If you’re a budding or aspiring crypto trader, assessing all the options on the market can be quite a confusing task. Bitcoin, being the first currency on the crypto market, makes a good point of comparison. In this article, we’ll examine how Klaytn measures up to Bitcoin.
History
Bitcoin
Bitcoin first arrived on the crypto scene in 2008, when Satoshi Nakamoto, the coin’s founder, published a whitepaper detailing the roadmap, structure, and objectives of Bitcoin. In 2009 the coin was introduced to the public, but it wasn’t widely used at the time.
In 2010, a Florida-based programmer made the first real-world Bitcoin transaction when he used 10 000 BTC to purchase two pizzas. This was a turning point in terms of Bitcoin’s usage.
Klaytn
Klaytn originates from South Korea’s publicly traded company, Kakao, a company that’s well-recognized for its diverse services. After the 2017 bull run, Kakao decided to venture into the crypto industry and create its own crypto.
Efforts to breathe life into Klaytn KLAY were nearly thwarted as the company faced backlash from the country’s financial regulators.
Kakao CEO Yeo Minsoo eventually actualized the vision of Klaytn in mid-2019, after which the Klaytn blockchain was launched.
What Are They, And Why Were They Created?
Bitcoin
Simply put, Bitcoin is a decentralized digital currency. It’s native to the internet, and unlike your more traditional fiat currencies, Bitcoin allows transactions to happen over the internet without there being a need for an intermediary. Every Bitcoin transaction is documented and published on a public ledger known as the blockchain.
It was created as a means of providing more financial freedom during the global financial crisis, which took place between 2007 and 2009.
Klaytn
Klaytn is an open-source enterprise blockchain with a modular network architecture. It’s designed to facilitate businesses conveniently customize and operate their own service-oriented blockchains.
Klaytn was created with the objective of achieving mass blockchain adoption. Achieving this entails the development of flexible end-user services. This makes Klaytn KLAY very similar to blockchain projects such as Ethereum.
Price History
Bitcoin
The lowest you could buy Bitcoin for was $67.81 in 2013. The price skyrocketed in 2021 when a single Bitcoin cost $69,044.77. At the time of writing, Bitcoin is priced at $16,839.06, falling around 75 percent from the all-time high of 2021.
Bitcoin is widely considered to be fairly volatile, and its volatility index has seen steady growth over the years but currently averages around 2.7 percent over 30 days.
Klaytn
At the time of writing, Klaytn KLAY has seen a fall in its price, trading at $0.182026 per KLAY. Klaytn KLAY reached its all-time high in 2021 when it was priced at $4.34 per KLAY. Its lowest price came in 2020 when one KLAY could be purchased or sold for $0.060440.
Market Cap
Bitcoin
Bitcoin has the largest market cap of all cryptocurrencies. At the time of writing, it has a market cap of $323 billion and a market cap dominance of 36.872%, thus illustrating how dominant it is. For reference, at the time of its price peak, Bitcoin’s market cap was only $1.2 billion.
Klaytn
Klaytn is ranked in the 72nd position in terms of its market cap. It has a market cap of $551 million and a market cap dominance of 0.062 percent.
Daily Transactions
Bitcoin
Since it reached 400 000 transactions in a single day in January of 2021, Bitcoin’s daily transactions have reduced significantly. At the time of writing, Bitcoin is experiencing an average of around 250 000 transactions.
Klaytn
There currently aren’t many publications on the number of daily transactions that Klaytn KLAY processes. However, over a 14-day period, it averages between 200 000 and 400 000 transactions.
Block Size
Bitcoin
Bitcoin has a block size of 1 megabyte and a latency of 10 minutes. While this block size may seem small, it’s enough to accommodate over 2000 transactions.
Klaytn
Klaytn’s block size is measured in bytes. At the time of writing, it has a block size of 1300 bytes.
