Ether And Ethereum: What They Are And How They Compare To Bitcoin - Business Insider
Matt Galligan, a serial entrepreneur and investor in ether, said he was also looking to the five-year mark, when he expects the platform to have matured to the point when it has a lot of uses. "The space is still really early," Galligan said. "There's going to be a lot of froth and volatility." Ethereum is a platform for sharing information that cannot be manipulated or changed. It's a blockchain similar to the one underlying the bitcoin cryptocurrency that records information chronologically and publicly. In the future, Ethereum may be used to securely transfer money to your bank or to send documents to your insurance company. Today, these processes require multiple steps for verification and authentication, but Ethereum makes verification a one-step process because the information is incorruptible in the first place. Ether is the unit of currency in Ethereum. It's a token that can be exchanged for services on the platform. The currency is the "fuel for the Ethereum virtual machine," said Andreas Weiler, the head of markets at Smith and Crown, a crypto-financial research group. Ether, Ethereum, and bitcoin are not the same things While often compared to bitcoin, ether is not actually a competing currency. Bitcoin is explicitly a digital form of money and payment system, whereas ether is a means of buying services within Ethereum. Ethereum is still in beta and not widely used, but some investors believe it may someday be a foundational layer of the internet. Ether is still a financial risk, however, because Ethereum hasn't yet taken off and there's no guarantee that it will. "When you invest in ether, you are not actually doing anything you are holding ammo, which will allow you to execute code when there is code worth being executed on the platform," Weiler said. In t Continue reading >>
Ethereum Price Is Up 2,000% This Year. Here's Why
Bitcoin has more than doubled in price this year alone, but it has been outperformed by its closest rival Ether, which is up over 2,300 percent. On January 1, bitcoin was trading at the day's high of $1,003.25. On Wednesday, it broke through the $2,300 barrier for the first time to hit a fresh record high of $2,377.32, according to CoinDesk, marking a year-to-date rise of 137 percent. To find out what's driving bitcoin's rally, read more here . Meanwhile, bullishness around bitcoin has stoked appetite for other cryptocurrencies. One in particular known as ether is getting traction. Ether has risen from $8.24 on January 1, to a high of $203.30, according to data from Coinmarketcap.com. This represents a 2,367 percent rise year-to-date. Ether runs on an underlying technology called Ethereum, which is a different blockchain to the one that underpins bitcoin. While ether does have digital "coins" like bitcoin, companies are more focused on how the Ethereum blockchain could be used in real-world applications. Ethereum has been designed to support so-called smart contract applications. A smart contract is a computer program that can automatically execute the terms of a contract when certain conditions are met, potentially taking a lot of the human involvement out of completing a deal. Barclays for example, have used a form of this technology to trade derivatives. Firstly, Ethereum is a lot younger having only been started in 2014, whereas bitcoin began in 2009. Ether's market cap is at $18.6 billion versus bitcoin's $39.2 billion, according to Coinmarketcap.com. Ethereum is also focused on smart contracts , while bitcoin is very much about payment technology. While bitcoin has been getting support from certain governments and investors, the Ethereum blockchain has been backe Continue reading >>
What Is Ethereum And How Does It Differ From Bitcoin?
What is ethereum and how does it differ from Bitcoin? The ethereum cryptocurrencyCredit:Bloomberg Ethereum is a rising star in the cryptocurrency world. It has quickly become the second largest digital currency in just over two years, booming in value and spurring the rise of hundreds of new rivals to Bitcoin. Launched in 2015, the value of ether (ethereum's currency)has increased rapidly. It suffered a set back before Christmas 2017, suddenly dropping from $850 to around $690 -a drop of about 20 per cent. Since then it has continued to show intense volatility, hitting highs of $1400 in January before slumping to less than $560. Last year sawmonths of increase in the price of Ethereum and rival cryptocurrencies like Bitcoin and Litecoin.At the start of 2017, one coin was worth around... Register or log in to view this and other Technology Intelligence articles. It's free and easy to do. Access brilliant stories, features and analysis Sign up to our exclusive Technology Intelligence daily newsletter Become part of our ambitious new Tech networking community Continue reading >>
Is Ethereum More Important Than Bitcoin?
