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Why Ethereum Might Have More Value Than Bitcoin (In The Long Run)

Ethereum 2.0 Deposit Contract Surpasses $25 Billion Worth of ETH | Finance  Magnates

Nobody can predict the future. As someone who often talks about the future and future technology, I like to belabor that. It’s an important disclaimer because if the future were that easy to predict, then there would be no need for lotteries, fantsy sports, or the stock market.

It’s like my old political science professor once told me in college. Nobody knows anything. He said that in the context of a lesson about politics, but I think it also applies to many other fields. Technology, economics, and finance are definitely among them.

I’m certainly no expert in any of those fields. I like writing and telling sexy stories about technology. I’m not the least bit qualified to make informed predictions about it or any related subjects. I’m not dumb, but my expertise is limited to comics, sexy short stories, and football stats.

Having gotten that out of the way, I’d like to give a brief layman’s opinion about cryptocurrencies. I know that’s a chaotic subject, at the moment. The recent rise of multiple cryptocurrencies has made headlines, albeit for absurd reasons at times. However, I think it’s safe to say that this is not another passing internet fad in the mold of planking.

This technology has real value.

This technology is changing the world.

This technology will likely continue to evolve and improve with time.

I say this as someone who has followed the news surrounding cryptocurrencies for years. I also say that as someone who recently purchased his first stash of Bitcoins. As of this moment, I only have a few hundred bucks in my Bitcoin wallet. I’ve also seen the value fluctuate significantly. I’ve even had a chance to spend them, which was surprisingly smooth.

After this experience, I wouldn’t call myself a full-fledged Bitcoin enthusiast. I’m not planning to invest all my money into Bitcoins anytime soon. However, I genuinely believe this technology has great value. I also believe it’ll become an integral part of our future, with respect to finance and the economy.

At the same time, I can’t help but note its limits. I’ve even highlighted a few of them before. Bitcoin has many benefits, but I think its value is somewhat skewed because it just happens to be the biggest in terms of market cap, as well as the most well-known cryptocurrency.

When most people think cryptocurrencies, the first thing they think of is Bitcoin. That gives it a huge benefit over other cryptocurrencies, of which there are many. That benefit is likely to fuel its value for years to come.

However, having used it and followed the growth of cryptocurrencies more closely in recent years, I do not believe it’s the most valuable cryptocurrency on the market. I also don’t think that Bitcoin, in its current form, will succeed beyond a certain point.

Many people compare Bitcoin to digital gold and I think that’s a fairly apt comparison. Bitcoin, like real gold, is mostly a store of value. That’s what it was designed to be and, for the most part, it fulfills that purpose well. A bar of gold and a stash of Bitcoins will function in primarily the same way.

In terms of value and utility, though, that’s where I think Bitcoin falls short. Even gold has more uses beyond being a store of value. I think if cryptocurrencies are to achieve more than just functioning as digital money, they need to do more.

For that reason, I believe Ethereum, the second-most popular cryptocurrency in terms of market value, may have more value in the long run. It’s not a meme currency like Dogecoin. The technology behind Ethereum actually makes use of the features that have made Bitcoin so valuable.

For those not familiar with Ethereum, it’s a cryptocurrency that’s similar to Bitcoin in many ways. It also uses blockchain technology to create a digital store of value. It has been operating since 2015 and has grown considerably in recent years. What sets it apart, though, is its ability to be programmed.

Whereas Bitcoin is mostly raw math and data, Ethereum is more like an operating system or a programming language. With it, users can create smart contracts, which are essentially digital contracts that are self-enforcing. That means no middleman or lawyers are needed to enforce a signed agreement.

For anyone who has ever had to deal with lawyers or contracts, it’s hard to overstate the value of such a feature. Since many contracts already involve money, Ethereum essentially tightens that connection. In the same way Bitcoin allows people to be their own bank, Ethereum allows them to be their own legal team.

In a world that has only become more connected and digitized, especially after a global pandemic, there’s considerable utility in that. I would argue that utility will make Ethereum more useful than Bitcoin in the long run.

