The second largest cryptocurrency, Ethereum has been making quite the stir as of late. Behind Bitcoin, Ethereum reached a record high of $3,500+ today, May 6, 2021. At this record-breaking price, Ethereum has officially multiplied it’s value by four!
Here’s what you need to know about the elusive Ethereum and why.
So What Is Ethereum?
Invented in 2015, by Vitalik Buterin, a then 19-year-old Russian-Canadian programmer, Ethereum is unique in that it embraces an open-source software platform which developers can use to create cryptocurrencies as well as other digital applications.
Ethereum actually refers to a specific blockchain technology. This is the decentralized, distributed, electronic ledger. Keeping track of all transactions, ledgers are integral to the foundations of cryptocurrency.
Ether (ETH) is the token derived from the Ethereum blockchain technology. Similarly to Bitcoin, these cryptocurrency tokens are “mined”.
While both Bitcoin and Ethereum run on similar blockchain technology, Ethereum is sometimes referred to as more sophisticated in its abilities to host applications. That being said, there are many people who believe that Ethereum could have an advantage over Bitcoin in the future.
In the past year, Ethereum’s growth and adoption by major institutional investors as well as common retailers. Ethereum is known for being easy to use with relatively fast transaction times.
What’s Up With The Price Of Ethereum?
When it comes to life in general, there really are very few things we can be certain of, cryptocurrencies are no different. Ethereum is current value is almost $3,600 and climbing.
Chief executive and founder of the DeVere Group Financial Consultancy made a somewhat shocking suggestion on the future of Ethereum;
“Ether is one of the main beneficiaries in the wider explosion in the cryptocurrency market. The boom over recent months has been fuelled by soaring interest from major institutional investors and growing recognition that borderless digital currencies are the future of money.”
Green went on to add;
“Ether can be expected to significantly dent Bitcoin’s market dominance over the next year and beyond. Compared to its bigger rival, Ethereum is more scalable, offers more uses and solutions, such as smart contracts which are already used across many sectors, and is backed with superior blockchain technology”.
Green’s statement shines light on the positive attributes of Ethereum and the variety of benefits the ETH blockchain has to offer but not everyone is as sure of Ethereum as Green.
For example, AJ Bell’s Laith Khala acknowledges the relative strengths of ETH within the cryptocurrency context, while also advocating extreme caution;
“Ether, or Ethereum, is more flexible than Bitcoin because it is programmable according to use, so it can be used to verify business transactions or contracts as well as make payments. However, the value of that asset is still only what someone else will pay for it, and while that might be quite a lot right now, once crypto fever has died down, it may not be worth the code it’s written in.”
Hmmm.🤔 That’s one way to look at it.
The Real Deal
Ethereum is still on a steady climb, breaking new records, at over $3,600. This exciting reality could be much in part to rising interest in NFTs, or non-fungible tokens.
You May Be Wondering What’s That Got To Do With Ethereum?
As it turns out, these digital artworks are a whole vibe right now and here’s why…
1)Non-Fungible Tokens, AKA, NFTs, provide scarcity, unique identities, security when trading, and more, thanks to blockchain technology.
2)People like to collect things, with NFTs and the security of blockchain technology, there is an unbreakable, secure, verification to back each collectible.
Here’s Where Ethereum Comes In…
Ethereum coins are used to purchase these forever, digital works of art. Thus, why there has been a significant increase in the sale and price of ETH, relative to the exponential rise in NFT art!
Want To Get In While It’s HOT?🔥