrency market cap and has a market cap domination of 37.933%. At its lowest point in 2013, Bitcoin’s market valuation was $1.2 Billion.
Following a surge in interest in digital assets, 2021 saw the most daily transactions for Bitcoin. Early in 2021, there were around 400000 transactions per day for Bitcoin.
It has a $1.4 Billion market value and a 0.142 % market cap dominance. In sharp contrast to Bitcoin, it is ranked 39th, in terms of market valuation.
More transactions are processed daily by Hedera Hashgraph than those processed by Bitcoin and Ethereum combined. In 2020, the Hedera Hashgraph network handled 1.5 Million transactions per day on average.
Despite the fact that Bitcoin has been around for a long time and is increasingly well-known, there are still hazards for investors. In addition to common risks, like price fluctuations, system outages, and wallet hacks, there is also the possibility of liquidity issues or trouble settling your transactions.
Hedera Hashgraph still has to demonstrate its idea in great detail. As a result, investing in it has the same dangers as doing so with the majority of other cryptocurrencies. Hedera network services might raise issues with product complexity, fees, pricing volatility, and consumer protection.
Bitcoin’s major goal is to continue to evade government control while adhering to some of the required rules and regulations, since it has already established itself as the top cryptocurrency.
Additionally, as Bitcoin becomes more well-known and widely used, developments like the Lightning Network seek to speed up transactions so Bitcoin may gain traction as a mainstream form of payment.
Hedera touts its plan as “audacious but simple,” in addition to continuing to fulfill its objective of offering lightning-fast transaction speeds and acting as the internet’s trust layer. On their website, they lay out a strategy that, for the most part, focuses on decentralization, expanding the network’s functionality, and providing more support for smart contracts.