The main differences between Bitcoin, Ethereum and Binance Coin

Por Moris Beracha

At this point, there is no doubt that crypto assets, such as Bitcoin, and cryptocurrencies are here to stay. With its ups and downs, the intangible means of payment has been adding greater fame and notoriety as the months progress. Perhaps one of the causes that made possible the boom experienced in these times has to do with the digitization of a large part of the world economy due to the pandemic.

The truth of the case is that, despite the detractors and the alerts that are launched from different areas of the world economy about its low reliability, as well as the risks associated with operations, crypto assets and cryptocurrencies are taking possession every day with greater strength in people’s minds.

Bitcoin is a strong crypto asset. It was created in 2009 by Satoshi Nakamoro (pseudonym) and works under blockchain technology (chain of blocks), which works as an accounting book in which each and every one of the operations that are carried out worldwide through be active.

It differs from cryptocurrencies because it has a finite value: only up to 21 million of them can be created. However, not all of them are in circulation and the new ones are generated from a process called mining, which is carried out through the use of powerful computers that can decipher a kind of complex mathematical problems. Although it is not tangible, the procedure for mining Bitcoin has a high environmental impact. Its value is determined by market forces.

As for the most important cryptocurrencies are Ethereum, Binance Coin, Cardano and Dogecoin and below we explain some of their most important differences.

Ethereum was created in 2013 by Vitalik Buterin, a Russian-Canadian programmer. So far this year, its price has increased 465%. Ether is considered more than a cryptocurrency, as it is used to carry out transactions with non-fungible tokens (NFTs), technology that makes it possible to buy and sell digital art. Over the course of this year, it has been one of the most traded cryptocurrencies.

Binance Coin, according to data from specialized publications, ranks third among the largest. It was created in 2017 in China by Changpeng Zhao. Then the operations were transferred to the island of Malta, to evade the regulations in their country of origin.

Among its peculiarities, the fact that this cryptocurrency can be used to exchange for other virtual currencies and to pay fees within the Binance Exchange platform stands out. It has a limit of 200 million tokens.

Cardano ranks fourth among cryptocurrencies. It was named after Ada Lovelace, a nineteenth-century mathematician known as the first computer programmer.

Unlike other virtual currencies, Cardano uses less energy. According to its creators, this cryptocurrency is 1,600 million times more “energy efficient”, since for mining they use a technology based on a proof of stake (POS) system.

There are cryptocurrencies for all tastes and to satisfy all requirements. However, as I have insisted before, it is important to seek the advice of qualified experts when investing and to read a lot on the subject.

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The main differences between Bitcoin, Ethereum and Binance Coin

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