Are Elite Buying Ethereum?
Earlier this week, sources including Business Insider revealed that John McAfee-led cyber security company MGT Capital has started to mine Ethereum alongside Bitcoin.
Mainstream media outlets including Business Insider have presented rather irrelevant narratives with headlines such as “Ethereum is Up 4000% This Year, And The World’s Elite Are All Buying In” with the sole announcement from MGT Capital to mine Ethereum using its cryptocurrency mining facility.
A part of the narrative presented by mainstream media outlets regarding the recent rise of Ethereum has been the non-existent competitive nature between Ethereum and Bitcoin. Reports and articles have continuously characterized Ethereum as the rival cryptocurrency and Blockchain network to Bitcoin.
However, the vast majority users, traders, investors and enthusiasts that do have a working knowledge of cryptocurrencies and the Blockchain sector understand that Ethereum and Bitcoin are not competitors or rivals. In fact, Bitcoin is a store of value and was developed to evolve into a global, peer to peer decentralized and transparent digital currency. In contrast, Ethereum was designed to provide an ecosystem for decentralized applications and decentralized autonomous organizations (DAOs).
Ethereum and Bitcoin have philosophies, monetary policies and structures that are entirely different from each other. Ethereum offers a smart contract-based protocol which prioritizes flexibility while Bitcoin offers a secure store of value that can be used as money.