Ever since cryptocurrencies came into existence, they have raised many questions. At first, it was a question of whether or not they were safe and trustworthy. Then it became a question of how well they could compete with more traditional currencies. Now the burning question on everyone’s mind is, “What cryptocurrency should I invest in?”
It’s quite clear that many people are getting rich off of cryptocurrency investments, but many aren’t sure where to turn now that Bitcoin has essentially hit a plateau in terms of ROI. While you might find a variety of answers to that question depending on where you look, one cryptocurrency currently gaining steam is Ethereum. So, is it better to buy Ethereum then? Let’s find out.
Why Is Ethereum Gaining Momentum?
While it’s hard to compare Ethereum with Bitcoin simply because they have different use cases, the potential to make money is there with both. One reason why Ethereum has become a more popular choice as of late is the fact that it’s much more than a currency, it’s a platform. Ether is the name of the actual currency, while Ethereum is the entire platform it operates on.
Because Ethereum is a platform, it’s able to not only deal with currency but run numerous different programs and applications on it. It’s also much easier to buy than almost any other type of cryptocurrency besides Bitcoin.
The same as Bitcoin, Ethereum is a decentralized peer-to-peer network. But unlike Bitcoin, Ethereum offers its users the ability to host crowdfunding campaigns and put together smart contracts. The concept of a smart contract has been around since 1995, but it was just recently brought to life with cryptocurrency technology.
Ethereum allows developers to build their own smart contracts by using a language that has many scripts in it. Because of this, the options for smart contracts within Ethereum are more broad-ranging.
For instance, an Ethereum user can create a smart contract that is designed to manage agreements between two different users. This would apply in cases where a user was buying a conditional service from another, such as insurance. They can also create contracts that give utility to others, like how a software library functions. In addition to this, smart contracts can also store certain information about applications, like membership records, registration info, and domain info.
You can see how these smart contracts could potentially create the basis for an entirely new marketplace online. Not only that, our existing agreements and contracts might end up being transferred onto blockchain technology in the future as well.
These smart contracts are going to need an interweaving web of additional smart contracts, all designed to perform a specific function. With this extreme complexity, it's not too much of a stretch to say that Ethereum could have a room for growth as IT specialists flock to new jobs in the cryptocurrency sphere.
One can only imagine the different companies and services that will be using blockchain-based platforms in the near future. Everything from betting to insurance companies and more will be able to devise new ways of serving their customer.
The security features of Ethereum specifically could benefit it, as consumers look to dip their toes in blockchain. The fact that it is very hard to hack and allows for nearly 100% secure transactions when conducted through the proper channels might just entice a lot of potential cryptocurrency investors to funnel their money into Ethereum-based programs.
**What is the Future of Ethereum? **
When you look at the future of Ethereum as an investor, it’s hard not to get excited. Because of the fact that Ethereum is run using blockchain technology, its future appears very bright. Blockchain tech itself is still in its infantile stages, and there should be some groundbreaking improvements made to it.
When it comes down to putting money into cryptocurrency, the community sees Bitcoin investments as a bet on Bitcoin eventually becoming a world currency, while the Ethereum investment, however, is a bet on Blockchain technology’s power. All blockchains are not created equal, either.
Ethereum developers are currently using codes that other blockchain-based technology lacks. Ethereum can essentially create additional cryptocurrencies on top of its blockchain technology. Many ICOs are actually launched within Ethereum, meaning that their tokens can circulate on the platform itself.
As governments push back against cryptocurrencies as an alternative currency, it would appear that Ethereum has a much easier path to success. Trying to prevent blockchain technology would be like trying to prevent the internet from spreading, it’s just not possible. Bitcoin is still currently the largest cryptocurrency running, and it may stay that way. However, with Ethereum’s many benefits and capabilities, one can’t help but wonder if now might be a smart time to invest in it.
In Conclusion
From what the experts on cryptocurrency can gather, Ethereum is on the verge of big things. We are on the precipice of a world run and powered by blockchain technology, and this appears to be the main reason that investors are going all in on Ethereum right now.
It’s already the world’s 2nd leading cryptocurrency, and with its other potential applications, the ROI on the Ethereum investment could be life-changing… unless another cryptocurrency will implement far-reaching changes to its blockchain and thus fall into Ethereum’s position.