By Adam Hayes, CFA | Updated June 13, 2017 1:57 PM EDT Blockchain technology, the distributed ledger system that underpins the digital currency Bitcoin, is getting a lot of attention from Wall Street lately. With uses ranging from cross-border payments to settlements and clearing of over-the-counter derivatives to streamlining backoffice processes, the potential for disruption in the financial industry and elsewhere is growing more real each day. While bitcoinis the most widely used and well known use case of blockchain, Ethereum may be thekiller app that allows for this disruption to finally take place. The tokennative to the Ethereum blockchain , Ether (ETH), has recently risen to over $10 per ETH, and the market capitalization of all ether is nearly $800 million, making it the second most valuable blockchain behind bitcoin (which represents approximately $6.5 billion of value).What is Ethereum and why is it interesting? Ethereum was developed to augment and improve on bitcoin, expanding its capabilities. Importantly, it was developed to feature prominently smart contracts:decentralized, self-executing agreements coded into the blockchain itself. Ethereum was first proposed by Vitalik Buterin in 2013 and went live with its first beta version in 2015. Its blockchain is built with aturing-complete scripting language that can simultaneously run such smart contracts across all nodes and achieve verifiable consensus without the need for a trusted third party such as a court, judge or legal system.According to its website ,Ethereumcan be used to codify, decentralize, secure and trade just about anything. In late 2014, Ethereum raised over $18 million in bitcoinby way of a crowdsaleto fund its development. The Ethereum Virtual Machine (EVM) is capable of running smart contr Continue reading >>
8 Answers - Why Does Ether (ethereum) Have Value? - Quora
What could be a good reason to start investing before 2018? ETFmatic offers free investing accounts until April 2018 if you fund your account before December 31! Originally Answered: What factors will determine the value of ether and ethereum? Like Bitcoin, the fiat value of ETH is determined by those who buy and sell it alone. The currency is used to pay for smart contracts within the Ethereum network, so one might say that Ether tokens are backed by the value that these smart contracts provide. So far (June 2016), nearly all value is speculative as smart contracts have not yet found a killer app. WePower - blockchain based green energy trading network. WePower token is backed by green energy. Token grows with platform expansion. Backed by biggest funds. Originally Answered: How do we value something like Ethereum? How do we value things in general? Intersubjective value theory holds that you probably factor in predictions. Predictions on what your future will look like with or without the trade, predictions what others will think your future will look like with or without the trade, predictions on what the future of others might look like if they made the trade or didnt. Heuristically, you look at what everybody else is giving up (price) compared to your opportunity costs (costs). Value comes from evaluations between things, in addition to evaluation of others between these things, not the thing itself. Continue reading >>
How Do People Give Value To Cryptocurrency And How Is The Price Of Cryptocurrency Defined? | Bitconnect
Precious metals gain their value/perceived value due to their utility and limited supply, and price is often tied to supply/demand. Supply/Demand is a simple economic factor that affects the price of many things. In some countries Bitcoin and other cryptocurrencies is classed as an asset, in others as a currency. Bitcoin, for example has a maximum of 21 million whole units, divisible 100 million times. With over 7 billion people on the planet, if even 1 billion were to adopt Bitcoin, 21 million whole units would not spread very far without a significant price tag. The supply is also bought in at a constant rate and is unchangeable due to the coconscious rules. This creates a supply that is limited, and thus people will pay more to get the coins they think have value. Block reward halvings, like the Bitcoin halving of 2016 caused the price to slowly increase as the halving approached, due to the reduced supply of new incoming coins imminent. This can affect the price of many cryptocurrencies, but in the case of Litecoin, did not even make a major dent in the price. The energy put into securing blockchains can be intensive. In the case of proof of work (POW) blockchains which are the most popular form, electricity usage can be intense. In the case of Bitcoin, the blockchain uses as much energy securing it at present as a small country uses. This has a factor on the price, as it takes a certain amount of energy on average to mine one Bitcoin. This goes up with difficulty increases. The more secure the blockchain and the higher the mining difficulty , the higher the perceived value and price and the harder the coins are to get through mining. This can have an impact on price and ties in with the energy usage above, in the case of proof of work blockchains such as Bitcoin a Continue reading >>
How To Value Cryptocurrencies (including Bitcoin, Ethereum, Etc)