That’s not to say it’ll eventually usurp Bitcoin or all other cryptocurrencies. I think Bitcoin will always benefit from the first, as well as the most well-known. I just think that benefit will only take it so far. Gold is useful, but it’s not nearly as useful as electricity, oil, or even steel. Those assets have tangible, measurable utility. Ethereum offers that on top of being a store of value.

Now, at the moment, smart contracts and other programs run on Ethereum aren’t exactly mainstream. That’s to be expected. This technology is still relatively new. People aren’t quite sure what to do with it yet.

Then again, the same could’ve been said back in the mid-2000s when smartphones came out. It took a while for developers and entrepreneurs to create the kinds of applications that would go onto make billions. It wasn’t just one app or one use. The phones were just a platform. The value came once people started building things atop that foundation.

With Bitcoin, there’s not much of a foundation. Its only app is as a store of value. That’s akin to a flip-phone, which can only make phone calls and store numbers. Granted, even flip phones still have utility, but they’ll never be able to do what a basic smartphone can do.

I don’t pretend to know what sort of applications or programs Ethereum could help create. It’ll probably take more than one for it to truly show its value. I also don’t pretend to know when those sorts of applications or programs will come along. The potential is there. It’s up to people far smarter and more ambitious than most of us to realize it.

I could still be dead wrong about this. Given the malleable nature of cryptocurrencies, it may be the case that Bitcoin eventually gains the same function as Ethereum. For all I know, an entirely new cryptocurrency could emerge that’s better and more valuable than any created to date. That’s entirely possible. Like I said, nobody knows anything about what the future will hold. We just know we’re creating some incredibly valuable tools with cryptocurrencies. We just haven’t figured out how to maximize their value. One day, we will and we’ll all be richer because of it.

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Why Amazon Accepting Bitcoin Would Be A Game Changer (And Why They Might NOT Do It)

Jeff Bezos Directs Amazon to Accept Bitcoin and Other Popular  Cryptocurrencies: Report – Bitcoin News

In all the years I’ve been browsing the internet, I’ve never seen something so divisive or so disruptive as cryptocurrencies. Yes, that includes both video games and internet porn. Crypto’s impact has been that profound. That impact is likely to continue in unexpected ways for years to come.

However, there is still plenty of uncertainty and confusion surrounding cryptocurrencies. I recently had dinner with my parents and my mother asked me to explain it to her. I tried. I’m pretty sure I failed. I tried to simply frame it as digital money, but that didn’t even come close to explaining what cryptocurrency is, how it works, and why it has become such a huge industry.

There are far smarter people than me who can explain what cryptocurrencies are and how they work. This video here does a decent job of explaining it to beginners who aren’t particularly tech savvy.

While I’ve been following the rise, fall, revival, and growth of cryptocurrencies for years, I didn’t actually buy any until very recently. I even wrote about my experience, which ended up being somewhat mundane. It was no different than using an ATM.

That’s somewhat illustrative of where cryptocurrencies are right now. Buying currencies like Bitcoin has never been easier. You can download any number of wallets for free on your phone. If you don’t want to link your bank account to it, then finding an ATM like I did is very easy.

If you have any spare change lying around, you can turn it into Bitcoin. That’s where we’re at now with cryptocurrencies.

The harder part at the moment is actually spending Bitcoins. While you can find numerous online merchants who take Bitcoins, you can’t exactly use them to pay your bills, buy your groceries, or just purchase something on a whim. That’s one of the biggest barriers to cryptocurrencies in general. Using it is more cumbersome than regular cash. That’s why most see Bitcoin as an investment asset rather than a usable currency.

That could change very soon, however. The reason for that change could come from the largest retail entity on this planet, Amazon. If ever there was a company that could completely change the way we see and use cryptocurrencies, it’s this one. It may ultimately make Jeff Bezos even richer than he already is, but let’s table that concern for a moment.

This isn’t just me speculating. There was a recent rumor among the business world that Amazon was looking to start accepting Bitcoins as a payment method. While Amazon ultimately shot down that rumor, they did not say they would never accept Bitcoins.

