Many of us saw the massive profits people made with Bitcoin and other cryptocurrencies. Ethereum is another cryptocurrency gaining a lot of attention recently, and its value has increased tremendously since 2015! But what makes Ethereum so unique? Why do people invest in it, and how can YOU get involved?
People tend to Invest in Ethereum for three main reasons.
1. Ethereum provides a great platform to build your applications!
Ethereum is not just another cryptocurrency. It provides a platform on which people can build their own applications without needing to use third-party software's or paying hefty fees!
For example, say you're an artist and you want to sell your music online but don't want it stolen. Well, with Ethereum, that would become a reality because the system would require people to pay for your music with Ether which can be easily tracked.
This is just one example of how Ethereum could change the future! In a recent interview, Co-founder of Ethereum, Vitalik Buterin said: "In five years, I realistically hope that there will either be something that's worth quite a bit more than Ethereum or it will be worth nothing, I think there's a really good chance that the latter happens."
2. Smart contracts!
The second reason people invest in Ethereum is its smart contracts feature. Smart Contracts are an agreement written in code which makes them unbreakable by either party involved. They are executed automatically after pre-determined conditions are met. Ethereum was built to support these smart contracts, and they cannot be censored.
For example, let's say that you hire someone for a job and agree to pay them in Ether once the job is complete. You can set up that contract on the Ethereum network and execute itself after certain conditions have been met. No more late-night calls and arguing over if the job was done or not!
3. You can trade Ether on exchanges!
The third reason why people invest in Ethereum is because they can be bought and sold on cryptocurrency exchanges such as Coinbase, Bitfinex, Poloniex etc... You can buy and sell Ether for other cryptocurrencies such as Bitcoin and U.S. Dollars on these sites. Another advantage of this is that these exchanges allow you to trade from one currency to another, so if the value of Ether increases in relation to your local currency, you can instantly sell it on an exchange and cash out!