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Bitcoin vs ethereum: How are the main cryptos different?

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Bitcoin and ethereum are the two biggest cryptoassets by market cap today, worth a combined total of just over £1.1 trillion. Yet each crypto is valuable in its own different way.
Bitcoin has been designed to be an anti-inflation cryptoasset, with its total possible supply of 21 million bitcoins intended to make its price rise as more people buy and hold the cryptoasset.
Ethereum, on the other hand, is what’s known as a ‘utility token’. This means it’s used to pay for transactions on its blockchain, which runs a growing number of applications and platforms.
It is because of the various functions of different cryptos that it is in fact inaccurate to refer to them all under the blanket term ‘cryptocurrencies’. Out of all cryptoassets out there, only some are currencies.
Because of this contrast in use cases, bitcoin and ethereum aren’t really rivals. Investors may therefore want to consider allocating some of the crypto part of their portfolios to both, since they have risen and could continue to rise in price together.
Bitcoin and ethereum are the two main cryptoassets with the largest market caps
Bitcoin is the world’s first ever cryptoasset. Outlined by the pseudonymous Satoshi Nakamoto in a 2008 whitepaper, it was launched in January 2009.
What makes bitcoin unique compared to earlier attempts at electronic money is that it uses a blockchain to record its transactions. This is a type of shared database that prevents users from changing or removing its data once this data has been entered.
Having a feature like this helps combat fraud and white collar crime because the authenticity of a transaction can be verified and confirmed.
Bitcoin initially attracted only a small number of investors, who were intrigued by the fact that it operated without the involvement of a central bank or any other centralised organisation.
Another key feature of bitcoin is that it has a maximum possible supply of 21 million bitcoins. Its current supply sits at just under 19 million, with new bitcoins being ‘mined’ with every new block of transactions produced.
Mining refers to the computational process of verifying transactions on bitcoin’s blockchain. This is done by people or (increasingly) companies using powerful computing hardware, with so-called miners rewarded with 6.25 bitcoin for every block they confirm first.
Ethereum was launched in 2015 by a team of developers led by Russian-Canadian programmer Vitalik Buterin, who had been interested in bitcoin for several years.
Ethereum is a cryptoasset much like bitcoin, in that it can be traded. However, unlike bitcoin, it was designed for a different set of uses and has a theoretically unlimited supply.
It also runs on its own blockchain, which Buterin and his co-founders intended as a ‘world computer’ capable of running any kind of computer application.
The key innovation of its blockchain is that it can run smart contracts, which are contracts that self-execute whenever certain conditions are met.
For example, if one person sends another some information using ethereum’s blockchain, a smart contract can be set up so that ethereum is automatically sent as payment to the first person upon receipt of the info.
The bitcoin price in US dollars over the past five years: Since 2016, bitcoin’s price has boomed sunk and then boomed again to hit a record high in November – it was a third on that point at $48,900 on 16 December 2021. Past performance is not an indication of future results.
Investors now hold bitcoin and ethereum for contrasting reasons.
With bitcoin, its limited supply means that growing numbers of investors view it as a hedge against inflation, which is currently rising in the UK, the US and elsewhere.
Record-low interest rates have also made it increasingly attractive to people and institutions with capital to invest.
After being virtually worthless on its launch in 2009, bitcoin’s price gradually rose to $1 in 2011.
It reached as high as $1,242 by November 2013. It then suffered a decline following the collapse of the Mt. Gox crypto-exchange, which most investors at the time used to buy and sell crypto.
After sinking as low as $220 in the summer of 2015, it began a gradual recovery to the $1,200 level by the start of 2017. It then rallied strongly at the end of 2017 to nearly $20,000, becoming known among much of the general public for the first time.
Bitcoin is volatile, however, and after 2017 its price suffered another two years of decline. Then it began rising again towards the end of 2020, reaching a series of all-time highs into 2021.
Its current record high is $69,000, set on November 10, but since then the price has fallen a third to $48,900 on 16 December 2021.
While the cryptoasset’s limited supply may suggest that its price should rise in the long-term, potential investors need to be aware that it has followed a boom-and-bust cycle in the past.
Ethereum’s path to adoption hasn’t been quite as dizzying as bitcoin’s, but is still impressive.
It was worth about $1 upon its launch in 2015, and rose as high as $1,400 in January 2018. It then suffered a two-year decline along with bitcoin, before reaching a new series of record highs in 2020 and 2021.
Its current all-time high is $4,878, also set on November 10, since then it has fallen 17 per cent to just above $4,000 on 16 December 2021.
Ethereum has attracted investors not as an inflation hedge, but because it’s the most widely used blockchain platform capable of running smart contracts.
Thousands of different apps and platforms run on its blockchain, and together these applications hold cryptoassets worth just over £130 billion.
The ethereum price in US dollars over the past five years: Ethereum has followed a similar pattern to bitcoin’s since 2016 and also hit a high in November but it has fallen by less since, with a decline of 17% to just above $4,000 on 16 December 2021. Past performance is not an indication of future results.
The reason why use of Ethereum’s blockchain boosts its value is that the cryptoasset is needed to pay transactions fees.
So, if someone wants to use one of the many applications running on its blockchain, they will need to pay an amount of ethereum. This amount can vary according to user traffic.
Given that Ethereum’s blockchain processes over one million transactions per day, this results in significant demand for the cryptoasset.
The more it grows as a platform, the more demand there will be for ethereum, and the more – all other things being equal – its price could rise.
Ethereum’s developers are planning an important upgrade for next year. This will see it change the mechanism by which it confirms transactions, with the people who do the confirming – called ‘validators’ – having to stake ethereum to verify a new block of transactions.
Staking is holding a certain amount of the cryptoasset to participate in ethereum’s blockchain network and gaining ether as a reward for partaking. Staking will take millions of ethereum out of circulation, making the cryptoasset scarcer and – in theory – more valuable.
The upgrade will also enable ethereum’s blockchain to process as many as 100,000 transactions per second, in contrast to the maximum of 30 per second it can handle now.
This should make it more desirable to developers, with its blockchain currently hosting around 2,889 apps, from video games and social networks to crypto-exchanges and crypto-based lending platforms.
Once it makes this transition, this tally of apps could increase rapidly, and with it so too could ethereum’s price.
Bitcoin and ethereum are big contenders within the crypto ecosystem, and both can have their place within a diversified crypto portfolio.
Bitcoin has become the default crypto asset and is considered by some to be akin to digital gold, while ethereum is viewed by some as a building block for the digital future.
Many crypto investors hold both bitcoin and ethereum and have different investment cases for each. For those interested in investing in crypto it is worth considering them both on their individual merits.

