![]() ![]() ![]() The resources and energy that have been put into the mining of bitcoin can be seen as a reason why the bitcoin has value. The direct costs and opportunity costs of producing a coin are also factors which determine the value of a cryptocurrency. Bitcoin, for example, has a high cost of production. This phenomenon can be seen today, since the FED, the ECB and other central banks have been printing more and more money and keeping interest rates artificially low.įigure 1: Sketch of the differences in the price development of a cryptocurrency (here Bitcoins) and the US Dollar Production Cost This is because you will be able to get more of that currency with your Bitcoins. If the price of a fiat currency falls, then the price of Bitcoin would go up with respect to that currency. If a cryptocurrency has a use case in everyday life like today's fiat currencies, it will be in a very good position to possibly play an important role in the future. ![]() the number of places that accept them as a means of payment. Such an event is called fork and can have a big impact on the price if there is no consensus between the miners and other participants in the network.īut which factors are still needed for cryptocurrencies to become truly adopted by the masses? One is the applicability of cryptocurrencies in real-world situations, i.e. Both can still be traded and everyone who owned ether at that point received a version of the new one and the classic one. Ethereum was then split into two versions: Ethereum (the one with the new code) and Ethereum Classic (the original code). #CRYPTO CURRENCY COMPARE COIN CODE#Some in the Ethereum community agreed that it would fix the problem, but others didn’t want to change the code as a matter of principle and were afraid it would affect the credibility of ether. To fix this issue, a change in the ether blockchain was discussed. For example, an ethereum-based smart contract for a democratic digital investment fund, the so-called DAO, had a bug that was ultimately exploited by a hacker who stole more than $30M worth of ether. The digital nature of cryptocurrencies implies that there could be bugs in the coding. Thanks to the use of public ledgers, there is no need for a third party to ensure additional trustworthiness or transparency.Īnother important part of the technology is its safety. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |