Bitcoin vs gold business insider
Bitcoin bitcoin vs gold business insider much like Magrathea and the Alt-coins in the cryptocurrency universe are like the planets that get built. Altcoins are cryptocurrencies other than Bitcoin. Altcoin is a combination of two words: The majority of altcoins are forks of Bitcoin and are slight changes to the underlying Blockchain.
Altcoins are the later alternative cryptocurrencies launched after the immense success Bitcoin had after its release in After the Bitcoin became a success, many other peer-to-peer digital currencies have emerged in an attempt to imitate it. Alternative currencies aim to be better substitutes to Bitcoin, or serve different niche markets. I was having a conversation with a friend the other day about Bitcoin, Ethereum, Litecoin and all of the other cryptocurrencies that exist out there.
As of last week there were over different cryptocurrencies in existence. My friend is bitcoin vs gold business insider well educated guy who has a graduate degree in engineering from a top school.
So after taking a deep breath and thinking for a minute I bitcoin vs gold business insider up with this explanation. After I explained the basics of what a cryptocurrency is and how blockchain works I began to tackle the differences between the most popular cryptocurrencies: Bitcoin, Litecoin, and Ethereum. Bitcoin is the original cryptocurrency. It is gaining acceptance as a way to transact business with many online and some offline retailers. If I was to find a comparison that people can easily relate it to is Gold.
Now I am not saying Bitcoin is exactly like gold but it makes for a good analogy. There is no intrinsic value for gold, just like Bitcoin. The value for both is bitcoin vs gold business insider by the markets and fluctuate based on the market forces.
They are both mined, one by large equipment and one by computers. You can convert the hard form of gold into cash based on the spot price just like you can convert a Bitcoin into cash in your bank account. One of the challenges for Bitcoin is the speed of processing transactions and scalability, which may limit its uses not unlike gold which has limited uses.
For the hitchhikers guide Bitcoin vs gold business insider is Magrathea. Litecoin is one of the first cryptocurrencies to be considered a Bitcoin clone, also known as alternative coins bitcoin vs gold business insider alt-coins.
It has a slightly different algorithm and it allows for faster transaction processing than Bitcoin. If I were searching for a commodity comparison it would be Silver. Silver is used as a part of coins and can be used for financial transactions quicker and easier than gold can just like Litecoin is faster for transactions than Bitcoin. I know this is a little bit of a stretch but I am using it to illustrate how the different cryptocurrencies function.
Bitcoin vs gold business insider may have a broader use case than gold as well since it is the most electrically conductive metal. The planetary comparison is Brantisvogan, where most of the galaxies bank accounts are held.
So when I was searching for a comparison the only think I could come up with was oil. Oil as a commodity helps fuel much of what gets done in the world just like their blockchain for Ethereum drives much of what is happening in the world of decentralized applications. Ethereum would be Megabrantis Cluster in galaxy terms. It is a powerful backbone technology that many of bitcoin vs gold business insider future uses for Blockchain will be built.
So what does it all really mean? Fundamentally the underlying Blockchain technologies for bitcoin vs gold business insider of the cryptocurrencies operate under different rules which makes them candidates for different types of uses. Just like there are s of planets across the Hitchhikers galaxy each has a slightly different makeup form and purpose.
Some of the planets or alt-coins belong on the outer-fringes of the outer rim because they are not good for supporting life and others like Magrathea Bitcoin significant role in the galaxy. When I think of the word token I think of a little plastic chip that you get at a casino that I can exchange for a drink or in Hitchhiker parlance they are Altair.
In the beginning of the digital world a token is a string of characters that help identify you when you enter your email in a website or online login. Now in the world of cryptocurrency the token can not be a string of characters because they could be easily copied.
Instead they exist as entries on the blockchain ledger. Bitcoin vs gold business insider tokens establish your ownership and you have a unique key for the tokens you own.
There are two types of tokens in the crypto world, intrinsic tokens and asset backed tokens. Intrinsic tokens are often called native or built in tokens, because they are native to the specific blockchain technology.
Intrinsic tokens are the coins that get mined by the software from the actual blockchain. There are many different intrinsic tokens since there are over cryptocurrencies currently. Asset backed tokens are the digital equivalent of the IOU that was created back bitcoin vs gold business insider the 17th century when people would park their gold with a goldsmith. These notes could be transferred from person to person, and anyone holding those notes could go back to the goldsmith and claim the actual gold.
Asset-backed tokens are the digital equivalent. They are claims on an underlying asset like the goldthat you need to claim from a specific issuer the goldsmith. This is the main type of token that is purchased if you are using a system like Coinbase where you send cash from your bank account and get a token in exchange. You will have to go back to Coinbase to exchange that token to get the cash back into your bank bitcoin vs gold business insider. Initial coin offering ICO is an unregulated means of crowdfunding via cryptocurrency.
ICOs, on the other hand, sell a right of ownership or royalties to a blockchain project. The coins that are issued in an ICO is an ownership interest that in many cases includes voting rights in the private company similarly to owning a share of stock in a public corporation. I am not saying that the risks are the same in owning a share of stock or a coin issued in an ICO, just that structurally there are similarities.
The first token sale was held by Mastercoin in July bitcoin vs gold business insider Ethereum raised money with a token sale in As of Maythere were approximately 20 token sales happening every month. This is a significant amount of capital being raised by private companies in a fairly unregulated way.
In July the U. The SEC did not state that all blockchain tokens ICOs would necessarily be considered securities, but that determination would be made on a case-by-case basis. But pack your bags folks we are only beginning to explore the new universe of cryptocurrency. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.
Comments concerning past performance of any security mentioned are not intended to be forward looking and should not be viewed as an indication of future results.
A final chapter is devoted to the Poisson process as a means both to introduce stochastic processes and to apply many of the techniques introduced earlier bitcoin vs gold business insider the text.
This was encouraging so the next stop was the wiki. It presents new approaches and methods based on operations research, artificial intelligence and computer sciences techniques for design of production systems, supply and inventory management, production planning and scheduling, facility location, transportation and logistics, supply flow optimisation via simulation, etc.
We have been hale to help hundreds of crypto investors with their portfolios.
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