{"id":5409,"date":"2017-06-30T17:49:58","date_gmt":"2017-07-01T00:49:58","guid":{"rendered":"http:\/\/occupysf.net\/?p=5409"},"modified":"2017-06-30T17:49:58","modified_gmt":"2017-07-01T00:49:58","slug":"move-bitcoin-ether-digital-currency-moment-nathaniel-popper","status":"publish","type":"post","link":"https:\/\/occupysf.net\/index.php\/2017\/06\/30\/move-bitcoin-ether-digital-currency-moment-nathaniel-popper\/","title":{"rendered":"“Move Over, Bitcoin. Ether Is the Digital Currency of the Moment.” by NATHANIEL POPPER"},"content":{"rendered":"
\n
\n
\n
<\/div>\n
<\/div>\n<\/figure>\n

June 19, 2017 (nytimes.com)<\/p>\n

The price of Bitcoin has hit record highs in recent months, more than doubling in price since the start of the year. Despite these gains, Bitcoin is on the verge of losing its position as the dominant virtual currency.<\/p>\n

The value of Ether, the digital money that lives on an upstart network known as Ethereum, has risen an eye-popping 4,500 percent since the beginning of the year.<\/p>\n

With the recent price increases, the outstanding units of the Ether currency were worth around $34 billion as of Monday \u2014 or 82 percent as much as all the Bitcoin in existence. At the beginning of the year, Ether was only about 5 percent as valuable as Bitcoin.<\/p>\n

The sudden rise of Ethereum highlights how volatile the bewildering world of virtual currency remains, where lines of computer code can be spun into billions of dollars in a matter of months.<\/p>\n<\/div>\n<\/div>\n

\n
\n

Bitcoin, the breakout digital currency, is also hitting new highs \u2014 one Bitcoin was worth $2,600 on Monday. But the Bitcoin community has struggled with technical issues and bitter internal divisions<\/a> among its biggest supporters. It has also been tainted by its association with online drug sales<\/a> and hackers demanding ransom<\/a>.<\/p>\n

Against this backdrop, Ether has been gaining steam. The two-year old system has picked up backing from both tech geeks and big corporate names like JPMorgan Chase and Microsoft, which are excited about Ethereum\u2019s goal of providing not only a digital currency but also a new type of global computing network, which generally requires Ether to use.<\/p>\n

In a recent survey<\/a> of 1,100 virtual currency users, 94 percent were positive about the state of Ethereum, while only 49 percent were positive about Bitcoin, the industry publication CoinDesk said this month.<\/p>\n

If recent trends continue, the value of Ethereum\u2019s virtual currency could race past Bitcoin\u2019s in the coming weeks. Virtual currency fanatics are monitoring the value of each and waiting for the two currencies to switch place, a moment that has been called \u201cthe flippening.\u201d<\/p>\n

\u201cThe momentum has shifted to Ethereum \u2014 there is no doubt about that,\u201d said William Mougayar, the founder of Virtual Capital Ventures, which invests in a variety of virtual currencies and start-ups. \u201cThere is almost nothing you can do with Bitcoin that you can\u2019t do with Ethereum.\u201d<\/p>\n

Photo<\/span><\/p>\n<\/div>\n<\/div>\n

\n
\n
\n

\"\"<\/p>\n

Racks of machines at a server farm mining Bitcoins and Ether in Guizhou, China, last June.<\/span>Credit<\/span>Gilles Sabri\u00e9 for The New York Time<\/span><\/div>\n<\/div>\n<\/figure>\n<\/div>\n
\n
\n

\n

Even though most of the people buying Ether and Bitcoin are individual investors, the gains that both have experienced have taken what was until very recently a quirky fringe experiment into the realm of big money. The combined value of all Ether and Bitcoin is now worth more than the market value of PayPal and is approaching the size of Goldman Sachs.<\/p>\n

Investors buying Ether are placing a bet that people will want to use the Ethereum network\u2019s computing capabilities and will need the currency to do so. But that is far from a sure thing. And real-world use of the network is still scant.<\/p>\n

Bitcoin, on the other hand, has made inroads into mainstream commerce, with companies like Overstock.com<\/a> and Expedia accepting Bitcoin for purchases, along with the black-market operators who use the currency.<\/p>\n

The fact that there are fewer real-world uses for Ethereum has many market experts expecting a crash similar to the ones that have followed previous run-ups in the price of Bitcoin and other virtual currencies. Even during recent pullbacks, though, the value of Ether has generally continued to gain on Bitcoin in relative terms.<\/p>\n

Ethereum was launched in the middle of 2015<\/a> by a 21-year-old college dropout, Vitalik Buterin, who was born in Russia and raised in Canada. He now lists his residence<\/a>, jokingly, as Cathay Pacific Airlines because of his travel schedule.<\/p>\n

The Ether he holds has made him a millionaire many times over, but he has generally avoided commenting on the price increase in Ether.<\/p>\n