Researching could give us false positives, misinformation, or as John Travolta said in “Swordfish” – misdirection. There was a repeated mantra “Litecoin is the silver to bitcoin”. The little brother. Sounds cute. Sounds valid. It supposedly hardforked (*warning this is misleading too) out of bitcoin’s original daemon (*different and not demon), by changing 3 parameters.
- Total coins gets 4X more than bitcoin
- Block transaction processing time gets 4X boost, from 10 minutes to 2.5 minutes.
- Changing mining algorithm to Scrypt.
Everything sounds positive. More coins equals more reach, accessibility. Faster time, means faster confirmation, get things going faster, fees would be lower. No waiting time. Mining algorithm provides better playing field, doesn’t based purely on CPU and GPU power, but a mix plus requirements of RAM.
Ethereum is NOT a currency. The foundation itself said so. WARNING: DO NOT USE – flammable.
Yet today, we can see Ethereum is clearly the silver to Bitcoin. It is traded everywhere, and in most exchanges, this is the trading pair you are able to use directly, after bitcoin. Transactions is comparatively faster than bitcoin. If you offer someone Ethereum, they will take it. ICO are using Ethereum to create their programs. They need to “USE IT”. Not just keep it. Feed it into their virtual machines. The food for the virtual machines. Just as you feed the vending machines, the casino slot machines. You feed them a specific type of manna.
You have dollar notes. Pound notes. Kroners. Rupiah. Notes. Baht notes. Vietnam Dong notes that are waterproof. Then you have coins. The coins are the silver to your notes. They have value. You put them into machines.
So for today – for this year – Ethereum is the silver to bitcoin.
Then we could go philosophical further, asking then how about the Bronze, the Platinum, and Palladium (and perhaps Lithium – Elon Musk)?
The study of humanity, comes categorization. We are inclined to categorise. Race, gender, European, Eastern European, Dornish, Dothraki. Here: There are two asset classes that cryptocurrencies fall into.
Cash / Value / Money — Kind.
Smart Contract / Program / Machine — Kind.
Within each, everyone is clamouring to be silver. DASH, Monero, Zcash, Lite, Bitcoin Dark.
The other side, QTUM, EOS, NEO.
But since the technology flattens everything, think in a horizontal paradigm instead. The SILVER is THE other side. And the other side’s (currently) most sought after piece is called Ethereum.
Therefore the conclusion is: if you are seeking the silver to bitcoin, it is Ethereum. For now. We could still buy other coins. You could hold Swiss Francs. Buy them. You could also still opt to buy an exotic coin. You could buy a 1932 French Francs note. It could have intrinsic antique value that could be auctioned off for a handsome beautiful price someday.