New currencies seemingly enter the cryptocurrency every year, each with a fresh approach and objective. As a result, potential investors quickly weigh up whether the new coin is a worthwhile investment. Before you buy, here’s a look at Hedera compared to Bitcoin.
In 2008, a paper discussing cryptography was released via a mailing list under the name Satoshi Nakamoto. The following year, Bitcoin was made available to the public, and the network introduced Bitcoin mining and transactions. Nakamoto reportedly mined 1.1 million Bitcoins, which would be worth $2.2 billion today.
The first real-world Bitcoin transaction took place in 2010 when a programmer paid 10 000 BTC for two Papa John’s pizzas.
It’s also worth noting that although Bitcoin was the first cryptocurrency established, there were previous attempts to develop a similar network.
Hedera Hashgraph was created in 2015 by computer scientist Leemon Baird, and technology executive Mance Harmon, under a Texas-based software company called Swirlds.
Swirlds initially developed an entity known as Hedera to govern a live network, later renamed Hedera Hashgraph.
Since 2018, the Hedera Hashgraph network has garnered over $120 million through the sale of the HBAR token and a simple agreement for future tokens offering (SAFT).
What Are They, And Why Were They Created?
Bitcoin is a cryptocurrency without central control or regulation by governments or banks, which is why it’s referred to as a “decentralized” currency. Bitcoin relies on peer-to-peer software and cryptography to function.
It was created as a means for people to send money over the internet, mainly due to the global financial crisis, or the “Great Recession,” of 2007-2009.
Hedera is an open-source, publicly distributed ledger using the hashgraph consensus. It’s presented as a faster and more secure alternative to the blockchain. HBAR tokens are the native cryptocurrency of the Hedera platform and are said to be energy-efficient.
Hedera offers smart contracts, a file service, a consensus service, and the more widely known Hedera token service. The Hedera token service and the Hedera consensus service are geared toward offering improved flexibility and empowering users. Hedera Hashgraph can also be used for network protection.
Hashgraph inventor, Leemon Baird, had been contemplating the issue of distributed consensus for years, driven by a desire to obtain a piece of cyberspace and share it with others on a public network without depending on a big technology company.
Throughout its existence, Bitcoin has done an excellent job of illustrating how quickly the price of a cryptocurrency can fluctuate. In 2013, Bitcoin was priced at $67.81 – a minuscule amount compared to the peak of $69 044.77 it reached in 2021. At the time of writing, Bitcoin is currently priced at $20 734.41 and is still considered volatile.
Despite a spike in value in 2021, Hedera Hashgraph HBAR is currently only worth $0.059365. The Hedera Hashgraph price reached an all-time high in 2021 when it was worth $0.569229. In 2020, it was worth almost 500 percent less than what it’s worth today, at a mere $0.00986111 per token.
Hedera Hashgraph is typically described as inherently volatile; however, some see it as “moderately volatile,” given that it’s in the bottom 35 percent of cryptocurrencies in terms of volatility.
At the time of writing, Bitcoin’s market cap has decreased by 67.94 percent to $379.94 billion. While this is significant, it still has a market cap dominance of 37.933 percent and is ranked at the top in terms of cryptocurrency market cap. In 2013, at Bitcoin’s lowest point, its market cap was $1.2 billion.
Hedera has a market cap of $1.4 billion and a market cap dominance of 0.142 percent. It’s in 39th position in terms of market cap rank, a stark contrast to Bitcoin.
Bitcoin saw the greatest amount of daily transactions in 2021, following a boom in the popularity of digital assets. In early 2021, Bitcoin saw around 400 000 transactions every day. Currently, just over 240 000 Bitcoin transactions occur daily, showing a reduction of approximately 12.69 percent.
According to research, Hedera Hashgraph processes around 6.5 million transactions on a daily basis which is more than Ethereum and Bitcoin combined. This indicates substantial growth, as the Hedera Hashgraph network was processing an average of 1.5 million transactions every day in 2020.
Bitcoin currently has a block size of one megabyte, which can facilitate over 2000 transactions. The Bitcoin Core protocol determines block size.
Like Bitcoin, blocks on the Hedera network are capped at one megabyte of data. Miners choose which transactions to include based on fees.
- Both platforms are open-source.
- Hedera and Bitcoin are proof-of-stake or proof-of-work blockchains that don’t necessarily require mining.
- Hedera and Bitcoin are readily available on most major trading platforms.
- Bitcoin has a max supply of 21 million coins, whereas Hedera has a fixed supply of 50 billion coins.
- Bitcoin transactions take 1 to 1.5 hours to complete; Hedera transactions are completed within three to five seconds.
- The identity of Bitcoin’s founder is unknown, whereas the identity of Hedera’s founders is widely known.
Bitcoin has been around for many years, and while it is more widely known, there are still risks for investors. Beyond usual dangers, such as the price suddenly changing, system failures, and your wallet being hacked, there is also the risk of liquidity or difficulty settling your trades.
In terms of proving its concept, Hedera Hashgraph still has a long way to go. Because of this, it carries the same risks as investing in most other cryptocurrencies. Some potential concerns over Hedera network services include product complexity, charges, price volatility, and consumer protection.
If you’re looking to make Hedera Hashgraph work for you, do your own research before investing.
Where To Buy
For over a decade, Bitcoin has been on the cryptocurrency market, so finding and buying it is straightforward. Here are some of the trading platforms where you can purchase Bitcoin:
Despite being a relatively new crypto token, there are plenty of exchanges where you can buy Hedera Hashgraph. The complete list of exchanges can be found on their website and include:
- Metal Pay
Exchanging Bitcoin For Hedera
Luckily, if you already own Bitcoin and thus are looking to exchange it for Hedera, the process is generally the same as exchanging Bitcoin for any other crypto coin; it’s simply a matter of finding a platform that allows you to do this.
Changelly, for example, allows users to make this exchange and even outlines instructions on their website on how to get it done.
As Bitcoin has effectively already established itself as the leading cryptocurrency, its primary objective is further avoiding government regulation while maintaining a degree of compliance with the necessary laws and regulations.
Additionally, as Bitcoin becomes more established and commonly used, innovations such as Lightning Network aim to improve transaction speeds, so Bitcoin can become a more mainstream way of transacting.
Beyond continuing its mandate of providing blazing-fast transaction speeds and serving as a trust layer of the internet, Hedera describes its roadmap as “audacious but simple.” Their website outlines a plan that, for the larger part, centers on decentralization, adding new features to the network, and additional support for smart contracts.
Who is partnering with Hedera?
French video game developer Ubisoft is partnering with Hedera to support gaming and entertainment innovators from around the world.
Is Google invested in Hedera?
Google Cloud is a member of the Hedera Governing Council, a diverse group of world-leading organizations.
Are HBAR transactions fast?
According to the currency’s official website, HBAR transactions reach finality and are on-ledger within three to five seconds. So, this speed may be subject to which coin or token you’re comparing it to.
Why is Hedera’s consensus service useful?
The consensus service is useful for decentralized applications that require transaction ordering without an intermediary.