How to Value Cryptocurrencies (including Bitcoin, Ethereum, etc) Cryptocurrencies are one of todays hottest asset classes to invest in. Bitcoin in particular has soared in price from pennies to thousands of dollars per unit in just a few years. But is it all a bubble, like the Dotcom era or tulip mania ? Or is this just the start of something bigger, or even revolutionary? I dont have the answers to those questions, but this article will provide a framework to help you think about how to value cryptocurrencies for yourself, including explaining a lot of the risks involved. Start here from the beginning or jump to the section you want: How to Value Bitcoin & Other Cryptocurrency Cryptocurrencies 101: A Blockchain Overview Bitcoin, the first cryptocurrency, was invented by an anonymous person or group named Satoshi Nakamoto and released publicly online in 2009 as open-source software and a white paper that explains the concept. Satoshi claimed to be a Japanese man in his thirties, but his identity has never been verified because all of his communication was via the Internet. He wrote with influences of British English, and had sleep/wake cycles according to his online activity that would presumably place him in North America, leading many to believe that hes not actually Japanese. Or maybe hes multi-ethnic. It might not even be a man. It could conceivably be a woman or a group of people. But most likely its a man using a pseudonym. And wherever he is, he has about a million bitcoins, worth billions of dollars now, which he has never spent. And he has gone dark; after having invented the concept, he no longer leads it and his whereabouts and identity are unknown. Anyway, Bitcoin was invented for the purpose of being a decentralized currency and method of payment. It does Continue reading >>
Ethereum - Wikipedia
This article has multiple issues. Please help improve it or discuss these issues on the talk page . This article relies too much on references to primary sources . Please improve this by adding secondary or tertiary sources . Some of this article's listed sources may not be reliable . Please help this article by looking for better, more reliable sources. Unreliable citations may be challenged or deleted. The Ethereum Project's logo, first used in 2014 Ethereum is an open-source , public, blockchain -based distributed computing platform featuring smart contract (scripting) functionality.  It provides a decentralized Turing-complete virtual machine , the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed.  "Gas", an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.   Ethereum was proposed in late 2013 by Vitalik Buterin , a cryptocurrency researcher and programmer. Development was funded by an online crowdsale between July and August 2014.  The system went live on 30 July 2015, with 11.9 million coins "premined" for the crowdsale.  This accounts for approximately 13 percent of the total circulating supply. In 2016, as a result of the collapse of The DAO project, Ethereum was forked into two separate blockchains - the new forked version became Ethereum (ETH), and the original continued as Ethereum Classic (ETC).    Ethereum was initially described in a white paper by Vitalik Buterin ,  a programmer involved with Bitcoin Magazine , in late 2013 with a goal of buildin Continue reading >>
Ethereum's Co-creator Predicts A "flippening" With Bitcoin In 2018
Ethereum co-creator Steven Nerayoff says increased projects built on the cryptocurrency could trigger a "flippening" in 2018, in which ethereum overtakes bitcoin. "What you're seeing with ethereum is exponential increase in the number of projects there are billions of dollars being poured into the ecosystem right now maybe 10 times more projects this year than last year, which could easily lead to a doubling, probably a tripling in price by the end of the year," Nerayoff said Monday on CNBC's "Fast Money." While bitcoin was designed to function as a peer to peer electronic payment system, ethereum was designed for smart contracts that execute when specific conditions are met. Nerayoff, who helped craft token sales for the ethereum project, said businesses in an increasingly wide variety of industries are starting to take note of what value Ethereum's protocol could offer them. "You're seeing a tremendous amount of growth across a wide variety of industries. Fintech is actually the natural area, but now you're seeing it becoming increasingly more creative you find projects in the oil and gas industry, you're finding government using it in their applications, you're seeing it in gaming, all kinds of different areas," Nerayoff said. Beyond project building, Nerayoff said usage is increasing because ethereum can process transactions more quickly and cheaply than its rival. "People are actually using it for currency, as well," he said. "Lower transactional costs are increasing usage of the entire network, and that's increasing the network effects of it. There are more users, more projects being built on there and more programmers," he said. Despite his confidence, Nerayoff isn't discounting bitcoin and the interest in cryptocurrency it inspired in 2017. "The entire space is Continue reading >>
Eli5 What Gives Ether Value? : Ethereum
EDIT: I'm not asking why the value of Ether has been growing. I am asking why Ether has value at all/why people are even buying it (other than a quick turn around investment). Many of the comments helped me understand, so thank you! I know Ethereum blockchain is designed different than the BTC blockchain, arguably better. I also know about the big news about large companies like Toyota joining the EEA. But how and why does this affect the current value of buying/selling ether? With bitcoin people are actually using it to buy and sell goods (legal and illegal), and all of that big news about Japan, and the BTC ATMs in China and India. Heck, I paid some Etsy dude for some coffee mugs in BTC. But this isn't happening with Ether. Hopefully my question is clear. And I by no means am trying to poop on ethereum. Just trying to learn. Continue reading >>
How Is The Price Of Ether Calculated?
