Meanwhile, back to the podcast with Buterin, he described Ethereum as “a general-purpose blockchain.” It expands on the Bitcoin approach, Buterin said, wherein instead of having rules that are designed around supporting one application, Ethereum aimed to make “something more general-purpose where people can just build their own applications and the rules for whatever applications they built can be executed, implemented on the Ethereum platform.”
The value of ETH depends on the Ethereum network being useful, whereas BTC “derives value from bitcoin the currency,” according to Buterin. “Bitcoin the blockchain is this thing off in the side that, ‘Well, okay. Fine. It has to exist’,” he added.
Comparing the regulatory situation of Ethereum and Bitcoin, Buterin stated that both benefit from being highly international, and having strong communities in the US, Europe, and China, among other places. This includes countries that are not geopolitically on the same page with each other, he said, adding: “There’s a lot of resiliency in that sense.”
The regulators have cracked down on crypto “significantly less than they theoretically could,” Buterin said, as “they theoretically could make something like Coinbase illegal overnight.” But they don’t, he concluded, partly because regulators “see a lot of the positive value that’s coming out of these platforms.”