The Flippening: Ethereum Vs.bitcoin
Cryptocurrency Enthusiast. Entrepreneur. MIT Sloan Class of 2020. If youve been in the cryptocurrency space for more than a month, chances are youve come across the term Flippening. As silly as it may be to pronounce, the term refers to the foretold event in the possible future that Bitcoin will be dethroned by another cryptocurrency. One of the major contenders for the championship belt has been Ethereum. In the current midst of the ongoing Bitcoin Crash, this legend is inching toward a possible reality. A couple of weeks ago, I published an article about the 9 Rules of Crypto Trading that focused on rules that Miles follows. Hes one of the founders of Pure Investments , which is a Discord community that focus on cryptocurrency signals. Recently, he published a video on the official Pure Investments YouTube Channel regarding Ethereum and the Flippening. Take a look at the full Ethereum video posted by Miles from Pure Investments Miles is a strong believer in the Flippening. While Bitcoin sustains its current dominance, Miles believes that Ethereums strong value proposition will eventually outshine the current champion with strong reason. One of the major points that Miles argues is the First to Market Dominance claim with Bitcoin. Analogously, we have seen empires like Best Buy and BlockBuster crippled by innovative competition from the likes of Amazon and NetFlix. Apart from this, Miles also argues that Blockbuster: Rent 6, get 1 free; NetFlix: Get all you want for $10/month. Mining Ethereum blocks takes about 14 seconds per confirmation compared to Bitcoins 10 minutes. Bitcoin, which is a behemoth that is becoming very comfortable on its throne, cannot offer the blockchain confirmation speed (well, arguably it can in the future with Lightning Network) of Ethereum. I Continue reading >>
Bitcoin Vs. Ethereum
A smart contract is a type of autonomous decentralized application. Autonomous. Its automatic and can run itself. Decentralized. Its not held in any one place or owned by any one person. Instead, its part of the blockchain. This implies its tamper-proof and very reliable. Smart contracts are one of the reasons everyones so excited about cryptocurrencies and the blockchain. Its like having a robot that can do things automatically and cant be hacked or tampered with. For example, someone could put $500 into an account guarded by a smart contract and set it up to send $5 to someone each year for their birthday over the next 100 years. They can do this with 100% certainty that the money will be sent exactly as programmed, and 100% certainty that no one can ever tamper with that program or steal the money. Without smart contracts, youd have to give the money to someone else and then trust them to send it onwards, even after youre gone. The blockchain is common to both bitcoin and Ethereum, as well as (almost) all cryptocurrencies. The decentralization of the blockchain system is what makes it 100% reliable and tamper-proof. But being able to program various functions into the blockchain, like sending $5 a year for 100 years, is the smart contract in action. Thats what Ethereum added. As you can imagine, smart contracts have enormous implications for businesses in almost any industry. A lot of the new cryptocurrencies being created these days are offering built-in smart contract technology. There are a lot of similarities other than the programming. Both coins are valuable: At the time of writing, bitcoin and Ethereum are the No. 1 and 2 coins, respectively, in terms of market cap. Theyre the worlds biggest and most valuable cryptocurrencies. Both coins are popular: Even wit Continue reading >>
Why Is Ethereum Different To Bitcoin?
Ethereum differs from Bitcoin in 7 main ways: 1. In Ethereum the block time is set to 14 to 15 seconds compared to Bitcoins 10 minutes. This allows for faster transaction times. Ethereum does this by using the Ghost protocol. 2. Ethereum has a slightly different economic model than Bitcoin Bitcoin block rewards halve every 4 years whilst Ethereum releases the same amount of Ether each year ad infinitum. 3. Ethereum has a different method for costing transactions depending on their computational complexity, bandwidth use and storage needs. Bitcoin transactions compete equally with each other. This is called Gas in Ethereum and is limited per block whilst in Bitcoin, it is limited by the block size. 4. Ethereum has its own Turing complete internal code... a Turing-complete code means that given enough computing power and enough time... anything can be calculated. With Bitcoin, there is not this form of flexibility. 5. Ethereum was crowd funded whilst Bitcoin was released and early miners own most of the coins that will ever be mined. With Ethereum 50% of the coins will be owned by miners in year five . 6. Ethereum discourages centralised pool mining through its Ghost protocol rewarding stale blocks. There is no advantage to being in a pool in terms of block propagation. Continue reading >>
Bitcoin Vs. Ethereum
