Sunday, June 16, 2019

Ethereum to Solve the Limited Functionality of Bitcoin, Says Buterin

Vitalik Buterin, the co-founder of Ethereum (ETH), has once again shed light on the purpose of the cryptocurrency. During a recently published interview with Business Insider, Buterin revealed that the creation of Ethereum occurred for the purpose of solving Bitcoin’s (BTC) limited functionality.

Ethereum; A More Versatile Tool

In the course of the interview, the co-founder likened Bitcoin to a plot key calculator, explaining that it does one thing and also is very good at it, while Ethereum, in his opinion, can be compared to a smartphone, which is a versatile tool that can run apps equipped to handle any task, including functioning as a plot key calculator.

As the interview rounded up, Buterin made his solution clearer with the following words:

“So [what I did is] basically taking that same kind of [smartphone] idea of increasing the power of the system by making it more general purpose and applying it to blockchains.”

Buterin’s Investments Span Various Markets

In the reports received in February, Buterin talked about his crypto investments in which he stated that they are mainly focused on the Ethereum network, with his other investments in non-Ethereum businesses amounting to less than 10% of his Ethereum holdings. Buterin has investments in the following non-ETH holdings, Dogecoin (DOGE), Bitcoin Cash (BCH), Zcash (ZEC) and Bitcoin.

In addition, last year December, Buterin made it known that blockchains of the future with sharding based on proof-of-stake will be “thousands of times more efficient,” and that non-financial applications made possible by cheaper transactions will become “a bigger part of the story.”

ETH Falls By 5% Despite Successful Hard Fork

It is usually the practice for other cryptocurrencies to drop in price for a few hours when Bitcoin’s value drops unexpectedly. A market giant like Ethereum is not immune to value loss when Bitcoin’s price falls.

Going by the current price of Ethereum, it’s very clear that things are not right. A 5% drop after a successful hard fork is not the best news at the moment for ETH holders. This drop to $128.39 will likely not be the end as ETH may eventually reach $125.

This current price fluctuation may understandably put fear in the hearts of some people, but it will unlikely cause any real harm. A drop in price is never fun for investors, but in time, the rate is expected to normalize, after all, Ethereum is known to be resilient, and this is just a minor hiccup along the way.

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