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FDIC Vice Chairman Calls for Clear and Transparent Crypto Regulation Following Trump Inauguration

The vice chairman of the Federal Deposit Insurance Corporation says the regulator needs a “new direction” – and that he expects it to begin later this month. In a new speech , Vice Chairman Travis Hill acknowledges that the FDIC sent “pause” letters to over 20 banks, asking them to stop doing business with crypto firms – a revelation unearthed from a Freedom of Information Act (FOIA) request submitted by digital asset exchange Coinbase. According to Coinbase Chief Legal Officer Paul Grewal, the unredacted documents showed a “coordinated effort” to shut down crypto activity in the US. Says Hill, “I continue to think a much better approach would have been – and remains – for the agencies to clearly and transparently describe for the public what activities are legally permissible and how to conduct them in accordance with safety and soundness standards. And if regulatory approvals are needed, those must be acted upon in a timely way, which has not been the case in recent years.” Hill also criticized the regulator’s US banking industry’s agenda of “debanking,” or the deliberate shutting down or freezing of bank accounts of crypto firms. Several high-profile personalities in the crypto space claimed to be victims of the practice. Hill says the right to one’s bank account should be foundational to the modern economy. “Closely related to the agencies’ recent approach to digital assets is the problem of ‘debanking.’ Over the past few years, there have been various accounts of individuals and businesses associated with the crypto industry losing access to bank accounts without explanation. This follows a long history of other types of customers experiencing the problem of debanking, including the politically disfavored business groups targeted by the original ‘Operation Choke Point,’ individuals associated with certain religious or political groups, and many others.” Don`t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Featured Image: Shutterstock/Warm_Tail The post FDIC Vice Chairman Calls for Clear and Transparent Crypto Regulation Following Trump Inauguration appeared first on The Daily Hodl . CoinTurk News

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Bitcoin vs Ethereum: Comparing The Two Giants

Bitcoin (BTC) and Ethereum (ETH) dominate the cryptocurrency market as the largest and second-largest cryptocurrencies by market capitalization, respectively. Both share several similarities, like being digital currencies that can be traded via cryptocurrency exchanges and stored in digital wallets. They are also decentralized and use a distributed ledger called the blockchain. However, they also have several key differences that set them apart. This article will examine Bitcoin and Ethereum in more detail, examining their similarities and differences. What Is Bitcoin? Bitcoin was created in 2009 by the pseudo-anonymous Satoshi Nakamoto. The Bitcoin whitepaper introduced it as a digital currency independent of a centralized authority. Often called digital gold, thanks to its perceived scarcity and durability, it is used as a hedge against inflation, with several major companies adding it to their balance sheets. However, Bitcoin’s primary role is that of a store of value and a medium of exchange, allowing holders to transact with one another without the need for a centralized entity. Bitcoin transactions are recorded on the blockchain, with blocks added every ten minutes. It uses the Proof-of-Work consensus mechanism to broadcast, store, and confirm transactions. Over the years, Bitcoin has garnered considerable attention from investors, regulators, and governments. While primarily recognized as a store of value, it has managed to carve a niche for itself and has intertwined itself with the traditional financial market. What Is Ethereum? Ethereum was created by Vitalik Buterin and has established itself as the largest open-ended decentralized software. Ethereum is more than a digital asset. It is a digital platform that allows users to develop and execute smart contracts without the risk of fraud, downtime, or third-party interference. Users can also stake their assets and purchase, store, and sell NFTs. The idea behind Ethereum was to create an open, decentralized, global computing platform capable of leveraging the blockchains’ security and open nature to allow access to an array of applications. As a result, Ethereum has become the blockchain of choice for developers for creating and deploying smart contracts and decentralized applications (dApps). The Ethereum ecosystem is secured by its native token, ETH. ETH has four primary purposes: It acts as a digital currency and is traded on cryptocurrency exchanges. It acts as an investment asset. Used to purchase goods and services. It is used on the Ethereum network to pay transaction and gas fees. Key Differences Between Bitcoin And Ethereum Bitcoin and Ethereum fulfill different roles within the blockchain ecosystem, and while they may use the same underlying technology and encryption, a deeper look reveals they are significantly different from one another. Bitcoin (BTC) acts as a store of value and a medium of exchange and is known as digital gold. On the other hand, ETH, while also being a medium of exchange and store of value, is primarily used to power the Ethereum ecosystem and the applications running on it. For example, Bitcoin transactions are primarily monetary but can also include notes or messages attached to them. However, Ethereum transactions can also contain executable code for creating smart contracts. Bitcoin Ethereum Creators Satoshi Nakamoto Vitalik Buterin, Charles Hoskinson, Gavin Wood, Mihai Alisie, Anthony Di Lorio, Amir Chetrit, Jeffrey Wilcke Launch January 2009 July 2015 Purpose To become an alternative to traditional fiat currencies Creation of a platform that can run smart contracts and decentralized applications via ETH Consensus Algorithm Proof-of-Work Proof-of-Stake Consensus Mechanism Bitcoin uses the Proof-of-Work consensus protocol. This consensus protocol is performed by miners and requires significant computing effort. In Proof-of-Work, miners must use specialized hardware called ASICs to solve cryptographically complex puzzles. Once a miner solves the problem, the transaction is completed and added to the block. The block is then added to the blockchain, and the miner is rewarded for their efforts. The current block reward for Bitcoin miners is 3.125 BTC . Ethereum initially also used the Proof-of-Work consensus mechanism. However, it moved to Proof-of-Stake in 2022 to become more scalable, secure, and sustainable. Ethereum also introduced danksharding to address issues regarding scalability. One of the biggest reasons Ethereum moved from Proof-of-Work is the immense computing power it required. As the name suggests, Proof-of-Stake replaces computational requirements with staking, replacing miners with validators. These validators stake their crypto holdings for a chance to create new blocks. Proof-of-Stake is significantly less energy-intensive than Proof-of-Work. Security Bitcoin and Ethereum take different approaches to security. Bitcoin’s Proof-of-Work consensus mechanism deters attacks because it requires significant computing resources, making it difficult for hackers to overpower the existing Bitcoin nodes for a 51% attack. Ethereum ensures security by making participants stake their ETH to participate in validating transactions. It also places several mechanisms ensuring that bad actors lose their stake if they act against the network. Transaction Times And Fees Bitcoin transaction fees depend on the data included in the transaction. When block space demand is high, transaction fees could see a spike. While Bitcoin transaction fees have remained relatively stable, they have seen a marginal increase thanks to BTC’s growing popularity. Depending on network demand, transaction time varies from ten minutes to an hour. Transaction fees on Ethereum are known as gas fees and tend to fluctuate more than Bitcoin. The gas price is directly related to the computing power required to complete a transaction. It can increase or decrease depending on network activity. In Closing While Bitcoin and Ethereum are quite different, they are not necessarily competitors. Each plays a distinct role in the crypto ecosystem. Bitcoin has established itself as a store of value and has attracted significant interest from retail and institutional investors. Meanwhile, Ethereum offers significantly more flexibility and use cases, allowing users to interact with various applications. Both present distinct advantages and have their merits and demerits as investment assets. As an investor, it is prudent to hold both assets. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. CoinTurk News