/ 9 Comments /in Digital Literacy /by Chris Castiglione Whats the difference between Bitcoin and Ethereum? First, its important to understand that there are two categories of digital coins:Cryptocurrencies (e.g. Bitcoin, Litecoin, Monero, ZCash, etc) andTokens(e.g. Ethereum, Filecoin, Storj, Blockstack, etc.) Bitcoin is a cryptocurrency. Bitcoin and other cryptocurrencies are competing against existing money (and gold) to replace them with a truly global currency. A global currency which allows individuals to own their own money (without having to rely on national banks). Lower fees for transferring money across geographic borders. Financial stability for people who live in countries with unstable currencies. (e.g. In 2016, the Venezuelas currency hit an inflation rate of 800%). In addition, two-thirds of the current global population has no access to banking, or limited access Bitcoin is changing that. Ethereum is a token.What Bitcoin does for money, Ethereum does for contracts. Ethereums innovation is that is allows you to write Smart Contracts: basically any digital agreement where you can say if this happens, then something else happens. For example: If I vote for the President, then my vote is official and no one else can vote as me. If I sign my name on this document, then I own the car, and you no longer own the car. Up until now weve carried out these agreements with a signature at the bottom of a paper document. Ethereum dramatically improves this model because it is digital, and proof of the transaction can never be deleted. Vitalik Buterin; Other co-founders include Gavin Wood and Joseph Lubin Deflationary (a finite # of bitcoin will be made) Inflationary (much like fiat currency, where more tokens can be made over time) 12.5 at the moment. Half at every 210 Continue reading >>
Is Ethereum Better Than Bitcoin? Why Or Why Not? Is It Like Comparing Apples To Oranges?
Bitcoins sole purpose is to be the virtual currency of the internet, and uses blockchain to do this. Ethereum was created in 2015 by a man called Vitalik Buterin. Vitalik had the vision of not only having a decentralised cryptocurrency (like Bitcoin) but also allowing decentralised applications to be created on the Ethereum blockchain that use Smart Contracts. The whole idea of blockchain is to remove the power from the third parties and allow the user to control their own data. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk. To understand this better, Im going to give an example of how decentralised apps and smart contracts will change the world we live in: Ill use pizza as my example, because everyone can relate to pizza! Say you wanted to order pizza to your house, you have to create an account, enter your banking details and give the app your address to receive your pizza. Many people overlook the risks that are associated with trusting a third party to handle such sensitive data. If this companys serves are hacked into, the hacker will have your bank details and your address Scary stuff. So, you ordered a chicken BBQ pizza, which is everyones favorite, and they turn up with a ham Continue reading >>
How Is Ethereum Blockchain Different From Bitcoins Blockchain?
Bitcoin and Ethereum are two cryptocurrencies that need no introduction for anyone active in the cryptosphere. However, if you are new to the ecosystem, you will definitely ponder over what makes Bitcoin and Ethereum different when both of them are blockchains . Different Types Of Blockchains In The Market and Why We Need Them Well, the answer is simple but difficult to explain. I will still go ahead with it and try to throw some light on it. But before I tell you more about the difference between Bitcoin and Ethereum blockchains, I would highly recommend you go through the links below. These will give you a fair idea about the two cryptocurrency giants. Now that you have read the aforementioned articles, I am assuming you have a fairly good idea of both cryptocurrencies. Let us now get into the specifics of each blockchain and see what makes them different. Bitcoin is the worlds first fully-functional cryptocurrency that is truly decentralized, open-source and censorship-resistant. It was invented by Satoshi Nakamoto in 2008-2009 as a peer-to-peer electronic cash system to give the world an alternative to the traditional banking system. Satoshi wanted to make things simple and that is why he made Bitcoins protocol or Bitcoins blockchain just well enough and perfect to store, handle and perform Bitcoins all transactions since the very start of the network. In other words, Bitcoins blockchain is a worldwide shared ledger that ensures easy accounting and transfer of value(i.e. money) in the form of bitcoins. This Bitcoin is created by a process called mining and is held on Bitcoins blockchain. Also, unlike traditional money, you can send Bitcoin money to anyone and anywhere without seeking permission from banks or governments. ( Read about Bitcoin mining here ) Bitcoins Continue reading >>
2018 Might See The Shift Away From Bitcoin, Ethereum Might Be Able To Provide The Best Return (ethereum Predictions 2018) Ethereum Vs Bitcoin News -sat Nov 03
