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 >>
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 >>
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 >>
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 >>
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'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 >>
What Is The Difference Between Bitcoin And Ethereum?
What Is The Difference Between Bitcoin and Ethereum? Opinions expressed by Forbes Contributors are their own. Last year, thanks to stratospheric rises in value, lots of people became aware of the existence of Bitcoin, as well as another often-cited up-and-coming cryptocurrency, Ethereum. By market cap they are the two most valuable cryptocurrencies as of writing (and please note that these numbers fluctuate quite a lot), the total value of all the Bitcoin in existence is $143 billion, while Ethereum sits at $88 billion. For perspective that means Bitcoin is currently held at around the same value as Unilever, whereas Ethereum has around the same market value as Starbucks or Walgreens Boots Alliance. I know that you cant really compare a digital currency to a company but it gives some perspective. Also, before we go any further I just want to reiterate that investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. While to many Bitcoin and Ethereum are both simply examples of cryptocurrencies digital money transfer systems which use blockchain technology and encryption there are subtle differences in how they work and what they can be used for. If you are looking to invest for speculative reasons, or even more so if you are considering using either platform for business its important to understand those differences, because they could be the deciding factor in which coin (if either) goes on to become a widely accepted standard, and which will disappear into obscurity and worthlessness. 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: Differences Between Ether And Bitcoin
Bitcoin vs Ethereum: Differences between Ether and bitcoin Bitcoin vs Ethereum: Differences between Ether and bitcoin BITCOIN and Ethereum have both soared in value over the past 12 months, securing the top two spots in the cryptocurrency market. But what is the difference between bitcoin and Ether? Bitcoin (BTC) is the biggest and best-known cryptocurrency on the planet, but many experts are now tipping its main rival Ethereum to start challenging it for pole position in 2018. Ethereums digital currency, known as Ether (ETH), has soared in value over the past 12 months, appreciating by nearly 12,500 percent. This time last year, a single Ether token was worth less than ($10), compared to more than ($1,240) today (January 12). Despite its remarkable rise, Ethereum still trails far behind bitcoin, which is now worth more than ($14,000) per coin. Bitcoins market capitalisation is also almost twice as much as Ethers - ($227billion) compared to ($120billion). For those new to cryptocurrency, here is a handy guide outlining the main differences between bitcoin and Ethereum. What is Ethereum? Second largest cryptocurrency SOARS Whats the difference between bitcoin and Ether? Both bitcoin and Ether are digital currencies based on blockchain technology that can be used to send money across borders without the need for a traditional bank. The cryptocurrencies can also both be mined, unlike Ripple tokens, meaning users can earn bitcoin and Ether from home - provided they have the right equipment. Click on the following link for more information on bitcoin mining: HOW TO MINE BITCOIN However, bitcoin and Ethereum have fundamentally different purposes. Bitcoin climbed back above $10,000 Thursday for the first time in two weeks Bitcoin was created back in 2009 as an alternative to Continue reading >>
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 >>
Ethereum Vs Bitcoin: The Conclusion
Ethereum vs Bitcoin: Is Ethereum a Better Bitcoin Alternative? As you enter the new and exciting world of crypto, one of the first things you will ask yourself will be about the differences between Ethereum vs Bitcoin. Its quite baffling, right? You may think of Bitcoin and Ethereum, as a lot of us do, as the Apple and Microsoft of crypto. However, unlike Apple and Microsoft, they are completely different from one another. Both have very different objectives in mind. In fact, other cryptocurrencies compare a lot closer to Bitcoin and Ethereum than Bitcoin and Ethereum compare to each other. For example, Litecoin is a lot more like Bitcoin than Ethereum is, and NEO is a lot more like Ethereum than Bitcoin is. Ill get to that in another article, though. For now, lets focus on Ethereum vs Bitcoin. 4.3 Can Bitcoin and Ethereum live side by side? Researching cryptocurrencies and the technologies behind them can be very confusing, which is why I built this guide. Were all beginners at some point. Rest assured, by the end of this guide, youll have a strong understanding of what Bitcoin and Ethereum are, what they do, and how they differ from one another and who wins the Ethereum vs Bitcoin battle. Youll also be able to make an educated decision as to whether you prefer Bitcoin or Ethereum. Ill do this by comparing them, highlighting their differences and looking at the uses and advantages of each. Lets start, shall we? When you look at Ethereum vs Bitcoin, you can see that their goals are largely different. When you look at their market statistics, though, the difference is rather small Bitcoins market capitalization is $147.3b while Ethereums market capitalization is 84.2b. Note: market capitalization (often referred to as market cap is the total value of all coins in existe Continue reading >>
Ethereum Vs Bitcoin: What's The Main Difference?
12/20/2016 08:56 am ETUpdatedDec 06, 2017 Ethereum Vs Bitcoin: What's The Main Difference? While Bitcoin has long been dominant in the cryptocurrency scene, it is certainly not alone. Ethereum is another cryptocurrency related project that has attracted a lot of hype because of its additional features and applications. The first thing about Ethereum is that it is not just a digital currency. It is a blockchain-based platform with many aspects. It features smart contracts, the Ethereum Virtual Machine (EVM) and it uses its currency called ether for peer-to-peer contracts. Ethereum's smart contracts use blockchain stored applications for contract negotiation and facilitation. The benefit of these contracts is that the blockchain provides a decentralized way to verify and enforce them. The decentralized aspect makes it incredibly difficult for fraud or censorship. Ethereum's smart contracts aim to provide greater security than traditional contracts and bring down the associated costs. The smart contract applications are powered by ether, Ethereum's blockchain based cryptocurrency. Ether, as well as other crypto-assets, are held in the Ethereum Wallet, which allows you to create and use smart contracts. The system has been described by the New York Times as.. "a single shared computer that is run by the network of users and on which resources are parceled out and paid for by ether." Implement Smart Contracts With Your Own Cryptocurrency Ethereum allows you to create digital tokens that can be used to represent virtual shares, assets, proof of membership and more. These smart contracts are compatible with any wallet, as well as exchanges that use a standard coin API. You can copy the code from Ethereum's website and then use your tokens for many purposes, including the repr 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 >>
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 >>