Bitcoin isn’t the only cryptocurrency decentralising finance…
Launched in 2015, Ethereum is an open-source, blockchain-based, decentralized software platform used for its own cryptocurrency, ether. It enables SmartContracts and Distributed Applications (Dapps) to be built and run without any downtime, fraud, control, or interference from a third party.
Blockchain technology is a topic that deserves its own article entirely but will form the basis of this article on Ethereum. The exciting whirlwind that has been the cryptocurrency storm over the last 10 years has been heavily focused on BTC, but as we have seen by the staggering rise in the number of and value of altcoins, BTC isn’t the only altcoin centralized finance needs to watch out for.
More than three-quarters of all altcoins are built on the Ethereum blockchain, so thank Ethereum next time you invest in a cool new Initial Coin Offering (ICO). Other than the obvious utility of ETH being the base platform that most other altcoins are built on, let’s take a look at 5 other reasons to invest in ETH.
1. It’s growing in popularity
Ethereum has wasted no time in establishing itself as the second-largest digital currency over the past couple of years. It was the brainchild of Vitalik Buterin, one of the co-founders of the platform in 2013, when he was just 19. – Forbes
There are now believed to be millions of people setting up cryptocurrency wallets that hold this currency. The main attraction is the fact that third-party applications can also run on the network.
A rise in the price/ETH is directly proportional to a rise in popularity. According to Finance Magnates, the cryptocurrency is now up more than 120% since the start of 2021.
2. Its value is still on the rise
In a similar way to Bitcoin, the valuation of Ethereum’s currency has risen as people have started to embrace digital currencies. It has been publicly traded since 2016 and the issuance of Ether is limited to 18 million coins per year. At the time this article was written, one Ether was worth more than $2500.00.
Blocktown Capital founder, James Todaro sees Ethereum more than doubling. In a statement, he said that “Ethereum will be worth more than $9,000 in the near future”.
– Trading Education
3. It could be the future of the financial system
Bitcoin’s value is commonly understood as a function of its adoption as a decentralized and deflationary store of value. In contrast, Ether’s value is derived from user demand for smart contract execution. Since anyone can create on the Ethereum network, it has become a vibrant and competitive ecosystem for technological innovation.
Digital assets like Ethereum have the potential to shake up the financial system in the same way Uber and Airbnb have done to their respective industries. Trust in traditional markets is low in the wake of the financial crisis a decade ago and people are increasingly comfortable with the online world after Covid-19.
4. You can trade it on most exchanges
Contract For Difference (CFD) allows traders to speculate on price movements of an underlying asset, without ever actually owning the asset in question. According to Investopedia, CFD trading has gained massive popularity over the past decade, proving to potentially be quite lucrative for those with an aptitude for it, or for those who enter the market with the assistance of a professional trading platform. I have found these services to be extremely helpful, offering education and on-demand support.
Several of the world’s best, and most lucrative cryptocurrency CFD platforms offer Ethereum as a tradable asset, so you have some choice when picking one. Coinbase faces competition from exchanges such as ChainBit, which provides individual account managers, excellent customer service, and an unbelievable education program.
5. It can already be used to buy goods
An increasing number of organizations are now accepting Bitcoin as payment – and the number embracing Ethereum is also expected to increase over the next few years, as people become more comfortable with cryptocurrencies.
Tesla has already started accepting Bitcoin as a form of payment and it will not be long before they start accepting Ethereum too.
It’s growing in popularity, its value is on the rise, it could be the future of the financial system, you can trade it on most exchanges, it can already be used to buy goods.
As the world adopts cryptocurrency at an accelerating rate, we early adopters have the privilege of focusing our investments on coins that can make a global difference and potentially a bucketload of money for those holding and trading it.
If we accept that Ethereum is still to have a massive uptake in users, and the value is determined by the users, we simply owe it to ourselves to own and trade with a little ETH at the absolute least…