In fact, I would go so far as to say it’s only a matter of time before Amazon starts accepting cryptocurrencies in some capacity. There’s just too much money to be made from doing so and Amazon, like all big businesses, is always looking to grow. This would be one way of doing that and it’s impossible to overstate the larger impact that would have.

For one, it would send shockwaves through all currency markets, crypto and otherwise, more so than a million tweets by Elon Musk. Suddenly, this asset isn’t just an investment vehicle anymore. It’s a form of money with an actual use.

Amazon is already the biggest retailer in the world. It’s also becoming one of the largest grocery chains. It still has some competition, mostly through companies like Walmart. None of them accept Bitcoin yet, but you can be reasonably certain that as soon as one of them takes that leap, the others will follow.

Beyond just being a novel payment method, Amazon accepting Bitcoins could have a far broader change. One of the main driving forces behind the development of cryptocurrencies is that this is money that has no boarders. It doesn’t matter where you are in this world. You could be in America, China, or the middle of Africa. So long as you have an internet connection, you can access this currency.

For companies like Amazon, that means accessing a customer base that has been traditionally inaccessible. There are over a billion people in this world who have no bank accounts. In some parts of the world, their currency just isn’t usable for companies like Amazon. Converting them to other currencies is already a hassle. Bitcoin could change that.

By accepting Bitcoin, Amazon and other retailers like it have the potential to the entire world in ways that weren’t possible until recently. If they’re going to keep growing, they need those customers and, like it or not, these people need Amazon. Opening more people up to an accessible market can only help get goods to people who need them.

All that being said, I can also understand why Amazon and other large retailers might resist accepting cryptocurrencies. Beyond them just being too loosely regulated, their volatile nature could be a problem for large retailers.

I can attest to that volatility personally. When I bought my first Bitcoins, the price was around $35,000. Then, it shot up to over $60,000 for a while. A few months later, it crashed to the point where it was worth less than my initial investment. It eventually recovered, but that’s a lot of instability for a currency.

That’s something I’m sure Amazon is aware of. By taking Bitcoins as payments, they’re also accepting its wild volatility. All those Bitcoins that paid for all those goods could be worth a thousand dollars one day and worth a fraction of that the next. Even if Bitcoin represents only a small portion of payment, that’s sure to create some anxiety among investors.

Given the current state of the economy and the world, as a whole, I understand why Amazon would hold off on diving into cryptocurrencies. For a large, publicly traded company, anything that makes the stock price or the overall value of its assets less certain might just be too much to handle for now.

It may not happen this year. It may not even happen next year. However, I’m not among those who think all cryptocurrencies are a scam, a scheme, or a fad. These aren’t Pokémon cards or Beanie Babies. This is a valuable tool for the digital world that has the potential to open up exchange with everyone, regardless of where they live.

That tool still needs refinements. Bitcoin certainly has its flaws. That’s beyond dispute. Amazon is aware of those flaws, as well. As they are refined, currencies like Bitcoin will gain more acceptance. Amazon and other big retailers will be part of that process. When that day finally comes, expect a whole new world to emerge. I don’t claim to know what kind of world that’ll be, but I’m excited to see how it unfolds.

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My Early Experiences With Bitcoin And Helpful Tips I’ve Uncovered

Recently, I finally took the plunge and bought some Bitcoin. I even wrote shared the experience. Overall, it wasn’t that groundbreaking. It didn’t involve a radical rethinking of how I used or thought about money. It was not that different from depositing money in a new account from an ATM. The account in this case just happened to be Bitcoin.

Since then, I’ve bought more Bitcoin. To date, I have a couple hundred bucks in my lone Bitcoin wallet. I’m still using BRD, which is one of the simplest wallets you can get. I have looked into getting others that have more features, but many of them seem to be more trouble than they’re worth.

That may change. I am quite interested in what BitPay has to offer with some of their services, but for now, I’m content to stick with BRD.

However, since I bought my Bitcoins, one issue has come up and I suspect it’s still the primary issue that most people face when they first get involved in this. It’s probably the same issue that prevents a lot of people from getting into it to begin with.