John McAfee (@officialmcafee) November 29, 2017 Bitcoin Price Prediction Tracker portal, Bircoin.top , did the maths and explain that Bitcoin needs to grow daily at 0.4840957034310259%per day.to meet McAfees prediction. Currently, Bitcoin is around $ 8,207 compared to $7,171. Cool right? However, to hit McAfees target, BTC would end the year just over $29k. [perfectpullquote align=full bordertop=false cite= link= color= class= size=]BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020. I will still eat my d**k if wrong John McAfee[/perfectpullquote] Apart from the economics behind the limited supply of Bitcoin, his prediction considered the factors like the increased adoption of Bitcoin and blockchain as well as a total cryptocurrencysmarket cap around $162 billion which gives large room for growth. Expect stability only after 10 years Kristjan Dekleva (Hedge) The Swiss-based financial expert will have us brace up for a decade of turbulence before any hope for a stable bitcoin. This he suggests will coincide with a general acceptance of Bitcoin even in hard-stance China. This though, not as a fiat replacement but a viable alternative. [perfectpullquote align=full bordertop=false cite= link= color= class= size=]In my opinion, it will be at least 10 years before we see stability. Kristjan Dekleva (Hedge)[/perfectpullquote]The finance expert at cryptocurrency project Hedge sees Bitcoin investments as all-too-similar to the DotCom bubble of the 90s. So Mr. Dekleva, what are we having for supper in 2018? [perfectpullquote align=full bordertop=false cite= link= color= class= size=]In the short-term, falls have been driven by emotion and in many cases disinformation a small rumor can have a big impactDemand is drive Continue reading >>
Bitcoin's Biggest Competitor Isn't Ethereum -- It's This
Bitcoin's Biggest Competitor Isn't Ethereum -- It's This Could this cryptocurrency one day dethrone the almighty bitcoin? To borrow and modify a catchphrase from sports commentator Dan Patrick: "You can't stop cryptocurrencies, you can only hope to contain them." Since the year began, the aggregate value of all cryptocurrencies combined has surged from $17.7 billion to a fresh all-time high of $305 billion, as of Nov. 27. In less than 11 months' time, the value of all virtual currencies has risen by more than 1,620%! Mind you, the stock market, inclusive of dividend reinvestment, has historically gained about 7% per year. Digital currencies have absolutely left traditional assets in their dust this year. Leading the charge is bitcoin, which appears to be knocking on the door of $10,000 per coin. Bitcoin began the year below $970 a coin, so it's had an incredible run. Its current market cap of $162 billion actually places it ahead of Dow Jones Industrial Average stalwart General Electric. Bitcoin's biggest competitor isn't Ethereum Bitcoin isn't alone. In fact, CoinMarketCap.com lists 1,327 different investable virtual currencies as of Nov. 27 -- many of which have their very own underlying blockchain. Blockchain is the digital and decentralized ledger that records transactions without the need for a financial intermediary like a bank or credit union. With a low barrier to entry -- i.e., anyone with time, knowledge, and funding can create blockchain -- competition among virtual currencies and their blockchains can be fierce. The biggest competitor to bitcoin and its crypto-empire might appear to be Ethereum. Ethereum has the second-largest market cap of any digital currency, and it's had an even better year-to-date performance than bitcoin. Further, its blockchain is be Continue reading >>
Im Not Worried About Bitcoin Scalability, But I Am Losing Sleep Overethereum
Economist & investor, Editor in Chief at Adamant Research Im not worried about Bitcoin scalability, but I am losing sleep overEthereum With the recent surge in the Ethereum price (ETH reaching 30% of Bitcoins market cap at nearly $5 billion), I find myself reassessing a number of my conclusions, to the point where Im wondering whether it could overtake Bitcoin as the dominant cryptocurrency at some point in the future. Because of various network effects, I hold a cryptocurrency maximalist position, believing that one protocol will eventually win +80% of the market. With that as a given, I currently have a binary view on the ecosystem: either Bitcoin will win, or Ethereum. Here are my assumptions about the Ethereum (ETH) blockchain, compared to Bitcoins: Turing vulnerable, i.e. has a much larger attack surface On track towards a more centralized future Its proposed proof-of-stake mining algorithm wont be more efficient than proof-of-work Will suffer more blockchain bloat than Bitcoin, leading to more risky design paths such as sharding. Based on these assumptions, I had until recently projected a path forward where Bitcoin continues to dominate the cryptocurrency market. However, the following observations give mepause: Ethereum Enterprise Alliance is making a good impression, lending the Ethereum project credibility in the highest levels of finance. Bitcoin faces a scaling bottleneck with no clear short term solution Ethereums current on-chain tx fees are much lower than Bitcoins Its great flexibility makes it attractive to developers Several projects are making the transition to the Ethereum platform, or are creating applications for it: Brave , Storj , Shapeshift . The NY Department of Financial Services (DFS) has given Coinbase official authorization to offer ETH to Continue reading >>
