Why is Ethereum not as valuable as Bitcoin (Why does Ethereum mine less)?

Why is Ethereum not as valuable as Bitcoin? Why is Ethereum not as valuable as Bitcoin?

1. What is a token, and is it valuable?

2. How was Bitcoin designed?

1. The issuer of encrypted assets needs to provide certain tokens to its holders as rewards. This allows token holders to earn profits. However, for those who want to invest with fiat currency, it does not necessarily mean that you will lose trust in it, but it may cause them to lose some or all of their wealth. 2

2. Create a new form of economy (such as currency) in the blockchain system and combine it with all other ownership. This economic model requires investors to purchase these new currencies in exchange for more funds; in addition, they must meet capital requirements to operate.

3. What is the relationship between Bitcoin and digital gold?

When a country has its own sovereign credit, people use their currency as collateral for payments. With the government adopting Bitcoin, we have been able to achieve the digitalization of fiat currencies through stablecoins supported by central banks.

4. Where is the value of Bitcoin? Why is Ethereum not as valuable as Bitcoin?

Why is Ethereum not as valuable as Bitcoin?

1) Due to the process of ETH2.0 running, many transaction fees have exceeded $1, so the BTC price has also fluctuated, because most exchanges are closing transactions. Although many people choose not to enter the market now, the price of ETH is still much higher than that of BTC. But if there is a shortage of ETH supply after the upgrade of ETH2.0 and miners cannot mine more ETH, then ETH is likely to depreciate to zero.

2)

The reason why Ethereum is so important is that its development speed far exceeds that of Bitcoin, and it continues to improve. According to DappRadar’s data, the number of active addresses on Ethereum reached a record high in 2017. Since the bull market in 2017, the total number of ETH users has remained relatively stable. By the end of 2020, the total number of Ethereum users reached its peak. Although ETH has risen and the number of new addresses added every day has increased, this trend seems to have not continued-until the beginning of last year, the average daily active users of Ethereum hovered around 200,000. A large number of new users flooded in from the end of 2017, causing some people to switch to ETH and then buy Bitcoin. However, this situation reversed this summer.

3) What is the biggest characteristic of Bitcoin?

First of all, there are a large number of transactions on the Ethereum network currently, but only a few users are willing to pay higher Gas fees. These activities are mainly operated by large financial institutions. In order to attract large traders to participate, some companies use the low-cost and high-performance services provided by the Ethereum network, such as banking accounts and lending protocols, such as loan platforms, etc.

Why is Ethereum mining less?

Editor’s Note: This article comes from the Rainbow Blockchain (ID: cybtc_com), authorized by Odaily Planet Daily for reprinting.

Bitcoin mining became popular in 2017, but so far, the hash rate of Ethereum has been low and not stable enough. As more and more developers enter this field and try to use these new algorithms to mine cryptocurrencies, the demand for miners is increasing. So why is Ethereum mining less? Because they don’t need maintenance to run their network? If the previous mining industry was “difficult”, it is not just a mining industry now, but more need a more decentralized financial system, a new digital identity, and a new trust mechanism, which will greatly promote the development of the entire crypto economy. Although many investors are aware of concepts such as DeFi and NFT, they are actually very valuable.

Since the birth of Bitcoin, the price of Ether has been soaring and continues to rise. And Ether itself is also a very good asset. However, there are not many high-quality products or services in the Ethereum ecosystem, so when we talk about ETH2.0 or ETH2, we first need to mention its technical problems.

First of all, compared with other public chains, it is not particularly good. For example, Bitcoin and Ether are platforms composed of their smart contracts; while Bitcoin is used to pay transaction fees and exchange media for various forms of goods and services, such as stocks, bonds, and even real estate. Therefore, Bitcoin can be understood as a global ledger database system. On the other hand, the network structure of Bitcoin is much more complex than most traditional computer system architectures.

The second point is that its consensus model has vulnerabilities (such as block size limits), which allow users to profit by attacking nodes in the network through malicious software. (Note: “Mining companies” usually charge high fees to Ethereum holders. Due to the highly centralized and non-replaceable nature of Ethereum coins, some small companies may not be able to meet the demand and cannot solve the problem well)

The third point is that applications on Ethereum are often difficult to influence, especially those applications that are not as vulnerable to hacking as many people imagine (the so-called “double spending”). In fact, the “two-step” pattern makes it difficult for many people to participate in the blockchain, which makes ordinary people unable to participate in it.