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There are many benefits to owning bitcoin or ethereum, from the ability to make crypto payments, to their investment potential and portfolio diversification. Both assets function independently of traditional, centralized markets, which affords them greater flexibility, speed, security and privacy. Bitcoin and Ethereum are both leaders in the crypto ecosystem, but offer different characteristics and protocols that appeal to different investor and user profiles. It is important to recognize that both cryptocurrencies offer much more than investment potential, which extends to greater financial inclusivity in regions poorly served by traditional centralized systems.
In this article, we take a closer look at the benefits of owning bitcoin or ethereum, and how ForumPay is helping to strengthen the crypto ecosystem by facilitating payments with Bitcoin and Ethereum, among other popular crypto assets.
What is the difference between Bitcoin and Ethereum?
Bitcoin and Ethereum are both decentralized blockchain networks with native cryptocurrencies: bitcoin and ether. Both digital assets serve different purposes and therefore can appeal more to different users, although many people own both cryptocurrencies given their complementary roles in the crypto ecosystem. Bitcoin primarily acts as a store of value, and is often referred to as “digital gold”, given its similarity with this precious metal —a limited-supply asset, which enhances its stability and appeal as a hedge against inflation.
Ethereum on the other hand has a more functional design that enables the creation and execution of decentralized applications (dApps), NFT (Non-Fungible Token) marketplaces and smart contracts, making it a versatile platform. Ether (ETH), the cryptocurrency, is often described as “digital silver”. While Ethereum’s crypto supply is not capped like Bitcoin’s, its value is derived from its extensive utility within the blockchain ecosystem.
The benefits of crypto payments
Another significant benefit of owning bitcoin or ethereum is the ability to make crypto payments. Despite the fact that Bitcoin was originally designed to serve as a means of payment, today its popularity is often surpassed by other cryptos, such as Tether (USDT) and Litecoin (LTC), when it comes to everyday payments. Ether (ETH) can also be used for crypto payments, although is generally found to be a less popular currency as transaction fees (known as gas fees) can be higher.
Compared to more traditional online payments —using credit or debit cards— crypto payments are faster, more cost-effective, and offer greater privacy and security. Given that all crypto transactions are processed on decentralized networks (blockchains), they can be sent and received at any time of day or night, and on any day of the year. Traditional payment processing is often encumbered by restricted opening hours, making it hard to send money at the weekend, for example.
Crypto payments also do not contain any personal information such as the payer/payee’s name or location. This makes them a popular means of exchange for higher-value purchases, such as real estate, or when users prefer to maintain their privacy. Blockchains themselves function as public ledgers, allowing public access to all transaction records, which only display the anonymous wallet addresses of the sender and receiver.
Many people around the world face great difficulty in gaining access to financial services, such as traditional banking, due to geographic limitations, lack of identification, or insufficient income. Cryptocurrencies, such as Bitcoin and Ethereum, offer financial inclusion, by enabling anyone with internet access to make payments (even across borders) without the need for a bank account, empowering individuals in poorly served regions.
Investment potential
Both Bitcoin and Ethereum have proved to be worthwhile investments for many users since their creation in 2009 and 2015 respectively. Despite the fact that they have both delivered long-term returns, they are both highly volatile assets that require a strong risk tolerance from investors. Bitcoin and Ethereum are equally as unpredictable. Like any asset, the crypto market is influenced by supply and demand and macroeconomic trends such as inflation and interest rates.
But both cryptocurrencies are also influenced by market sentiment, such as the news, media coverage, and prominent figures (e.g., Elon Musk and Donald Trump). Following the recent Presidential elections in the United States, the crypto market reacted with a surge of enthusiasm, with Bitcoin soaring beyond $82,000 for the first time, marking a historic ATH. Bitcoin and Ethereum are also influenced by institutional adoption and changes in crypto regulation, as seen with the approval of spot Bitcoin and Ethereum ETFs in 2024, which fueled interest and increased investment from more traditional portfolios.
Using Bitcoin and Ethereum to pay for goods and services with ForumPay
ForumPay is a crypto payment gateway that strengthens the crypto payments ecosystem by enabling seamless transactions between crypto holders and merchants, even if those businesses have not directly integrated crypto payments. Our solution allows customers that use Bitcoin and Ethereum, as well as other popular cryptocurrencies, to pay for goods and services at traditional businesses without needing those merchants to handle crypto directly.
ForumPay offers consumers greater flexibility and convenience for paying with their digital assets to shop for everyday goods, activities and experiences. We automatically convert crypto payments into the merchant’s preferred currency to ensure they receive funds without worrying about price volatility or the need to onboard crypto payments directly. This bridge between crypto users and non-crypto-enabled businesses helps strengthen the crypto payments ecosystem and encourage broader crypto adoption.
If you are a business or merchant and have yet to start accepting payments in cryptocurrency, book a meeting with our team of crypto payment experts to find out how. Alternatively, visit forumpay.com for more information.