How do I spend my Bitcoins once I have them?

It’s the main issue that all these cryptocurrencies face. Getting them and securing them is challenging enough. Actually spending them like real money is still a challenge. While there are some noteworthy merchants that accept Bitcoin, most major retail outlets do not. You cannot use Bitcoin at Amazon or WalMart or even a standard grocery store just yet. Until that changes, its use will be limited.

This is what kept me from buying much of anything with my Bitcoins. Then, I discovered a useful tool that has helped make that easier and I think it’s worth sharing. While it’s true that companies like Amazon and Apple don’t accept Bitcoin directly, you can still use them. You just have to do it indirectly.

One way to do this is to use a site I found called Bitrefill. What it does is simple. You just use your Bitcoins to purchase digital gift cards for popular retail outlets. It works like this.

Step 1: Go to Bitrefill.com and browse the various gift card options, which includes the likes of Amazon and Walmart.

Step 2: Pick a gift card, choose an amount, and enter your Bitcoin account information for the desired amount, which is usually around $50 to $100.

Step 3: Complete the purchase and wait for the gift card code to come in via email. Then, just add the amount to your existing account.

For those who buy most of their stuff on Amazon, this is a quick way to turn your Bitcoins into something spendable. There are a few other workarounds, like Moon and Purse.io, but I’ve found this to be the easiest. There’s even a similar website called CoinsBee that allows you to do the same to your Apple iTunes account.

Basically, if you know how to send or spend gift cards, you can spend Bitcoin. Does it require a few extra steps from traditional cash? Yes, it does, but you can still spend it.

That may still raise the question as to why bother with Bitcoin in the first place. If it’s just adding an extra step between you and the retailers you prefer, then what’s the point? Well, this is where I’d like to share another part of my Bitcoin experience.

After buying my first batch, the price went up. I don’t know why, but it did. Suddenly, the first hundred bucks I put in was worth $125. That was great. It was downright thrilling. Granted, it did go down to around $103, but it was still impactful in a major way.

That’s because Bitcoin, unlike traditional money, fluctuates in value. Many see it as a reason why they don’t buy in. It’s just too volatile. I can understand that, but I also understand the impact of inflation.

If you go to your bank account right now and look at your money, you won’t see it change much in terms of value. However, inflation does ensure that its value goes down. It’s not a conspiracy. It’s just basic economics. Over time, most fiat currency loses value. That has been the trend for nearly a century.

With Bitcoin, it fluctuates. One day, it has more value. The other, it has less. You’ll win on some days, but lose with others. With regular cash, though, you always lose. You don’t lose nearly as much. Most of the time, it happens so slowly that you don’t even notice. Even so, losing is still losing.

The Bitcoins I have now may only be worth a few hundred bucks. By this time next year, they could be worth a lot more. That’s even more money I can convert to Amazon or WalMart gift cards. There’s also a chance the price could crash, as it has before, but given the finite nature of Bitcoin, there’s more incentive for its value to increase rather than decrease.

That doesn’t mean its value will always go up. There’s still a non-zero chance that Bitcoin’s value could stall or outright collapse, as other currencies have in the past. That’s why I’m not converting all my money into Bitcoin anytime soon.

For the time being, though, I’m satisfied and encouraged by my Bitcoin experience. I also encourage others to get into it as well, if only to get a feel for it. Hopefully, the sites I’ve listed here will help you get some use out of your Bitcoins. Money is a powerful force in this world. So long as Bitcoin and other cryptocurrencies keep operating as such, they’ll have a part in our future. Now is as good a time as any to carve your place in that future.

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What Keeps Bitcoin From Being A (Bigger) Part Of Our Future

I consider myself an enthusiast of technology. On many occasions, I’ve wildly speculated about emerging technology and expressed unapologetic excitement about certain trends. In general, I have the utmost respect and support for those who share this passion. I don’t always agree with their outlook or speculation, but I get where they’re coming from.

Then, there are Bitcoin enthusiasts. I’ll just come out and say I have mixed feelings about them.