23 Answers - What Is Ethereum And How Is It Different From Bitcoin?
What is Ethereum and how is it different from Bitcoin? Lets start with what they have in common: Ethereum, however, uses Smart Contracts. Ethereum is like a World Payment System, that can be automated, personalized, but can never be censored. Simply put, Bitcoin can be described as digital money. Bitcoin has been around for eight years and is used to transfer money from one person to another. It is commonly used as a store of value and has been a critical way for the public to understand the concept of a decentralized digital currency. Ethereum is different than Bitcoin in that it allows for smart contracts which can be described as highly programmable digital money. Imagine automatically sending money from one person to another but only when a certain set of conditions are met. For example an individual wants to purchase a home from another person. Traditionally there are multiple third parties involved in the exchange including lawyers and escrow agents which makes the process unnecessarily slow and expensive. With Ethereum, a piece of code could automatically transfer the home ownership to the buyer and the funds to the seller after a deal is agreed upon without needing a third party to execute on their behalf. The potential for this is incredible! Think of the numerous applications that act as a third party to connect you with others based on some set logic (e.g. Uber, Airbnb, eBay). Many of the centralized systems we use today could be built in a decentralized manner on Ethereum. With Ethereum you can make these transactions trustless which opens up an entire world of decentralized applications. Decentralization is important because it eliminates single points of failure or control. This makes internal collusion and external attacks impractical. Decentralized plat Continue reading >>
Bitcoin Vs Ether Vs Litecoin Vs Ripple: Differences Between Cryptocurrencies
By now, you've no doubt heard about the massive bitcoin rally this year . And you may also have read about other cryptocurrencies, such as litecoin and Ethereum , surging too. But there are over 1,300 cryptocurrencies in existence. And while bitcoin dominates the market, several other digital currencies are making waves. CNBC has created a brief guide on how the top five cryptocurrencies by market capitalization, or value in the world, have performed so far this year, and what the differences are between each of them. All market cap and year-to-date rise figures are accurate as of December 14. But because of the frenzy around bitcoin, transaction times have spiked, which could go against the original aims of the cryptocurrency. While Nakamoto referred to bitcoin as electronic cash, many experts have called it "digital gold" and said it could be a long-term store of value. At the moment, some retailers in Japan have begun accepting bitcoin as payment and there are even instances of real estate firms accepting it too . But there is little evidence of widespread use of bitcoin for payments. Ethereum is the name of a blockchain company that has created the digital token ether. But Ethereum and ether are now used interchangeably to refer to the cryptocurrency. Ether is backed by a blockchain, much like bitcoin, but the technology is slightly different and aimed at a specific use case: smart contracts. Take a trade finance deal, for example. This relies on each party in the deal having a paper or digital copy of the contract and needing to update it individually. It's arduous and prone to error. But a smart contract is one that is written in code into a blockchain. Once the terms of the contract are met by each party, a deal will be executed. Many major organizations are exp Continue reading >>
Bitcoin Vs Ethereum: The Battle Between Worlds Biggest Cryptocurrencies
The cryptocurrency market has long been dominated by Bitcoin but tech experts are predicting that Ethereum could be set to take a chunk of its share. Sam Forsdick looks at the Bitcoin vs Ethereum battle The number of different cryptocurrencies now tops 2,000 following a surge in their popularity last year yet many analysts reduce the market to a straight Bitcoin vs Ethereum fight. The two digital currencies differ from regular money in the fact they offer peer-to-peer transactions and operate independently of a central bank. A cryptocurrencys outsourced nature makes it theoretically immune to government interference or manipulation, according to Investopedia . The fact its value is unregulated and not tied to a material good means that both Bitcoin and Ethereum can wildly fluctuate in value. A huge upsurge in the value of Bitcoin, which peaked in December 2017 at a value of 15,169 per coin, means it has remained the most popular cryptocurrency throughout 2017-18. However, as one tech expert is predicting that Bitcoin will soon lose half its share to Ethereum, we look at the Bitcoin vs Ethereum battle for prominence. Since first launching in 2009, Bitcoin has enjoyed market dominance. According to Coin Market Cap , Bitcoin had a 51% share of the crypto market on 1 October 2018. Its value now stands at roughly a third of its December 2017 peak, now at 5,056. This has brought it closer to its nearest competitor Ethereum. There are now 17 million Bitcoin units in circulation, but supply isrestricted by mining a process of making new cryptocurrency units that requires computers to solve complex tasks. It is much more commonly used for making transactions and storing money and therefore plays a much more similar role to that of a traditional bank. Also, as it is currently th Continue reading >>
Will Ethereum Be A Better Investment Than Bitcoin In 2018?
