Bitcoin was created back in 2009 as an alternative to money, whereas Ethereum is more of a platform that facilitates companies building new applications and programs.
Ethereums website insists that its own currency would never have been possible without bitcoin and that the two cryptos are complementary within the digital ecosystem.
The website explains: Ether is to be treated as "crypto-fuel", a token whose purpose is to pay for computation, and is not intended to be used as or considered a currency, asset, share or anything else.
The recent explosion in the value of cryptocurrencies has prompted excitement among financial experts.