Many people wonder how the price of Ether is calculated, but its important to remember that it works no different than it would with other currencies or objects. Lets first look at how the price of most things are derived - we can use oranges as an example. What is the price of an orange? Well, it depends. As a starting point one would derive the price of an orange based on two things: how much someone is trying to sell it for, and how much another person is trying to buy it for. If John wants to sell it for USD2.50 and Sarah is only prepared to pay USD2.00, there is no deal. But if they agree on a price that works for both, lets say USD2.25, then the transaction will happen. If its winter, there might be more people wanting to buy oranges, so the price will go up. Or if there is a drought the supply of oranges will become less, so more people are trying to buy less oranges, which can also drive the price up. Ether and other currencies are a bit different from oranges in that they are what is called homogeneous - one dollar is identical to another dollar, just as one Ether is the same as another. Oranges on the other hand can vary in size and quality. All this means is that its easier to come up with a price of a currency or Ether: once again, just what buyers and sellers will agree on. Many people might not realise that other currencies work exactly the same - if you are holding a coin or note of your own local currency in your hand, at any given point in time there are millions of people buying and selling your local currency, so while you might observe it as stable, its value actually continuously changes. When you want to exchange it for another currency at a currency desk, lets say for USD, one day you pay 10 local currency to a dollar, the next day maybe 11 or 9. Continue reading >>
Gas - What Gives Ether It's Intrinsic Value? - Ethereum Stack Exchange
I think this question is out of scope for this stackexchange and voted to close it, but since it's still open... (note that the first several sections are greatly-simplified world-views and thus opinions; the last section is very subjective). N.B. that I do not possess a finance background and that for answering your question about intrinsic value, I'm using a definition aligned with an intrinsic theory of value , not a subjective one, as, say, working from a marginalistic framework; the rest is generally applicable. Things have value if there is a demand for them. The value is higher the harder it is to obtain them. For example, your family heirloom watch is one of a kind (due to its provenance) and may be priceless to you. However, the watch might be one of many to a watch collector and thus is of lower value. If the price a buyer is willing to pay for something is greater than the price the owner is willing to part with it for, then an exchange can take place. So if your watch would fetch $1000 on the open market, even if someone is willing to offer you $10000 for it, you wouldn't sell. Similarly, if you had a second watch that was otherwise identical to your heirloom watch, you'd accept an offer of $10000 but reject a low-ball offer of $900 since you could go elsewhere to sell it. Your classic supply and demand. Note that the intrinsic value of any two similar watches is equal: it is whatever the value of being able to keep time is (multiplied by the lifetime of the watches). The additional sentimental value of the heirloom is extrinsic (or subjective) value. Let's look at fiat currencies, first. Why are they valuable? To understand that, we need to step back and look at asset-backed currencies. In the past (and now, but just to a different extent), people valued g Continue reading >>
Whats The True Value Of Cryptocurrencies?
