Ethereum by https://uphold.com/en/assets/crypto/buy-eth is a blockchain-based, Turing-complete decentralized computing platform that features smart contract functionality. It was developed by VitalikButerin and launched in 2015. Ethereum has been the host of many successful ICOs, and it has fostered an active community in its short time on the market. This blog post will discuss why Ethereum is interesting to investors and developers alike.
Ethereum is a cryptocurrency that offers more than just the ability to transfer value from one person to another. Ethereum also has its programming language, called Solidity, and can be used to build decentralized applications (Dapps). This makes it an interesting choice for developers who want to build social networks or games.
Better for developers
Ether is the token currency of Ethereum’s network. It was first released in 2015 when Ethereum went live with 72 million tokens pre-mined by the development team. The supply of Ether increases at a fixed rate every year until 2020, when it will cut down from 18 million tickets per year to 12 million tokens per year. When comparing this supply schedule against Bitcoin’s infinite supply model, the two are quite different.
- The supply of Ether is finite, which means that the token has a chance to increase in value as demand grows and more people use Ethereum. It also limits the number of tickets on release day for miners or other types of services, but it’s unclear if this will lead to higher prices because there isn’t enough evidence.
In December 2017, Bitcoin had almost 250% growth while Ethereum had just about 20%. This shows that Ethereum’s price could be catching up quickly with its parent currency at an exponential rate. However, when looking strictly at market capitalization (total coins available multiplied by the current price), we see that both cryptocurrencies have grown over time, and they’re still neck-and-neck.
- The Ethereum network is more energy-efficient than Bitcoin because it uses a different consensus model. The miners are compensated for their work with the system’s native token, Ether (ETH). This makes transactions cheaper and speeds up the processing of blocks on the blockchain.
- One of few cryptocurrencies that aren’t based on mining has become increasingly expensive considering all other factors involved in production (electricity required to run computers). ETH could be primed for exponential growth due to its lack of competition from others like Litecoin or Dash.
- Since ether tokens have utility value and simple exchange value, they are seen by some investors simply as units of trade rather than items that can generate an income stream – but this doesn’t mean they’re not a good investment.
This is because the price of ETH, and all other cryptocurrencies for that matter, can only go up as more people use it – which will happen when we see wider adoption in places like Japan or Europe.
- Investors know they have to take risks when investing to reap the rewards. While investors should always be cautious about what they invest their money in, crypto offers an opportunity with low barriers to entry where anyone from any socioeconomic background can get involved and potentially make life-changing gains if they play their cards right.
So far, we haven’t seen many competitors making Ethereum’s model work on such a large scale (though Ripple might come close). Still, considering how long Bitcoin had its monopoly on the market, it will likely be a while before we see Ethereum challenged.
Ethereum is, in many ways, much more than a currency-based investment. In contrast, Bitcoin has an inflexible and linear blockchain that only does one thing; Ethereum’s flexibility allows developers to build almost any program for its users.
This means that projects like Golem aim to create the first decentralized supercomputer where anyone can purchase rendering power from their spare computer or server time, and other initiatives like Augur: a betting market prediction system built off of Ethereum smart contracts. The potential applications are myriad and exciting!
In the end
The flexibility that Ethereum offers its users means there have been projects like Golem, which aims to create the first decentralized supercomputer where anyone can purchase rendering power from their spare computer or server time. The potential applications are myriad and exciting! So, if you’re interested in investing your money into crypto but don’t know how to go about doing so, take a look at Ethereum–it’s not only the second-biggest cryptocurrency by market cap but is also one with endless opportunities for investment and innovation.
Ethereum has the potential to be a valuable cryptocurrency if it can continue its upward trend. However, there are hazards correlated with investing in cryptocurrencies that make them difficult for many people to invest in as an asset because of their volatility and lack of fiat backing. As such, any investment decisions should be made carefully after researching all factors involved, like market cap and price trends.