Topic: Why do ICOs choose ETH rather than BTC? (Read 136 times)
The availability of the smart contract option answers it all. Bitcoin transactions on the other hand take longer to verify due its scability issues and small block size. Ethereum has the answers and solutions to these problems since it is highly scalable and transactions confirms faster.
ICOs choose ETH because with the ERC20 standard it is both seamless and easy to issue tokens using a smart contract. However, if these ICOs fail, then it does not help ETH, in fact, it harms its reputation and hence price could also drop. Do not be alarmed though, because this happens everywhere. You go to a pizza restaurant for example and you love it, so you start going every week. After months going to the same pizza place, one of these days they give you a bad pizza,because they ran out of tomato sauce and it doesn’t taste nice. It was unlucky, but you probably won’t come back because you think that they do not know how to make pizzas anymore, and that is how the human brain works. Let’s put it this way, we are kind of stupid living things…
The same happens to ICOs, for every 1000 good ICOs, you only need 10 bad for the ecosystem to crash. This is one of the reasons why the ETH price fluctuates so much. So it is nice that nearly all ICOs decide to use the ETH Blockchain, however, it can be quite harmful if all of them do because it only requires a small mischance for the system to crumble.
I also spend about 60% of my assets to keep ETH because it is really a valuable coin using real and very technical background. Together with the professional and supportive community, ETH is growing stronger in the cryptocurrency market. The same happens to ICOs, for every 1000 good ICOs, you only need 10 bad for the ecosystem to crash. This is one of the reasons why the ETH price fluctuates so much. So it is nice that nearly all ICOs decide to use the ETH Blockchain, however, it can be quite harmful if all of them do because it only requires a small mischance for the system to crumble.
ICOs choose ETH because with the ERC20 standard it is both seamless and easy to issue tokens using a smart contract. However, if these ICOs fail, then it does not help ETH, in fact, it harms its reputation and hence price could also drop. Do not be alarmed though, because this happens everywhere. You go to a pizza restaurant for example and you love it, so you start going every week. After months going to the same pizza place, one of these days they give you a bad pizza,because they ran out of tomato sauce and it doesn’t taste nice. It was unlucky, but you probably won’t come back because you think that they do not know how to make pizzas anymore, and that is how the human brain works. Let’s put it this way, we are kind of stupid living things…
The same happens to ICOs, for every 1000 good ICOs, you only need 10 bad for the ecosystem to crash. This is one of the reasons why the ETH price fluctuates so much. So it is nice that nearly all ICOs decide to use the ETH Blockchain, however, it can be quite harmful if all of them do because it only requires a small mischance for the system to crumble.
The same happens to ICOs, for every 1000 good ICOs, you only need 10 bad for the ecosystem to crash. This is one of the reasons why the ETH price fluctuates so much. So it is nice that nearly all ICOs decide to use the ETH Blockchain, however, it can be quite harmful if all of them do because it only requires a small mischance for the system to crumble.
Jump to: