0

Bitcoin Vs. Uniswap: A Brief Comparison 

Better Buy: Uniswap or Bitcoin?

7 Min Read
Last Updated April 12th 2021

Bitcoin (BTC) and Uniswap (UNI) are two cryptocurrencies that have been in the limelight lately. Both crypto assets have shown considerably high growth in their prices over the past few years.

Let us explore why investors are flocking around these two cryptos and further see which is a better buy in 2021 Uniswap or Bitcoin.

Bitcoin (BTC) doesn't need an introduction as the largest and most popular cryptocurrency globally, far ahead of all its peers in terms of market capitalization. Bitcoin is given credit for starting the wave of interest in cryptocurrencies. 

Bitcoin has retained the initial interest shown in the cryptocurrency, even though hundreds of other currencies have come into the market since bitcoin's launch. However, bitcoin has held on to its numero-uno status as the dominant cryptocurrency despite the increased competition. 

The UNI token is a new token, launched as recently as September 2020, that serves as the native cryptocurrency of the Uniswap platform. Uniswap had become the world's largest DEX by volume within 18 months of launch. Uniswap faced a significant challenge from SushiSwap. However, Uniswap weathered the storm and emerged even more robust

As a response to SushiSwap, Uniswap launched its native token, UNI. 

What Is Bitcoin?

Bitcoin is the most popular cryptocurrency in the world and also the largest by market capitalization. Bitcoin is decentralized and facilitates payments between individuals and businesses using peer-to-peer technology. Bitcoin has also been utilized as a store of value. 

Created by an anonymous individual or a group of people using the name "Satoshi Nakamoto," bitcoin's stated goal is to create a decentralized, peer-to-peer electronic cash system that is free from any third-party influence. Bitcoin's domain "bitcoin.org" was registered in 2008, and a few months after this, a white paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" was published. 

The bitcoin network officially came online on January 3, 2009. The genesis block of bitcoin had a reward of 50 BTC. In 2010, Satoshi Nakamoto left bitcoin, leaving it in the hands of prominent members of the bitcoin community. 

What Is Uniswap?

Uniswap is a decentralized exchange (DEX) that runs on the Ethereum platform. It is an open-source protocol that focuses on ETH trading and other Ethereum based assets. 

UNI is Uniswap's native token, created by Uniswap as a step towards achieving decentralization. The UNI token was introduced on September 17, 2020, and distributed according to a pre-decided release schedule. 

The UNI token is meant to be a governance token, meaning token holders can vote on changes or development decisions on Uniswap. The Uniswap team plans to phase itself out, allowing UNI token holders to make governance decisions. 

Individuals can buy UNI tokens from different exchanges like Binance, Coinbase Pro, Gemini, Bitfinix, Huobi, Kucoin, and Uniswap. 

Bitcoin vs Uniswap: How Does UNI Work? 

UNI is Uniswap's native token. The Uniswap DEX is currently the largest decentralized exchange globally and the most popular Ethereum dApp. 

Uniswap runs on two different smart contracts, The "Exchange" contract and the "Factory" contract. These contracts execute automatically when certain predefined conditions are fulfilled. Uniswap is open-source, allowing anyone to copy the code and create decentralized exchanges. Users can also list their tokens for free compared to other exchanges that charge a hefty fee. 

Uniswap is a decentralized exchange, which means users are in control of their funds. Uniswap is currently among the largest decentralized finance platforms, with over $3 billion worth of crypto assets on its protocol. 

Bitcoin vs Uniswap: How Does BTC Work?

Before we understand how bitcoin works, we must understand some basic terminology and context about the following. 

  • Blockchain
  • Miners
  • Public and Private keys 

Blockchain: Blockchain is what bitcoin runs on; it is an open-source code at the heart of bitcoin and almost all other cryptocurrencies in the crypto space. The blockchain creates a shared public ledger of all transactions and stores them, creating a permanent, immutable record of every transaction that has taken place on the bitcoin network. 

Public and Private keys: Public and private keys allow bitcoin holders to initiate and sign a transaction.

Miners: Miners verify and confirm transactions. Once they are verified, they are added to the blockchain. 

Bitcoin's public ledger stores a record of every transaction processed on the network. The records are combined into blocks, with the user wallets verifying each transaction by protected digital signatures that correspond to the sending address. Each transaction takes a few minutes to complete, thanks to the verification process. 

The transactions are processed by miners who act as the decentralized authority that enforces the bitcoin network's credibility. As the total supply of bitcoins approaches 21 million, bitcoins are released at a declining rate. The current reward for mining bitcoin stands at 6.25 BTC. 

Bitcoin vs Uniswap: What is Uniswap UNI Token?

  • UNI is Uniswap's governance token, giving token holders special privileges and governance rights. UNI token holders can vote on any changes to the protocol, giving them the power to approve or veto proposed changes. 
  • Despite the improvement in exchanges' security, there is a constant risk of hacks that put funds at risk. This is because custodial exchanges hold significant assets on behalf of their users. Uniswap, as a non-custodial exchange, does not require users to cede control of their assets to trade on the platform. 
  • Most exchanges require two types of approvals and permissions. The user must be approved to trade or transfer; this is done by providing details like identity and other personal information. Also, the assets that you can trade are available at the discretion of the exchange. Uniswap is completely permissionless, which means users need not be approved to trade or invest. Anyone that has access to the internet and an Ethereum wallet can trade on Uniswap. 

Bitcoin vs Uniswap: What Does Bitcoin Do?

  • Bitcoin is entirely decentralized and independent of any central authority. All individuals or businesses on the bitcoin network are part of a vast decentralized network. One advantage of decentralization is that transactions can still take place thanks to decentralization if any part of the network goes down. 
  • All transactions on the bitcoin network are stored on the blockchain, ensuring complete transparency. 
  • Bitcoin values privacy and anonymity. Users are not required to divulge personal information that can be linked directly to them in order to carry out transactions on the network. 
  • Transactions, once completed, cannot be reversed unless the person who has received the transaction decides to initiate a transaction to send the funds back. 

Bitcoin vs Uniswap: How Can You Get BTC and UNI?

There are several ways in which you can get Bitcoin and Uniswap. 

  • You can buy Bitcoin from cryptocurrency exchanges in several countries. 
  • You can also find the closest bitcoin ATM and get Bitcoin. 
  • You can also buy Bitcoin directly from other individuals who own bitcoin. Tools like Bitquick are a great way to conduct peer-to-peer transactions. 
  • You can also earn BTC from bitcoin mining. This method is out of reach for most people because bitcoin mining requires costly hardware and consumes a lot of power. 

Bitcoin is also capped at 21 million, which means that no more than 21 million bitcoins will be mined. 

UNI works differently. One billion UNI tokens have been pre-mined, and out of these, 60% will be distributed to the existing Uniswap community. In contrast, 40% will be made available to the team members, advisors, and investors over four years. Users can also claim UNI tokens if they have used Uniswap with a previous address. 

Bitcoin Vs. Uniswap: Which is Better? 

After launching its UNI token, Uniswap has positioned itself as a Decentralized exchange. Even though Uniswap’s team has a controlling stake in the protocol, this decision was taken to benefit the exchange. The team will not access the tokens, with control of the protocol to gradually be given to the community.

The platform’s impressive growth is set to become one of the most valuable platforms in the crypto and DeFi space. The UNI token will also significantly benefit from this growth.

Bitcoin has its uses, both as a cryptocurrency and as a store of value. Bitcoin has seen exponential growth in recent years as an investment and a store of value. With institutional interest rising, bitcoin’s value is going to increase even further.

Due to the popularity, increasing demand, institutional adoption, and technology, both Uniswap and Bitcoin are expected to stay afloat in the coming years. Since the market is prone to changes, the chances for several ups and downs are high. But it will eventually pick up as both cryptos are poised for an upward trend ahead.

Finally, the question is which one is a better buy, Bitcoin or Uniswap?

Bitcoin is a safe investment when it gives you good returns with relatively little risk, while Uniswap has space for more potential growth in the future. Each asset has its uses, and you can decide which of the two fits your goals better.

Bitcoin vs Uniswap: Conclusion 

Uniswap is an innovative DEX on the Ethereum platform, allowing anyone with an Ethereum wallet to exchange their tokens without any third party's involvement. Even with certain limitations, Ethereum 2.0 promises to unleash the full benefits of Uniswap, with exciting implications for the platform's users. 

Bitcoin is currently on an astonishing bull run that could see it set its highest price ever, more than once. Bitcoin is also generating significant institutional interest, with individuals, investors, and corporations recognizing its potential as a store of value. 

eToro – The Best Platform to Buy Cryptos 

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

Bitcoin Vs. Other Cryptocurrencies:

Bitcoin vs Dogecoin

Bitcoin vs Ethereum

Bitcoin vs Binance Coin

Bitcoin vs Cardano

Bitcoin vs Bitcoin Cash

Bitcoin vs. Ripple

Top 10 Most Important Cryptocurrencies Other Than Bitcoin

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.