Ethereum: Why “change” in Bitcoin?
The relationship between Bitcoin (BTC) and Ethereum (ETH) has always been a topic of interest to cryptocurrency lovers. One of the aspects, which often causes curiosity, is the concept of “change” – especially why people are willing to replace one resource for the other. In this article, we will break into the causes of changes in the crypto currency, such as Bitcoin and Ethereum.
KRIPTOVALUTE EVOLUTION
At the beginning of 2000 Bitcoin was one of the first decentralized digital currencies. Its creator Satoshi Nakamoto imagined a system that would allow safe, transparent transactions based on the community without intermediary. The initial reception of bitcoin is largely caused by novelties and desire for a new form of money.
Ethereum, introduced to the 2015 market, built for Bitcoin success, introducing intelligent contracts, which are only -sufficient contracts with the terms of the contract registered directly in the code lines. This function has made it possible to create decentralized applications (DAPPS) that can be built on the Ethereum platform.
Concept of Change
In the context of the Crypto currency, the “change” refers to the procedure of replacing one resource to another. In the case of Bitcoin and Ethereum, it means trading one cryptic currency after another. The course between these two assets determines how much value can be obtained in return for what you have.
There are several reasons why people are interested in changing their crypto currency:
- New Investment Opportunities : For those who already have Bitcoin or Ethereum, they may want to diversify their portfolio by investing in other crypto currencies that can function well in different market conditions.
- Speculation and Security : Some investors see a change as a way of guessing about future results of a specific cryptic currency, hoping to benefit from fluctuation of prices.
- Investment and proof (POS) : Ethereum mechanism allows users to check the transaction by blocking the coins for a specified period. This procedure can win a rewards in the form of a new ether (ETH), which is used to encourage a validator. Those who want to participate in this process can understand the change as an opportunity to increase their shares and win awards.
- Market moods : general moods and market conditions around the Crypto currency, such as Bitcoin and Ethereum, may affect the desire to change. For example, if there is an increase in interest in some assets, traders can look for changes in another property to use these trends.
Why the change must happen
Although some people can understand the change as a chance to diversification or speculation, others say that this can lead to the instability of the market and the price variability. Here are some reasons why you need to change:
- market piercing : lack of clear regulations and standards in the cryptocurrency space has led to a relatively unregulated market. This can cause manipulation of prices, manipulation of market and other forms of exploitation.
- Scalabiness Challenges
: Limited Bitcoin Transaction Capacity (4 million transactions a day) makes it inappropriate for some applications, such as fast and cheap payments of a cross -sample. This can lead to congestion, high fees and slower processing times.
- Safety fears
: Crypto currencies are sensitive to hacking and other security threats, which can cause significant losses if they are not immediately resolved.
In short, the desire to change is a natural aspect of the crypto -wave market, guided by different factors, such as new investment opportunities, guessing, lifting and market mood.
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