If you're not following crypto currencies let me give you a primer real fast.
There's been a big battle in the bitcoin developer community about increasing the block size. An increase in block size will allow more transactions to occur simultaneously but will require more network computing power. Bitcoin miners are the people maintaining the network and they do it for a bitcoin reward from the system. X amount of coin for X amount of work. This July there is a reduction in amount awarded by half. Since there isn't a single entity controlling Bitcoin no one has been able to make a decision about increasing block size.
Enter Ethereum; Ethereum looks to take what bitcoin invented and improved it. Block sizes can grow as needed and they have introduced a huge feature called a smart contract and the DAO. The DAO is a Decentralized Autonomous Organization, see link below.
The big hurdle was to buy Etherum's currency you had to use Bitcoin. So if Ethereum increased in value, Bitcoin would HAVE to decrease and vice versa. Yesterday a company called Coinbase announced that it will open a market that allows USD to be directly converted in to Ethereum, bypassing Bitcoin. It hasn't been implemented, but the bitcoin market is already beginning to fall as people fed up with the lack of development move to a more modern system.
It's thought that Bitcoin will become internet gold, where as Etherum will be like VISA. the thought is as society transitions in to the "Internet of Things" a digital currency will allow for some really neat change. Like your washing machine could order new detergent for itself when it's empty. It will just show up in the mail by itself.
People are also super excited about the DAO. It's essentially an investment market that DAO Token holders can invest in start ups. All funding goes through the DAO and the smart contracts will send out dividends to all investors without taking a profit. I'm not completely sure how it will work because it's not launched yet. Right now there is a DAO token creation period where you buy investor tokens with Ethereum. In 8 days the Tokens will be tradeable and will probably increase in value similarly to Ethereum.
Currently I have invested $250 USD, in one day it's up to $320 USD. 1 Ethereum is valued at about $14. 1 Bitcoin is at $444. Shit is going to get crazy in the next week once the DAO opens and tokens begin to get traded.
I'm either going to make a nice chunk of change, or lose a couple hundred bucks.
There's been a big battle in the bitcoin developer community about increasing the block size. An increase in block size will allow more transactions to occur simultaneously but will require more network computing power. Bitcoin miners are the people maintaining the network and they do it for a bitcoin reward from the system. X amount of coin for X amount of work. This July there is a reduction in amount awarded by half. Since there isn't a single entity controlling Bitcoin no one has been able to make a decision about increasing block size.
Enter Ethereum; Ethereum looks to take what bitcoin invented and improved it. Block sizes can grow as needed and they have introduced a huge feature called a smart contract and the DAO. The DAO is a Decentralized Autonomous Organization, see link below.
The big hurdle was to buy Etherum's currency you had to use Bitcoin. So if Ethereum increased in value, Bitcoin would HAVE to decrease and vice versa. Yesterday a company called Coinbase announced that it will open a market that allows USD to be directly converted in to Ethereum, bypassing Bitcoin. It hasn't been implemented, but the bitcoin market is already beginning to fall as people fed up with the lack of development move to a more modern system.
It's thought that Bitcoin will become internet gold, where as Etherum will be like VISA. the thought is as society transitions in to the "Internet of Things" a digital currency will allow for some really neat change. Like your washing machine could order new detergent for itself when it's empty. It will just show up in the mail by itself.
People are also super excited about the DAO. It's essentially an investment market that DAO Token holders can invest in start ups. All funding goes through the DAO and the smart contracts will send out dividends to all investors without taking a profit. I'm not completely sure how it will work because it's not launched yet. Right now there is a DAO token creation period where you buy investor tokens with Ethereum. In 8 days the Tokens will be tradeable and will probably increase in value similarly to Ethereum.
Currently I have invested $250 USD, in one day it's up to $320 USD. 1 Ethereum is valued at about $14. 1 Bitcoin is at $444. Shit is going to get crazy in the next week once the DAO opens and tokens begin to get traded.
I'm either going to make a nice chunk of change, or lose a couple hundred bucks.
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