Comparing Bitcoin to gold and Ethereum to “digital oil,” ICBC acknowledges their significant roles in shaping the future of finance and technology.

According to ICBC’s report, market demand has been a key driver of innovation in the digital currency sector.

Market Demand Drives Digital Currency Innovation

This includes the inception of Bitcoin, advancements in Ethereum, and exploration of central bank digital currencies (CBDCs).

ICBC emphasizes Bitcoin’s ability to retain scarcity similar to gold through its mathematical consensus mechanism. Despite challenges, such as waning monetary attributes, Bitcoin’s status as an asset is solidifying, resolving issues related to divisibility, authenticity verification, and portability.

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On the other hand, Ethereum is hailed as providing “technical power for the digital future” and is recognized as “digital oil” capable of fueling various applications across the web3 ecosystem.

More About ICBC’s Report

Ethereum’s incorporation of Turing completeness through its programming language, Solidity, and its virtual machine, EVM. This allows developers to create and manage complex smart contracts and applications, positioning it as a critical platform for DeFi and NFTs.

Source: X

However, Ethereum faces practical challenges, including security vulnerabilities, scalability issues due to high computational demands, and significant energy consumption. Ethereum developers explore solutions like Proof of Stake (POS) and sharding in Ethereum 2.0. This aims to enhance network throughput and sustainability.

Additionally, the report says that ETH Layer 2 solutions such as state channels, side chains, and rollups are being developed to improve scalability.


The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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