Since Bitcoin arrived on the scene over ten years ago, it has been followed by a host of cryptocurrencies, one of them being Internet Computer. People always compare new cryptos with old ones, so here’s how Internet Computer compares to Bitcoin.
Bitcoin became the first coin on the cryptocurrency market after being introduced in 2008. It was said to have been invented by Satoshi Nakamoto, an individual or collective whose identity has never been confirmed. Nakamoto mined the blockchain’s starting block, which is now referred to as the Genesis Block.
In 2010, programmer, Laszlo Hanyecz, made the first commercial transaction using Bitcoin after he purchased two pizzas with 10 000 BTC.
Dominic Williams founded Internet Computer in 2016 via the DFINITY foundation, which has over 180 team members and notable experts in chain key cryptography and blockchain technology.
After extensive research, the foundation made a breakthrough in cryptography innovations and thus managed to scale the Internet Computer blockchain technology.
Before releasing the token to the public, the DFINITY foundation secured it from high-profile venture capital firms such as Electric Capital, Andreessen Horowitz, and Polychain Capital.
What Are They, And Why Were They Created?
Bitcoin is a decentralized digital currency that can function as an alternative payment method without intermediaries. It was created in response to the global financial crisis and to give citizens more control over how they transact over the internet.
You can find a more extensive breakdown of Bitcoin’s objectives and how it functions in the official whitepaper.
Internet Computer is a blockchain-based platform. More specifically, it’s based on a network of sub-blockchains governed by a decentralized master blockchain.
The objective of Internet Computer is to offer an alternative so that developers can build, host, and serve decentralized applications. Effectively allowing websites to be directly deployed onto the public internet and subsequently decrease big tech companies’ monopolization of internet services.
Internet Computer Protocol tokens are the native utility tokens of the Internet Computer ecosystem, and their value is determined on the open market.
If you’re in the market, you can currently get a single Bitcoin for $20,203.46. On November 10, 2021, Bitcoin reached its peak, and one would cost you $69,044.77. It was priced at its lowest in 2013, with each coin valued at a mere $67.81.
Because the crypto coin has seen substantial fluctuations throughout its existence, it is considered quite volatile.
At the time of writing, Internet Computer tokens are priced at $5.02 each. They were priced at their highest in 2021 when a single token would set you back $700.65, 99 percent more than today’s amount. The cheapest you could get an Internet Computer token was on October 21, 2022, where one cost $4.68.
According to analysts within the crypto industry, Internet Computer is moderately volatile and is ranked within the bottom 45 percent of cryptos in terms of volatility.
Bitcoin is ranked in 1st position in market cap, and it currently has a market capitalization of $398.17 billion. For the sake of comparison, the global crypto market cap is $979.01 billion, which explains Bitcoin’s market cap dominance of 37.939%.
Internet Computer currently has a market capitalization of $1.38 billion and is 41st in the market cap rank. Additionally, it has a market cap dominance of 0.133%.
Given that it currently has a trading volume of $41,249,907,931, Bitcoin’s position in cryptocurrency is much more evident. The world’s first crypto coin now experiences approximately 250 000 daily transactions.
In 2021, there used to be around 400 000 daily Bitcoin transactions at some point.
In terms of its current market cap and market cap dominance, Internet Computer experiences between 2000 and 4000 query and update transactions on a daily basis.
Blocks are an indication of capacity. The Bitcoin network is limited to a block time of 10 minutes and a block size of 1 MB. This block size, although seemingly small, can accommodate around 2000 transactions.
As far as the Internet Computer network is concerned, blocks are limited to around 8 megabytes of data per block, but this apparently will be upgraded in the future.
- Bitcoin and ICP are both smart contract platforms.
- Both have their own blockchains.
- They’re both found on most of the major trading platforms.
- You cannot mine ICP coins, but you can mine Bitcoin.
- Bitcoin aims to decentralize transactions, and ICP seeks to facilitate the creation of decentralized applications.
- There is still no confirmation of the identity of Bitcoin’s founder, whereas ICP’s founder is widely known to be Dominic Williams.
Given that Bitcoin has been around for over ten years, it doesn’t present the same risks as a new crypto coin. However, it’s still subject to issues such as cybertheft, volatility, a lack of regulation, reliance on technology, and the ever-present risk of financial loss.
Most of the risks that Bitcoin presents are related to the lack of regulation which is ironic considering that the Bitcoin project has always aimed to mitigate regulation as much as possible.
Many analysts have mixed feelings about the Internet Computer project, particularly given that it aims to be much more than a mere smart contracts platform.
Potential risks when investing in Internet Computer include:
- Having a single identity tied to all your online actions.
- Needing to stake coins to comment on governance issues.
- The ICP project code is not open-source.
- The ICP project aims to substitute the whole internet – which may be a considerable concern to some people.
Whether or not you should invest in a cryptocurrency depends on your risk tolerance, so always do your own research beforehand.
Where To Buy
You can buy Bitcoin on the following platforms:
Although it isn’t as widely available as Bitcoin, you can purchase ICP coins on most major trading platforms. It’s generally a matter of creating an account, after which you’ll gain market access. Here are some of the exchanges that you could use:
Exchanging Bitcoin For Internet Computer
Exchanging Bitcoin for Internet Computer is usually a simple matter of finding a platform that facilitates that trading pair. For instance, both Atomic.io and HitBTC give users the option to exchange BTC for ICP, and doing so is typically the same as a standard trade. Do bear in mind that we are not endorsing either platform.
A major issue that the Bitcoin network is looking to address is scalability. In this context, scalability refers to the ability of the Bitcoin network to handle a large volume of transactions. Resolving this issue will then make Bitcoin a more viable option when it comes to completing real-world transactions.
The introduction of Lightning Network is said to be the first step towards addressing this issue. Although it’s more of an ongoing issue, the Bitcoin network must also find means to avoid government regulation.
The foundation is currently working on ways to make Internet Computer work worldwide. One primary objective that they have is upgrading the block size, which is probably related to the foundation’s ambition to run at web speed and become the Ethereum killer.
Some also insist that a smart contract platform must include Bitcoin to become more competitive. There is some talk of including Bitcoin on the Internet Computer blockchain.
Is the ICP token a public or private cryptocurrency?
ICP is a public blockchain, meaning anyone is free to join and participate in the activities on the blockchain network.
Will the price of ICP tokens rise?
This primarily depends on whether the plans for the coin are executed well, particularly network upgrades. According to crypto analysts, if network upgrades are performed, and the token grabs the attention of major investors, then it may hit $20 by 2024.
Where can I use ICP tokens?
ICP tokens have two primary uses. They can be locked inside the Network Nervous System to create “neurons,” these neurons can then be used to vote on protocols and earn voting rewards. They can also be converted into cycles to power the computation performed by canisters.