The recent trend in coin offerings, including Tezos massive raise, has put a spotlight on cryptocurrencies. The valuation of the worlds leading crypto currency, Bitcoin exceeded US$ 100 billion recently. Are cryptocurrencies overvalued and due for a correction? Perhaps. In this series (1/3), I will attempt to identify sources of demand of cryptocurrencies and to develop a framework for looking at their value. The source of demand for cryptocurrencies is derived from their attributes as a medium of exchange and that as a store of value. They are not yet useful as a unit of account but that could change. In this post, I will look at the value of cryptocurrencies as a medium of exchange, particularly, as an enabler of the internet of money and the implications of this on their value. The most fundamental use-case of cryptocurrencies is the role they are beginning to play as a medium of exchange on the internet. a. Peer to peer payments (VOIP:Talk:: Cryptocurrencies:Payments) Cryptocurrencies are creating opportunities for a massive scale-up in peer-to-peer payments. Firstly, they can reduce the cost of transactions. They can do this by removing intermediaries and developing a lower-cost consensus system to validate transactions. This is opposed to the centralized trusted payment infrastructure which has always been necessary for transferring value. This layered interaction involving multiple intermediaries adds costs to the transfer of value. Secondly, they can remove friction from transactions creating opportunities for seam-less transfer of value across peers. Come to think of it, the original Paypal innovation of being able to email money was at its heart about making payments frictionless (and secure). In fact, the first killer app for the mainstreaming of cryptocurre Continue reading >>
How To Beat Fomo: What Are Bitcoin & Ethereum Worth In2020?
How to beat FOMO: What are Bitcoin & Ethereum worth in2020? 6/13/17 Edit: updated with feedback from a few Redditors Its been a big year for cryptocurrencies, with the total market cap for crypto jumping 6x since January 1st - from $18B to over $111B as of June 13th. The FOMO (fear of missing out) is real. New money is entering the market at a staggering rate - to the degree that many exchanges have had problems on-boarding and verifying their new customers to keep up with demand. These new investors are coming in droves after hearing about sky-high returns from a friend or friends friend or a friend of a friends friend. Once theyve gotten through the verification process on Coinbase or Gemini or Kraken, they execute their first market order and the rush of the cryptocraze washes over them. To the MOON! Then price drops by 10%, our new investor freaks out, convinces themselves that theyre hardly ever right, that ETH or BTC is going to $0 and that they should just cut their losses. They panic sell, adding fuel to the micro-bear run and the price continues to drop. Whew, that was close. Got out just in time. A short time later, they see that the price is not only retracing back toward their entry price, soon theyll realize that it will exceed it. They just bought high and sold low. They leave the market. Recent moments of FOMO in BTC & ETHtrading Weve seen this play out a number of times this year, and as an investor myself, I too get concerned when I see the price of ETH & BTC begin a FOMO trend. Ive seen the value of my portfolio drop by 2050% in hours. However, in order to counteract FOMO and any knee-jerk panic selling reaction I might have, Ive done two things: First, Ive taken my coins off of the exchanges. This prevents me from having my finger on the trigger and Continue reading >>
What Is Ether?
Ether is a necessary element a fuel for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources). If you just want to test the technology, you probably don't need real ether. Download the latest Wallet app and switch to the Test Network Check your ether presale balance safely here: The total supply of ether and its rate of issuance was decided by the donations gathered on the 2014 presale. The results were roughly: 60 million ether created to contributors of the presale 12 Million (20% of the above) were created to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation 5 ethers are created every block (roughly 15 seconds) to the miner of the block 2-3 ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn't included (called uncle/aunt reward) Note that after the Byzantium update is implemented, the mining and uncle reward is reduced to 3 ethers and 0.625-2.625 ethers, respectively. No. According to the terms agreed by all parties on the 2014 presale, issuance of ether is capped at 18 million ether per year (this number equals 25% of the initial supply). This means that while the absolute issuance is fixed, the relative inflation is decreased every year. In theory if this issuance was kept indefinitely then at some point the rate of new tokens created every year would reach the average amount lost yearly (by misuse, accidental key Continue reading >>