Don’t get me wrong. I don’t want to diminish what a remarkable technology Bitcoin is. It is a complicated and, at times, confusing technology. Even the Wikipedia page only does so much to explain what it is, where it came from, and why it matters. That’s not surprising. There was plenty of confusion about the internet too when it first emerged.

While I don’t consider myself an enthusiast, Bitcoin has sparked my curiosity. I do sometimes look into major news stories and developments surrounding the technology. The fact that it has lasted over a decade and made some people legitimate millionaires is proof enough that Bitcoin has real, tangible value. Those who keep saying that Bitcoin is just a fad or will crash are becoming increasingly scarce.

I’m convinced that Bitcoin, and other cryptocurrencies like it, are here to stay. They’ve proven that they have value in an increasingly digital landscape. As the internet becomes more prevalent and accessible, their role will only grow. That being said, I’m not yet convinced Bitcoin’s role will go beyond a certain point.

Those who say Bitcoin is the future of money are likely talking in hyperbole.

Those who say Bitcoin and the blockchain are the most revolutionary technologies since email are also likely exaggerating.

I don’t doubt for a second that these people believe in what they’re saying. I just haven’t seen enough to warrant that kind of enthusiasm. The issue isn’t as much about the merits of the technology as it is about how it’s being used. I’m not just referring to its role in the illegal drug trade, either.

At the moment, Bitcoin is fairly accessible. If you have a smartphone and an internet connection, you can download a simple wallet for free. If you do a quick search for a Bitcoin ATM, you can purchase Bitcoins with the same ease you would when purchasing a gift card. It’s what you do after that where the issues arise.

What exactly can you buy with Bitcoin that you can’t buy more easily through other means? That’s not me being facetious. This is where I tend to diverge with Bitcoin enthusiasts. I understand that some major ecommerce sites accept Bitcoin, namely Overstock. I’m also aware that more and more retailers are accepting Bitcoin.

However, the only ones taking advantage of that option are those who go out of their way to use Bitcoin. For most people, especially those who aren’t as tech savvy, there just aren’t enough benefits to warrant the extra effort. On top of that, Bitcoin does have some lingering flaws that are hard to work around. Then again, you can say the same thing about traditional money.

None of that even begins to highlight the growing issues associated with mining Bitcoins.

Now, that could change. It’s not a certainty, but it is a possibility. Like any new tech, the issue isn’t always about whether or not it works. Bitcoin clearly works and it’s been working for nearly a decade. It’s whether or not there’s a “killer app” to entice ordinary people to go through the effort of learning about, acquiring, and using Bitcoin.

The problem is that, thanks to incidents like the Silk Road, the primary use of Bitcoin and cryptocurrencies like it have been for the purchase of drugs or other illicit services. Regardless of how you feel about the politics surrounding illegal drugs and services, that’s the reputation Bitcoin has. It’s just a way for criminals and their cohorts to operate.

That’s not a killer app. It’s also not sustainable.

In order for Bitcoin to play a bigger part in our future, it needs to have a good, meaningful use. It took cell phones decades to find that. Just being able to make phone calls, remember phone numbers, and occasionally host a game of solitaire wasn’t enough. Other apps like music, video chatting, and cameras had to get into the mix before the public and the market embraced them.

That’s what Bitcoin needs. I don’t claim to know what that entails. I think Bitcoin has to get to a point where using it is as simple as using a credit card or debit card. It also needs a particular use or product that will justify the physical and financial investment. That use also can’t be illegal. It’s no secret that the internet owes much of its early growth to the porn industry, but porn isn’t illegal.

Bitcoin, in my opinion, will need something bigger than porn. It might also need to wait until more parts of the world are connected to broadband internet. Maybe it involves voting, enforcing contracts, or the development of new peer-to-peer networks, such as Open Bazaar. I don’t know. I’m not smart enough to figure it out at the moment.

In the meantime, I’ll certainly keep an eye on Bitcoin. I don’t deny it has its uses in the current world. It’s just too limited right now. Whether it has a large or small role in the future that awaits us remains to be seen.

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