Bitcoin (BTC) vs. Tron (TRX)

When comparing cryptocurrencies and the multitude of new networks being developed daily, Bitcoin is usually the standard point of comparison. Given that it’s listed on over 130 exchanges, Tron has piqued many investors’ interest – this article will give you an idea of why.

History

Bitcoin

Bitcoin was first introduced to the financial in 2008, becoming the world’s first cryptocurrency. It was created by an individual or group of people under the pseudonym Satoshi Nakamoto, who mined around 1.1 million Bitcoins within the first seven months of its existence. This amount would be worth approximately $2.2 billion in today’s market.

In 2010, the first real-world Bitcoin transaction occurred when a Florida man purchased two Papa John’s pizzas for 10 000 BTC.

Tron

Tron was founded in Singapore in 2017 by crypto celebrity Justin Sun. Shortly before China banned digital tokens, the Tron Foundation raised $70 million through an initial coin offering. Tron got somewhat of a headstart in the cryptocurrency market due to Sun already having a business background and support from large-scale entities.

What Are They, And Why Were They Created?

Bitcoin

Bitcoin, often written as BTC, is a decentralized cryptocurrency native to the internet. Unlike fiat currencies such as the dollar and pound, Bitcoin allows transactions to take place over the internet without a middleman. The Bitcoin transactions are documented on a public ledger known as the blockchain.

It was created in response to the global financial crisis of 2008, effectively as a means to give people more financial freedom and reduce government involvement in transactions.

Tron

Tron is a decentralized platform that’s based on the Tron protocol. Tron’s protocol ensures the equal distribution of computing resources among TRX holders using specific internal mechanisms. According to the Tron whitepaper, the protocol is one of the largest blockchain-based operating systems.

The Tron ecosystem uses Tronix or the TRX token. TRX tokens were created to pay transaction fees in the entertainment sector. Besides covering entertainment industry fees, TRX can be staked to receive network rewards and used by holders to vote on Tron network decisions.

Additionally, the Tron ecosystem was designed to maximize participation in the cryptocurrency market and improve the chances of people benefitting from it.

Price History

Bitcoin

Bitcoin has a reputation for being fairly volatile, as it is primarily based on traders’ feelings and projections within the market. At the time of writing, Bitcoin is priced at $20 734.41, signifying a growth of 30 470.8 percent in the past decade since Bitcoin transactions started gaining momentum.

It peaked in 2021 when a single Bitcoin was worth $69 044.77. Bitcoin’s lowest point came in 2013, with one Bitcoin being worth around $67.81.

Tron

Tron TRX is priced at $0.063195, down about 72.6 percent from its all-time high of $0.231673 in 2018. It was at its lowest in its first year of existence, priced at $0.00180434.

Assessments of Tron’s market volatility vary, with some experts describing it as unpredictable and high risk, while others see it as a stable cryptocurrency. According to recent market analyses, Tron has been less volatile in the cryptocurrency market.

Market Cap

Bitcoin

Bitcoin has a market capitalization of $379.94 billion, 67.94 percent less than last year. It currently has a market cap dominance of 37.933 percent and is ranked at number one – a dramatic change from 2013, when Bitcoin’s market cap sat at $1.2 billion.

Tron

TRX token currently has a market cap of $5.82 billion. This is significantly less than Bitcoin but indicates that Tron tokens are valuable to the market. Additionally, it has a market cap dominance of 0.564 percent and is ranked in 15th position.

Daily Transactions

Bitcoin

In January 2021, Bitcoin experienced around 400 000 daily transactions. Daily transactions have now reduced by 12.69 percent to around 248 540.

Tron

According to a 2021 article, Tron reached an all-time high of 9,278,050 transactions in a single day. It experienced its lowest number of daily transactions in 2018, with 1397 transactions on the 29th of June. In 2022, between 5 and 7 million transactions will be recorded on the Tron blockchain daily.

Block Size

Bitcoin

Bitcoin has a block size of 1 MB, which may seem small but is enough to accommodate more than 2000 transactions. This block size is determined by the Bitcoin Core protocol.

Tron

The Tron ecosystem has a block size of 2 MB.

Similarities

Tron TRX and Bitcoin have been on the market for more than five years.
Both were created with the primary purpose of decentralization.
Both digital assets are widely available on several trading platforms.

Differences

Bitcoin is a coin, and Tron is a token.
Bitcoin is mined, but Tron isn’t.
Tron is known to have lower volatility than Bitcoin.
Tron has more daily transactions than Bitcoin.
According to crypto researchers, Tron consumes less energy than Bitcoin.
Bitcoin is solely a digital currency, whereas Tron is an entire platform.

Risks

Bitcoin

One of the most significant risks associated with investing in Bitcoin is its market volatility, which tends to remain on the higher side. This effectively means it’s hard to predict when the price will increase or decrease.

The best way to avoid this is by making small investments and constantly keeping your eye on fluctuations or setting price alerts.

Tron

According to its risk gauge rank, Tron TRX is a relatively low-risk cryptocurrency for investors, but, like most crypto coins, this could change rapidly. As with most new coins, TRX can be less predictable in terms of its price, making investing in the coin a somewhat risky enterprise.

Given how new cryptocurrency is in general, trading most coins always presents a certain degree of risk.

Where To Buy

Bitcoin

Bitcoin can be purchased and traded on most top markets. Here are some platforms where you can buy Bitcoin – but please note, this doesn’t serve as an endorsement of these platforms:

Binance
Coinbase
Uphold
Bitcoin.com
Gemini
Kraken
BlockFi
eToro
CoinMama
Bisq
Pionex
Luno
Crypto.com

Tron

Like Bitcoin, Tron TRX is relatively easy to purchase and can be acquired through a variety of platforms; here are a few:

FTX
Binance
Easy Crypto
Kraken
KuCoin
Gate.io
Bybit
Kriptomat

Exchanging Bitcoin For Tron

Exchanging Bitcoin for TRX tokens is a matter of finding a platform to facilitate the exchange. For example, Changelly allows users to purchase cryptocurrency using their bank card or preferred payment method and make crypto-to-crypto exchanges on the platform.

Please note that transaction fees may apply and could vary according to the platform you decide to use.

Future Plans

Bitcoin

The main issue around Bitcoin is government regulation, mainly since it was created to circumnavigate government involvement in transactions. As a result, greater pushes are being made to keep Bitcoin as unregulated as possible or, if that fails, “appropriately” regulated.

Additionally, the introduction of Lightning Network, a layer 2 payment protocol, could make Bitcoin transactions faster and more mainstream.

Tron

If the number of daily transactions it experiences is anything to go by, it’s evident that Tron has grown in popularity in recent years. Many tout the cryptocurrency as a good way to make passive income.

Apart from added features, like smart contracts, there aren’t many concrete plans for Tron’s ecosystem. At this point, it’s only evident that there will be a push to further build the ecosystem to support numerous dapps.

FAQs

What is a bear market?

In cryptocurrency, a bear market is a downward trend in the prices of crypto assets in a particular sector or the general decline of broad market indexes.