What is the difference between Ethereum and cryptocurrency? Is Ethereum cryptocurrency a scam?

What is the difference between Ethereum and cryptocurrency? According to Coindesk, the transaction fees for Ethereum are currently as high as $10. On the other hand, cryptocurrencies like Bitcoin, Litecoin, and EOS have significant differences when it comes to digital currency and encryption technology.

In traditional finance, “fiat currency” and “virtual currency” are exchanged using blockchain technology. However, within the Ethereum network, there are two types: one is the fiat currency on Ethereum, and the other is smart contract-created and third-party issued tokens that can be backed using any user-held asset. The second type includes Ethereum coins and blockchain-based digital tokens.

Is Ethereum cryptocurrency a scam?

Editor’s note: This article is from BlockBeats (ID: BlockBeats), authorized to be reproduced by Odaily Star Daily.

In the past few months, the transaction price of Ethereum has risen from $2 to over $20, but now it has dropped to around $30. Some claim this appears to be a “scam.” So, is it just a promotional tactic or a “pyramid scheme”? If someone says Ethereum is a scam, it may actually be a scam because its value is severely underestimated. Its issuers are genuine supporters of Ethereum, and they even promise to introduce their own tokens in the future and interact with them, but in reality, it’s just empty talk. 1. What is Ethereum? Currently, Bitcoin, the largest cryptocurrency in terms of market capitalization, has recently seen a surge, with the most notable being the lock-up amount of $100 million in the ETH 2.0 deposit contract, reaching a historical high. Meanwhile, other altcoins also performed well, such as Tether (USDT) and Binance Coin (BTC). According to data from IntoTheBlock, a blockchain analytics website, the circulating supply on Ethereum is 1 billion tokens, with a total market value of $4.77 trillion. (“Ether” refers to fiat payment obtained by using Ethereum as a cryptocurrency, allowing people to buy and sell various forms or multiple cryptocurrencies.)

However, when people deposit money into Ethereum, they can use these funds to purchase Bitcoin. Although the initial price of Bitcoin experienced a surge between June 2020 and mid-November, it has been falling ever since, with a downward trend until September of this year. Therefore, despite investors buying more Ethereum during the bull and bear transitions, there is still a significant amount of selling in the market, making it difficult for many individual investors to participate. Considering this situation, it is either due to the inability to accept the continuous rise in Ethereum prices in the short term or the long-term holding unless they choose to sell their Ethereum holdings. 2. What is Ethereum Coin? According to @0x_eos, a user in the Ethereum community, Ethereum Coin can be used to purchase various types of tokens, including ERC-20, BEP-2, TRC20-Token, etc. It can also be used to create other applications similar to ERC-721 standard, such as debit card and credit card applications.

Since most Ethereum coins are built on its network and each address has a different cryptographic identity and private key, it is essential to consider the following aspects when using these cryptocurrencies: 1) non-fungibility, 2) scarcity, 3) increased variability and transferability. Additionally, there are ongoing developments in decentralized financial protocols.