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The September Curse: Why Bitcoin Price May Touch $10,000 – NewsBTC

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September has been a historically bearish month for bitcoin and the rest of the crypto market by extension. Back in 2021, bitcoin’s deviation from expected market trends had sparked hope that it would break the September curse, but alas, it followed it to a T. This is why with the new month already ushered in, there are expectations that the price of BTC will continue to dive and likely reach lower trends as it enters the worst of the bear market.
One of those who have referred to the September curse in their analysis of the price of bitcoin is Scott Redler, the Chief Strategist at T3 Trading Group. Redler posted a bitcoin chart outlining the movement of the digital asset since last year, marking important technical points that had triggered a downtrend in its price.
An important level that has been mapped out by BTC lately is the $17,600. This represents the new local low after the cryptocurrency had set a new record and plunged below its previous cycle peak. Now, $17,600 has become the level for bulls to hold to avoid further decline.
Redler’s chart shows that if the digital asset fails to hold above this level, then the next support lies around $13,500. But even more interesting is the fact that below $13,500, the next possible point is at the dreaded $10,200. 
Bitcoin price chart from TradingView.com
The strategist explains that the month will determine where the price of BTC ends up following this. However, if bulls are able to hold above this level, which ends up serving as a bounce point, then BTC’s next major level lies just above $25,000.
Bitcoin is an asset that has always followed historical trends closely. Even when it had broken out of set trends back in 2021, it still kept close to others. One of those was the infamous “September Curse.” For anyone who doesn’t understand what this is, the term was coined because bitcoin’s price has always recorded a decline during this month.
Last year was no different in this regard despite the fact that the crypto market is deep in the throes of a bull market. Bitcoin had started the month of September 2021 at around $53,000 but had lost more than $10,000 of its value by the time the month drew to an end. This was in spite of remarkable adoption, such as El Salvador officially accepting the cryptocurrency as a digital asset and Cardano finally debuting smart contract capability.
Given this, it is possible that bitcoin will stick to this trend. The digital asset is already showing signs of decline, starting the month above $20,000 and already falling below this important technical level. If BTC went the way it did in 2021, the price will likely drop to around $16,000, which would account for about 20%, in line with previous downtrends. 
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Trader Who Nailed 2022 Bitcoin Collapse Predicts Big Correction for XRP, Updates Outlook on Two Low-Cap Alt… – The Daily Hodl

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The crypto analyst who accurately predicted Bitcoin’s (BTC) crash this year says XRP is likely due for an over 50% decline.
The psuedonymous analyst known in the industry as Capo tells his 541,600 Twitter followers that open-source digital currency XRP remains in a downtrend despite its recent rally.
According to a chart shared by Capo, XRP appears poised to plunge to its high timeframe support at $0.20.
“XRP.”
At time of writing, XRP is changing hands for $0.447, an over 5% decrease on the day. The sixth-largest crypto asset by market cap has risen nearly 40% from its 30-day low of $0.32 but remains more than 86% down from its all-time high of $3.40.
Another altcoin on the trader’s radar is Stellar Lumens (XLM), a crypto asset designed to act as a bridge between two fiat currencies when sending money abroad. According to Capo, XLM gearing up for a quick rally to his target of $0.16 before resuming its downtrend.
“Long on XLM.”
At time of writing, XLM is valued at $0.118, flat on the day.
The analyst is also keeping a close watch on Reserve Rights Token (RSR), cryptocurrency designed to facilitate the stability of the asset-backed stablecoin known as the Reserve Token (RSV). According to Capo, RSR still offers more upside potential despite its over 90% rally in just two weeks.
“Support to resistance flip of the previous key level. Next target is $0.012, but main target remains $0.017. I haven’t taken profits yet, just trailing the stop in profits.” 
At time of writing, RSR is swapping hands for $0.0099, a 4.95% increase on the day.
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Bitcoin slips lower, and South Korea issues arrest warrant for Terra's Do Kwon – CNBC

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Bitcoin slips lower, and South Korea issues arrest warrant for Terra’s Do Kwon  CNBC
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