Similarities
- Klaytn KLAY and Bitcoin BTC are both available on major trading platforms
- Both Bitcoin and Klaytn KLAY coins have official Twitter accounts
- Klaytn KLAY and Bitcoin are both geared toward decentralization
Differences
- Bitcoin has a much higher price or value than Klaytn KLAY
- KLAY is primarily known in Asia, whereas Bitcoin is more widely known across the globe
- KLAY has a much larger circulating supply than Bitcoin
Risks
Bitcoin
One of the most overt risks with all cryptocurrencies is the potential to be hacked. While initiatives are constantly underway to make crypto transactions and staking more secure, breaches are still occurring.
Another risk of choosing to invest in Bitcoin is its volatility. Because the value of crypto is based on a supply and demand model, the price isn’t always stable and can easily be changed or manipulated by crypto whales.
For example, a crypto whale can mass-sell their Bitcoin, which can easily cause the price to drop.
Klaytn
Like most cryptocurrencies, the viability of Klaytn KLAY as an investment depends on your risk tolerance, as well as how much you intend to invest. According to crypto analysts, it has a low-risk score, thus meaning that it’s not very risky to invest your money in it.
Additionally, Klaytn KLAY has high volatility, meaning that the price is incredibly likely to drop and rise within short timeframes.
Where to Buy
Bitcoin
One of the reasons why Bitcoin is so popular is that it can be found on most major cryptocurrency trading platforms. Here are some of the platforms where you can buy Bitcoin:
- Luno
- Binance
- eToro
- CoinMama
- Pionex
- Coinbase
- Uphold
- Bitcoin.com
- Gemini
- Kraken
- BlockFi
- Bisq
- Crypto.com
Klaytn
Klaytn is currently traded on over 30 exchanges, some of which allow you to trade it for certain fiat currencies:
Exchanging Bitcoin for Klaytn
Exchanging Bitcoin for Klaytn is usually simple and straightforward, merely requiring you to find a platform that facilitates the transaction. HitBTC is an example of a platform that allows you to exchange BTC for KLAY. Just be sure to keep an eye on the exchange rate while doing this.
Future Plans
Bitcoin
People typically use Bitcoin as an indicator of the cryptocurrency market’s performance and developments, while other coins tend to follow its trends. As of now, the main plan for Bitcoin is positioning it as a mainstream way of transacting. The problem with this is scaling the currency so that transactions are faster.
At present, plans are underway to ensure that the blockchain can handle more transactions and process them at a faster rate. There are also plans to keep the price of Bitcoin more stable and prevent it from falling below a certain point.
Klaytn
Klaytn has a well-defined roadmap for the future, which primarily involves improving bridging into the metaverse, nurturing its growth, and enhancing developer support. More specifically, Klaytn intends to adopt EVM specification, scale up using service chains, and optimize its consensus mechanism to boost the transactions per second of its chains.
Despite these plans, several investors from around the world have pulled money from the project due to buyers not showing much interest and the trading volume waiting.
FAQs
What is an EVM?
EVM stands for Ethereum Virtual Machine. It’s a computation platform that allows developers to create decentralized applications on the Ethereum platform. The EVM is the backbone of the Ethereum platform.
What is a blockchain ecosystem?
A blockchain ecosystem refers to the network of all the participants in the blockchain network. These participants share the business processes and objectives. Additionally, it encompasses governance structures such as individual participation, data ownership, and entrance criteria.
How can cryptocurrency be used?
Fortunately, buyers have a number of ways in which they can use their crypto. However, usage may be limited to a coin’s network and what the network facilitates. Here are some of the general usages of crypto:
- Low-cost money transfers
- Earning interest via “yield farming”
- Censor-resistant wealth storage
- Making private transactions
- Investing in startups
Can cryptocurrency go into the negatives?
Despite being a virtual currency, cryptocurrency’s value can never go into the negatives. This means that the value can never be less than $0.
Where does crypto come from?
Cryptocurrencies are typically generated from mining. Bitcoin is the most commonly mined crypto coin. This process involves downloading software that contains a partial or full history of transactions that have been processed on the network.
Sources:
https://buybitcoinworldwide.com/volatility-index/
https://capital.com/ethereum-virtual-machine-evm-definition
https://www.coinspeaker.com/guides/what-is-klaytn-klay/#Klaytn%E2%80%99sHistory
https://bravenewcoin.com/insights/10-awesome-uses-of-cryptocurrency
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