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[–] InfoTeddy 0 points 1 points (+1|-0) ago 

Any sources and/or arguments to back this up?

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[–] glugglug 1 points 0 points (+1|-1) ago 

As far as why it's hyper-inflative: Bitcoin is designed such that there are a finite number of bitcoins possible to mine, and as more are found the remaining ones become more computationally expensive to find. After that point if it becomes more popular, existing bitcoins need to be subdivided to make smaller transactions rather than decreasing the value of each country.

Ethereum, on the other hand, has an unlimited number of minable ethers, which don't get more computationally expensive as more are found. Since computing power follows Moore's law (doubling every 18 months), that means that even without more people actively trying to find new ethers, or hardware coming out optimized specifically to mine them, it will have a ~60% inflation rate. I know people think Moore's law is dead... They are wrong. Between AMD becoming competitive again and making Intel react, and the promise of memristive memory from HP and Samsung (which the specs of Intel's new 3D Xpoint suggest it might be using), it is back with a vengeance. In fact, if memristors live up to the HP announcements from 2012, we will be greatly exceeding that doubling every 18 months for the next decade or two.

As far as Ethereum being backed by banks: https://www.google.com/amp/amp.timeinc.net/fortune/2017/02/28/ethereum-jpmorgan-microsoft-alliance/%3Fsource%3Ddam

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[–] draegspir 0 points 0 points (+0|-0) ago 

Ethereum will have a finite cap once they switch from Proof-of-Work (the way Bitcoins are mined) to Proof-of-Stake, capping the number of coins to around 100 million. That is roughly x5 Bitcoin's total cap, but that will be a moot point since it will also end up as a deflationary asset.

Also, Ethereum is not only backed by banks, they are backed by many technology institutions as well such as Intel and Microsoft as seen on their main page. Many businesses running large in-house networks are seeing the upside of a blockchain-based network, and Ethereum seems to be the best model thus far. That's why even institutions such as banks are looking heavily into the technology because it saves them money.

Bitcoin is awesome and paved the road to blockchain technology, but I would also recommend you pay attention to Ethereum, because that may be the platform where the next truly decentralized Voat exists!