By UseTheBitcoin in Cryptocurrency News Home In 2009, Bitcoin was introduced and not many people knew about it. Over time, when people learned about the decentralization from fiat money, they learned they can be more free. No more worrying about your money being frozen from big banks and intermediaries like PayPal. You are your bank now. However, Bitcoin got much bigger than most people thought and it did that very fast. With its increase in price so quickly, it has suffered an increase in transaction fees and also a slowdown in its transaction speed. However, it is still useful. When Ethereum came out, it was looked down upon because the market hadnt matured yet. No one understood much about cryptos beyond the peer to peer transfer. When the difference between Bitcoin and Ethereum was established, that is when we had a surge of the altcoin rush. This caused prices to skyrocket on all altcoins. It seems as if the roles have been reversed and there is more doubt on Bitcoin than anything else. This is why we recommend you hodl Ethereum over Bitcoin. With Bitcoins increase in price, it has been dubbed as gold 2.0 because of its store of value like feature. It is the most expensive cryptocurrency and it actually has the highest market cap. Bitcoin has also been the most resilient. It has the ability to drive the market up or down. If people start taking money out of Bitcoin, expect the whole market to come down. The vice versa also happens. With Bitcoins recently mempool always being full along with the transactions being so expensive, people are looking for other routes. There are upgrades that are expected to fix this but it doesnt seem like it will be here anytime soon. This is called Lightning Networking and it will have an effect on many other cryptocurrencies too. Et Continue reading >>
Ethereum Vs. Bitcoin: Whats The Difference?
Ethereum vs. Bitcoin: Whats the Difference? In 1999,economics Nobel Prize winner Milton Friedman said, I think the internet is going to be one of the major forces for reducing the role of government. The one thing thats missing, but that will soon be developed, is a reliable e-cash. Ten years later, the digital currency Bitcoin was born. And for some time, this cryptocurrency dominated the market as Bitcoin rose to become the largest blockchain network. But recently, a new player entered the scene: Ethereum. The founder of this blockchain technology, Vitalik Buterin , envisioned a different path one that would include cryptocurrency but wouldnt be limited to it. But first, lets back up. What are Bitcoin and Ethereum and, more importantly, what are the differences between the two? At first glance, they might look pretty similar, but if you dig a little deeper, there are some major differences between the two technologies. Bitcoin was created by Satoshi Nakamoto, which is thought to be a group of people rather than a single person. The group first published a white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System , which described exactly what Bitcoin is and how it works. Then, during 2009, the cryptocurrency Bitcoin was launched as an open-source software. At its launch, the exchange rate for Bitcoin was $1 for every 1,309.02 Bitcoins. The rate was created by figuring out the cost of electricity for running the computers that were generating Bitcoins. The first Bitcoin transaction that is known in the crypto community was for two Papa Johns pizzas. A man in Florida named Laszlo Hanyecz completed the transaction for 10,000 bitcoin (about $30 at the time) in exchange for those savory slices. 10,000 bitcoin is now worth about $10 million, to put that into perspe Continue reading >>
Where To Invest In The Next 5 Years? Ethereum Vs Bitcoin
Where to invest in the next 5 years? Ethereum VS Bitcoin Digital asset exchange Kraken and The Economist team up for a crypto-investment case study. Earlier this year, Kraken in partnership with The Economist, launched a contest that posed an important questionto MBA programs across the country. UPDATE: Winners of the Kraken contest have been announced: First place was awarded to the team fromTulane University'sFreeman Schoolof Business who created a minimum-variance portfolio of 67% Bitcoin and 33% Ether based on historical-return data of the two cryptocurrencies. They validated their strategy using a multiple regression model, back-testing and a Monte Carlo simulation. Second place went to the team fromRyerson University'sTed Rogers Schoolof Business who proposed a 69:31 investment ratio for Bitcoin and Ethereum respectively. According to the team, Bitcoin offered a higher expected value, but the volatility and speculative nature of cryptocurrencies indicated a need for diversification across platforms. Third place was awarded toBrigham Young University'sMarriott Schoolof Business who based their Bitcoin-heavy portfolio on the cryptocurrency's established presence in the market, stable functionality and finite supply. The People's Choice Award went to the team fromRyerson University'sTed Rogers Schoolof Business after they received the most votes from the general public You have $1M to invest across bitcoin and ether. You cannot touch your investment for the next 5 years. How much of that $1M do you invest in each? Why? Krakens essential question is, which is the digital asset of the future? In response,13 teams have participated by providing a detailed paper and a short video to express their findings. Through in depth research, detailed analysis, and educated specu Continue reading >>