Why Cryptocurrencies Are So Popular:
One of the reasons why cryptocurrencies have captured the hearts, minds and wallets of so many
people is the innovative nature of its blockchain technology. It is impressive that the concept of
blockchain and decentralization can be applied not only to finance, but to many other industries, needs
and applications in our society.
Example:
1. Bitcoin (BTC)
• BTC – Crypto Type: Token
• Market Cap (06/25/22): $410,202,265,385
a. Bitcoin is also the first cryptocurrency. Bitcoin was introduced in 2009. Created by an individual or
group using the alias Satoshi Nakamoto. As of June 2022, there are over 19 million Bitcoin tokens in
circulation against his cap of 21 million. With nearly 1,000 new Bitcoins mined every day, Bitcoin is
getting closer and closer to its maximum finite number.
b. Bitcoin was designed to be independent of governments and central banks. Instead, it relies on
blockchain technology, a distributed public ledger that holds a digital record of all Bitcoin transactions.
Bitcoin has a basic system of cryptography and consensus such as Peer-to-Peer (P2P) Verification Well-
established that forms the basis of most cryptocurrencies today.
2. Ethereum (ETH)
• ETH—Crypto Type: Token
• Market Cap (06/25/22): $150,833,549,828
a. Ethereum is a blockchain like network but Ethereum was designed as a programmable blockchain. In
other words, it was not created to support currencies, but to enable users of the network to build,
publish, monetize, and deploy decentralized applications (dApps).
b. The native Ethereum currency, was developed as a means of payment on the Ethereum platform. It
may be helpful to think of ETH as a kind of fuel that powers the Ethereum blockchain. Ethereum has
helped launch many initial coin offerings as many ICOs are built on the Ethereum blockchain. Ethereum
was also the blockchain behind the non-fungible token (NFT) boom.
Similarities between Bitcoin and Ethereum:
Both Bitcoin and Ethereum are digital currencies traded through online exchanges and stored in
different types of cryptocurrency wallets.
Dufferences between Bitcoin and Ethereum:
Bitcoin was created as an alternative to national currencies and therefore aims to be a medium of
exchange and store of value. Ethereum was intended as a platform to enable immutable programmatic
contracts and applications on a global virtual machine.
