Bitcoin is the most popular digital currency on the planet, but it is time to start paying attention to Ethereum if you are looking for a smart investment.
Even if you know very little about digital currencies, you have probably heard the name bitcoin before. This was the very first cryptocurrency created, and has gone through a rapid increase in value, reaching nearly $20,000 per coin just a couple of years ago.
Things have settled down regarding its value, but this is still considered an unbelievably valuable investment. People who have invested in bitcoin are doing quite well and are expecting to do even better as the interest in the technology increases.
All Hands-on Deck
You know that there is a significant value to something when big name entrepreneurs, investors, and companies are involved. This has been the case with digital currencies, as there have been a number of crypto experts that have arisen over the years. This includes developers from social media giants such as Twitter and Facebook, cyber security experts like Andreas Antonopoulos, and investors from large businesses.
Even some of the largest corporations in the world are getting in on the act of creating their own digital currencies. Facebook has been pushing the idea of creating their own digital coin, Libra, and Walmart is looking at this option as well. A couple of governments have initiated the use of their own digital currency, and countries such as China and Russia are considering a cryptocurrency as their national legal tender.
Ready to Go Through the Roof Again?
It was expected that bitcoin would see another huge jump in 2020, much like it went through in 2017. Some experts even predicted the currency would cross $2 million, an extraordinary number.
The enticement of this currency has been in its limitation. As of May of this year, there were only 21 million bitcoins in existence, which was not only adding significant value, but was also limiting the number of investors. Most cannot afford to pay $4000 or $5000 per coin, basically removing them from the marketplace. This all but ensured that only a limited number of investors could benefit from the skyrocketing price.
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Turning to Other Options
This is where some have opted to look at other forms of digital currency, and Ethereum is one that is becoming an extremely popular choice. If you have not heard of this currency before, it is not surprising.
Ethereum came online in July 2015, and 72 million of these coins are in existence now. As of this writing, the value of this currency is about $395 per coin, far less than what one would pay for bitcoin. That is a significant difference, but is just one of the reasons why more investors are climbing on board to try to purchase this currency.
It starts with the fact that Ethereum is rooted in the use of blockchain technology. This is the most secure technology to help protect transactions and accounts, and has helped to make Ethereum’s open source platform far more secure, protecting this investment.
In addition, Ethereum’s value goes well beyond cryptocurrency trading. Ethereum is not just a decentralized platform but is also a programming language. This means that other applications can be created on Ethereum which makes it easier for companies to create their own applications that can easily integrate the programming language into their system. That is going to allow for smart contracts and currency transfers to occur seamlessly while being fully protected by the blockchain technology.
What Lays Ahead
Another big reason for the excitement surrounding Ethereum is the release of Ethereum 2.0. This version is focused on creating greater energy efficiency, something that has been a significant issue for those mining for other forms of digital coins.
The mining process is a major energy drain. Sometimes dozens, if not hundreds of computers are used to mine for a single coin. Think about the amount of energy needed to run that many computers continuously for days until the right algorithm is generated so that one of these coins can be produced.
This became a serious issue with bitcoin and others. However, the idea for Ethereum 2.0 was created to provide a more energy-efficient system that does not drain resources in this way. It still uses blockchain technology, ensuring for the safety and security of the system, but does so at a greatly reduced price. When this goes online in the coming months, it will be a game changer.
Watch: What is Ethereum 2.0?
Should You Get on Board?
If you are thinking that investing in digital currencies would be a good idea, then Ethereum is a pretty good candidate. This is an innovation that is only going to grow, and the use of dApps, applications created using this programming language, will add greater functionality to the entire system.
Think about the fact that it will not be long before banks and other financial institutions, government agencies, and businesses deploy dApps to conduct business. Patents, mortgages, even voting may all be conducted using Ethereum. This makes the coins only a small piece of what will be available to investors.
Speaking of coins, unlike bitcoin, Ethereum is uncapped. This means that investors are able to find coins at a more reasonable price. While it also means that the value of it will not skyrocket like bitcoin based only on supply, it ensures that people who have a smaller investment budget can purchase a whole coin.
Everything about Ethereum makes this a smart investment. If you are looking to get a digital currency, this would be the one.