This week, bitcoin enthusiasts and investors celebrated Bitcoin Pizza Day, the seven-year
anniversary of the day programmer Laszlo Hanyecz spent 10,000 bitcoin on two Papa John’s Int'l, Inc. (NASDAQ:
PZZA) pizzas. Today, the bitcoin spent on those pizzas would
be worth $22 million.
The price of bitcoin has skyrocketed in recent years as investors look for protection in an increasingly uncertain global
economy and speculators attempt to capitalize on the momentum. However, while bitcoin may be the most popular cryptocurrency out
there, it’s certainly not the only game in town.
There's Another Sheriff In Town
In fact, bitcoin isn’t even the top-performing crypocurrency of 2017. While bitcoin has once again doubled in value in 2017, the
value of rival currency ether is up 2,000 percent.
On the surface, ether and bitcoin share a number of similarities. Both cryptocurrencies utilize blockchain technology, the
decentralized public record of all transactions that is the core of the two currencies’ security features.
However, digging deeper into the two currencies reveals they are completely different in both design and utilization.
Ethereum, A Different Cryptocurrency
Bitcoin has primarily served as a currency for consumer payment transactions. The Ethereum ether blockchain was designed to
include many more features that would appeal to the corporate world.
The primary feature of Ethereum that has drawn the interest of corporations is its support of smart contracts. Smart contracts
are computer algorithms that automatically execute the terms of a contract as soon as the contract’s conditions are met. For
example, Barclays PLC (ADR) (NYSE: BCS) has
used this type of technology for derivatives trading.
Related Link: SEC To Review Decision Denying
Bitcoin Market Listing
While bitcoin’s grassroots support continues to swell, a group of corporate powerhouses, including JPMorgan Chase &
Co. (NYSE: JPM), Microsoft
Corporation (NASDAQ: MSFT) and Intel
Corporation (NASDAQ: INTC), have formed the
Enterprise Ethereum Alliance (EEA), a network to connect large companies to work on projects involving the Ethereum blockchain.
Bitcoin’s current market cap of nearly $40
billion is more than double that of ether, but investors see the power of the corporate involvement with Ethereum and the appeal of
the smart contract capabilities.
For investors who want to make a big bet on Ethereum, investment options are limited at this point. The EtherIndex Ether
Trust filed for NYSE listing in July 2016, but has yet to gain SEC approval. The SEC recently said it was planning to
review a previously
rejected bitcoin ETF created by Cameron and Tyler Winklevoss.
For now, investors can set up an account on Coinbase to trade bitcoin and ether directly.
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