BASICS
How to Become Financially Successful?Jul 01
Cryptocurrencies Review – BTC vs. ETH
Bitcoin is the first digital cryptocurrency allowing people all around the world to send, buy, sell and store the value. People don’t have to trust or rely on traditional financial infrastructures such as banks, brokers, etc. Ethereum, on the other hand, was created to extend the functionality of Bitcoin, providing a kind of programmable currency allowing developers to build decentralized applications leveraging crypto payments.
Intended Purpose
As a digital currency, Bitcoin aims to provide a means for users to make global payments that are much faster and cheaper than those settled with fiat money. When sending funds, Bitcoin users pay a network fee to process the transaction. This is unlike the traditional system where intermediaries like banks may charge percentage fees on each transfer. Fees in the Bitcoin network are independent of the transferred value and are distributed to participants who maintain the network, known as miners, as compensation for their work. Network fees vary based on the size of the transaction.
Whereas Bitcoin was created to be an alternative to traditional currencies, Ethereum's native asset, Ether, is a cryptocurrency that serves as fuel for the Ethereum ecosystem. The platform itself provides tools for creating automated, “trustless” programs known as smart contracts. Running without any downtime or reliance on a centralized governing entity, smart contracts provide a means for users to securely make payments and interact with digital services. The main benefit of smart contracts is in their trustless nature, which eliminates the need for interacting parties to trust one another. The exact flow of any funds they may send can be verified by checking the smart contract’s code.
Releases
The Bitcoin whitepaper was published in 2008 by Satoshi Nakamoto. He (or she, who knows) outlines BTC as a digital asset, how it works, what makes it a viable store of value, and how it can be used to send money in a peer-to-peer fashion.
Proposed by Vitalik Buterin, Ethereum went live in 2015 after its development was crowdfunded a year ago. Since then, the network itself has established itself as the world's second-largest cryptocurrency by market capitalization, while currently holding the title of the most widely adopted decentralized software platform by blockchain developers.
Advantages of Cryptos
24/7 Availability
You want to send money to your friend living abroad and it’s the weekend. Even if Monday is coming soon, the transaction will take days to be finalized. Banks will give you 3 business days and if you are on Friday night, it will be 5 days in total for your money to be delivered to your friend. And you also need to convert your currency to that of your friend’s, which will lead to a loss of value due to the additional charges and fees. You can use cryptos instead. They ensure a fast transaction speed regardless of the locations of both parties and your transaction will be completed in just a few minutes or even seconds for some providers.
Investment
Let’s say you are a good saver and want to put your money to gain more by investment. You deposit your money to a bank and get interest rates which will be very low in terms of getting sufficient from your investment. However; by using applications built on the Ethereum network, you could make your money available to be borrowed directly by other network users. Thus, you can earn interest payments, which are significantly higher the bank’s savings accounts. Also, you can use your deposit to take loans in other currencies in the crypto market. You will not need to struggle with the bank’s procedures, paperwork, etc. You will just use your savings as collateral and that will be all.
Intended Purpose
As a digital currency, Bitcoin aims to provide a means for users to make global payments that are much faster and cheaper than those settled with fiat money. When sending funds, Bitcoin users pay a network fee to process the transaction. This is unlike the traditional system where intermediaries like banks may charge percentage fees on each transfer. Fees in the Bitcoin network are independent of the transferred value and are distributed to participants who maintain the network, known as miners, as compensation for their work. Network fees vary based on the size of the transaction.
Whereas Bitcoin was created to be an alternative to traditional currencies, Ethereum's native asset, Ether, is a cryptocurrency that serves as fuel for the Ethereum ecosystem. The platform itself provides tools for creating automated, “trustless” programs known as smart contracts. Running without any downtime or reliance on a centralized governing entity, smart contracts provide a means for users to securely make payments and interact with digital services. The main benefit of smart contracts is in their trustless nature, which eliminates the need for interacting parties to trust one another. The exact flow of any funds they may send can be verified by checking the smart contract’s code.
Releases
The Bitcoin whitepaper was published in 2008 by Satoshi Nakamoto. He (or she, who knows) outlines BTC as a digital asset, how it works, what makes it a viable store of value, and how it can be used to send money in a peer-to-peer fashion.
Proposed by Vitalik Buterin, Ethereum went live in 2015 after its development was crowdfunded a year ago. Since then, the network itself has established itself as the world's second-largest cryptocurrency by market capitalization, while currently holding the title of the most widely adopted decentralized software platform by blockchain developers.
Advantages of Cryptos
24/7 Availability
You want to send money to your friend living abroad and it’s the weekend. Even if Monday is coming soon, the transaction will take days to be finalized. Banks will give you 3 business days and if you are on Friday night, it will be 5 days in total for your money to be delivered to your friend. And you also need to convert your currency to that of your friend’s, which will lead to a loss of value due to the additional charges and fees. You can use cryptos instead. They ensure a fast transaction speed regardless of the locations of both parties and your transaction will be completed in just a few minutes or even seconds for some providers.
Investment
Let’s say you are a good saver and want to put your money to gain more by investment. You deposit your money to a bank and get interest rates which will be very low in terms of getting sufficient from your investment. However; by using applications built on the Ethereum network, you could make your money available to be borrowed directly by other network users. Thus, you can earn interest payments, which are significantly higher the bank’s savings accounts. Also, you can use your deposit to take loans in other currencies in the crypto market. You will not need to struggle with the bank’s procedures, paperwork, etc. You will just use your savings as collateral and that will be all.
