Ethereum Vs Bitcoin – Cryptocurrency Mining

Ethereum Vs Bitcoin - Cryptocurrency Mining

It seems that the fresh hot investment nowadays is cryptocurrency, but for the average person looking to invest te can be hard to learn the differences inbetween all of the “altcoins” out there now. Anyone out there can make their own cryptocurrency so it’s imperative that you learn which coins out ter the wild are established known names and which ones are just ter it for a quick buck. Nowadays, there are indeed two main cryptocurrencies that you should know (and they’re the ones you’ve most likely heard of by now): Bitcoin, the grandfather of all cryptocurrency and Ethereum, the newer more refined cryptocurrency that has seen massive growth overheen the past year.

What is bitcoin? How can I buy “bitcoin stock”?

This seems to be the most confusing part of bitcoin for many fresh investors and those not familiar with the technology, but I’ll cut straight to the pursue: There is no such thing spil “bitcoin stock” spil bitcoin isn’t a specific company you can invest te, it’s an open-source and publicly managed digital currency. So when you think of trading bitcoin, you need to think more like it’s the Forex rather than stocks possessed by a country.

While traditional money is backed by a government’s word, world events, and the overall predicted spectacle of that country’s economy, cryptocurrency is different. Bitcoin and all other cryptocurrencies are backed by a mathematical system where every transaction and the location of every Bitcoin is managed by the “blockchain“. This blockchain is decentralized (that is not wielded by a central governing bod) and any major protocol switches or blockchain switches need to be agreed upon by a majority of “miners”. Thesis miners are bitcoin users or companies who are contributing computing power to the overall network / blockchain.

There is a set number of Bitcoins to be “mined” (Bitcoin is written te a way so that te 2140 no fresh bitcoins will be mined, and it’s capped at 21 million bitcoins to everzwijn exist period). The miners are essentially attempting to find the mathematical “solution” to the encryption used on each coin and when they find the “solution” they are rewarded with the bitcoin, and te addition to this the miners also receive any transaction fees. Thesis two incentives help ensure that mining will permanently be occurring and powering the bitcoin network. Spil a result, the bitcoin network is entirely self-contained and can exist spil a global digital currency without worrying about government entities attempting to control or influence it.

Okay, so how do I buy bitcoin?

While there are numerous services and exchanges that exist out there that permit you to buy bitcoin, typically there are fees involved and bitcoin’s volatility means day trading bitcoin can be a very risky endeavor. Many people who invest into bitcoin get caught up te the daily rates and the onveranderlijk trading eventually leads them to lose their investment. The truth is bitcoin is actually a much safer investment if you hold onto your funds for the long term, and rather than overeenkomst with an exchange spil the middle man you can actually mine cryptocurrency yourself. This also ensures you receive clean freshly mined bitcoin that has never bot used for any fraudulent reasons or other nefarious purposes. Unluckily however, bitcoin mining has become a very saturated industry and with the rise of ethereum, bitcoin isn’t spil lucrative spil it once wasgoed spil many anticipate a mass migration to ethereum once the technology spreads and developers take advantage of the unique capabilities suggested by ethereum.

What is ethereum? Why is it better?

Ethereum is a newer cryptocurrency based off of bitcoin, and it offers essentially the same features with even more improvements. The main difference you need to know inbetween ethereum and bitcoin is that ethereum’s blockchain is much more advanced te that rather than mostly serving spil a transaction ledger, it can actually be used spil a verhoging to host all kinds of applications and contracts. The nature of the blockchain means that it serves spil a decentralized podium that can lightly verify thesis contracts, significantly reducing the risk of fraud. All the computers mining on the ethereum network are essentially treated spil one giant rekentuig where each wise contract or application/process that runs costs a certain amount of “ether” (name for the ethereum currency), further incentivizes the miners overheen bitcoin. The clever contracts and programs that can be ran te the ethereum toneelpodium have almost limitless possibilities, spil te the future wij will see wise contracts not only taking overheen all types of current contracts/agreements, but they can potentially be used to hold stocks with a company, or a government can even use it to permit citizens to securely vote from the convenience of their own huis. This future potential with ethereum and it’s clever contracts is why many see it spil a unavoidable that ethereum will substitute bitcoin spil the gezaghebbend cryptocurrency, and also the reason why ethereum’s value has soared from $Ten/ether last year to overheen $200/ether today, with it expected to grow even more. Bitcoin is at overheen $Two,500/btc today, so you can see the potential growth when it comes to ethereum.

And how do I mine ethereum?

While ethereum can be mined by individuals utilizing huis rekentuig graphics cards, presently this isn’t the recommended method you should go after because the mining difficulty going up could leave you waiting a long time to recover the initial investment of the graphics card and it also requires more technical know-how to setup.

Now that companies have come into the mix and invested into ethereum, cloud mining is the best way for a beginner to invest te ether. Cloud mining is when the mining is done not at huis from a individual rekentuig, but te a gegevens center where all the mining and technical stuff is managed by a company. You pay for a set “hash rate” (basically the mining speed) and that’s it, you just sit back and collect the ether ter your wallet application. If you would like to upgrade zometeen to a higher hash rate (so more ethereum mined every month), then all you have to do is voeling your provider and have them upgrade you, no buying a fresh rekentuig and re-configuring of software required.

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