Bitcoin is the biggest cryptocurrency by market capitalization while Tron is currently the eleventh biggest cryptocurrency by market cap.
The two were among the first cryptocurrencies to be created, and are now household names in the industry. Bitcoin is in its own class, while Tron is referred to as an altcoin, one of the cryptocurrencies other than Bitcoin.
You may be wondering how these two cryptocurrencies differ from each other. Well, in this guide, we discuss the two of them, focusing on their key differences as well as strengths and weaknesses.
We will also analyze the suitability of these crypto projects for use in certain areas such as investing. Without further waste of time, let’s get into it.
What Is Bitcoin (BTC)?
Bitcoin is the most popular cryptocurrency and also the first one to be created. It was created to serve as peer-to-peer electronic cash for buying and selling goods and services. Bitcoin was used for this purpose for a while, but then the network started getting congested and slow.
As a result, it also became expensive to use the network and a controversy arose on what must be done to ensure that Bitcoin remained a way of making payments. This led to the breaking of Bitcoin into Bitcoin and Bitcoin Cash, but that is not the focus for today.
Bitcoin uses the proof-of-work (PoW) consensus mechanism to verify transactions and keep the network safe. This requires miners to use specialized computers to solve complex mathematical problems and in the process, new BTCs are released into circulation.
There are a maximum of 21 million BTC. This is the maximum number that can ever be mined and that can be in circulation. Considering the total supply of most cryptocurrencies, this is a very limited supply, which makes it of high value.
Already, about 20 million of the 21 million BTC have been mined, and thousands have been removed from circulation by mistake or on purpose. This leaves a even smaller supply of Bitcoin and because it has grown in value over the years, is now considered to be a store of value.
What Is Tron (TRX)?
Tron is a PoS crypto network that has been around since 2017 on the Ethereum network. It however only became an independent network in 2018. The network was created as a more scalable, faster and cheaper alternative to Ethereum.
Since 2018, the network has been working on its own to bring about a decentralized internet for everyone. Like Ethereum and any other PoS network, Tron supports web3 functionalities such as building of decentralized applications, non-fungible tokens, decentralized finance (DeFi), etc.
The network also has a native token known as TRX. This is the token used to pay for transaction fees as well as stake to secure the network. Validators help to secure the network by staking their TRX and are also rewarded with more TRX as an incentive for them to continue staking.
TRX is also the token used for governance. Anyone who holds TRX has a right to vote on any proposals for the future development of the Tron network. This gives token holders a right to governance,
There are currently 87 billion TRX in circulation, and this is the total supply. However, there’s an infinite supply of the token. This means more TRX will always be pumped into the supply unless the plan changes in the future.
Which Is Better?
Bitcoin and Tron are quite different in both design and function. Therefore the one you choose will depend on what you wish to accomplish. If your goal is to find a network that will usher you into web3, or one that you can use to send funds with low fees, Tron works well.
On the other hand, if your goal is to buy and hold a crypto asset for long term investment, Bitcoin is by far the best option, both as a store of value and as a hedge against inflation.
