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A comment on Bitcoin hits 3-year peak, nears record high on U.S. ETF approval. Parent comment

Re:Bitcoin hits 3-year peak, nears record high on U.S. ETF a... by Rmilb on Thursday February 23, 2017 @02:23PM (#13716877)
Ethereum's currency (ether) is not finite and is predicted to not hold value like bitcoin. Ether is needed to power smart contracts not built to hold value.

Bitcoin wants to be digital gold, ether wants to be digital oil that is used to power smart contracts. This is a good way to explain it to the average person.

[ Parent | on HN ]
Re:Bitcoin hits 3-year peak, nears record high on U.S. ETF a... by Fantastic_T on Friday February 24, 2017 @12:16AM (#13721219)
It's not finite but inflation is paid out to ETH holders in proportion to the amount of ETH they stake for validation, so on the balance, ETH holdings experience no dilution. Rather, there is constant (and gradual, at a rate of about 1-2% per year) transference of ETH value from inactive holders, who don't stake their ETH, to active holders, who do.

So I think ETH can be both digital oil (or digital solar, if you want to be PC) and digital gold.

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