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Bitcoin & Ethereum

Bitcoin and Ethereum

If Bitcoin seeks to serve as a digital gold, Ethereum has taken a different approach, generalizing so its users can create any number of custom assets and programs governing their operation.

  • Ethereum Blockchain - Today, Ethereum uses proof-of-work mining (in which computers burn energy to solve puzzles needed to create blocks) to power its blockchain.
  • Proof-of-Stake - With the transition to Ethereum 2.0, Ethereum plans to alter its core operating system, migrating to a system called proof-of-stake (PoS).
  • A finite supply - According to the software rules, only 21 million bitcoins can be produced, a limit that gives bitcoins value.
  • Portability - With BTC, you can carry around all your wealth on a flash drive, memorized in your brain or transfer it instantly via the internet.

Among the first to embrace Ethereum were major banks and institutions, who took advantage of its open-source code to create proof-of-concepts and R&D initiatives in 2015 and 2016.

Like paper cash or gold, depending on how you received your BTC it will have varying degrees of fungibility. BTC that was involved in a crime, for example, may not be accepted by exchanges or merchants. (This remains an active area of research for Bitcoin developers.)

For something to store value, people need to recognize and accept that it’s worth something.

  • Acceptability - There are currently thousands of individuals and vendors accepting Bitcoin payments.
  • Buy and sell - You can also buy and sell BTC for other cryptocurrencies alongside more traditional currencies at exchanges like TraderMines.