Analysts and traders are quick to make Ethereum out to be second best by saying the bubble is going to burst any day now. Regardless, Ethereum still attracts much attention from the investors, and the saying that the tallest trees get the most wind has never been more relevant. We take a look at Ethereum’s noble beginnings and explore why it is still a very solid and stable investment.
What is Ethereum?
Ethereum, like Bitcoin, has a public and open-source Blockchain. It is most famous for its innovative and groundbreaking smart contracts. These smart contracts allow other alternative coins, the altcoins, to create real world tools or mechanics which can improve the current ones and are based on certain algorithms. There is a number of Altcoins that are built on the Ethereum Blockchain and utilize its smart contracts. Ethereum’s token is called ‘ether’, which can be traded on exchanges or used to sell and buy goods and services.
Created in 2013 by a recent superstar Vitalik Buterin, Ethereum has certainly made this young man one of the richest in the world of Cryptocurrencies. Buterin has been hailed as a true inventor and is leading the way for many groundbreaking innovations and products.
Ethereum went live in 2015 after a successful crowd sale in 2014. Due to a collapse of Ethereum’s DAO project, the cryptocurrency was forked in 2016, and Ethereum Classic was introduced to the market.
Some refer to Ethereum as a ‘World Computer’, which describes the aim of Ethereum perfectly. Whilst Bitcoin’s aim is to replace payment models such as PayPal and Visa or Mastercard, Ethereum wants to democratize the Internet and relevant services. Ethereum’s system runs on nodes and enables anyone from anywhere to provide top-notch services based on Ethereum’s smart contracts. For example, to make a new and exciting app to track your weight loss progress, to buy groceries, or even to put gas in your car. All of these activities can be done without you even having to lift a finger. Basically, it will give users control over their own systems without any third party involvement.
Price analyst – long term and short term analysis
Did you know that if you had invested €3,000 in January 2017 in Ethereum, you would have had well over €100,000 now? Oh yes! The ETH to EUR price increased from €7.67 in January to €285 in November. As is the case with almost all cryptos, news can have a dramatic effect on the price going up or down. This rise in the Ethereum price is thanks to news that the Enterprise Ethereum Alliance recently added 86 new members. But wait until you hear who they are! They have the likes of DTCC, Merck, Toyota, Samsung, the Illinois Department of Financial and Professional Regulation, to name a few. This adds to the many reasons why Ethereum is such a good investment.
The Ethereum bubble – what is this all about?
Keep in mind that there will always be risk when investing in cryptos, as is the case with all investments. Nothing is guaranteed. With that being said, cryptos are extremely profitable if you play your cards right. There has been talk of Ethereum being a bubble that will burst. The truth is that we may be very far from this actually taking place. The crypto market has an enormous market, cap and one can trade to your heart’s content at this stage. Investing in cryptocurrencies like Ethereum is a good idea, especially when you look at its roadmap. Ethereum aims to create devices and systems with real-world usage and, in doing so, to revolutionize the way people go about their everyday lives. It is not too late to invest in solid cryptos like Ethereum since it corresponds to the three main categories one has to look out for before investing – a good team, real-world use and market cap.
2017, the year of Ethereum?
Investing in Ethereum is definitely one for the long run. 2017 has been an outstanding year for Vitalik Buterin and his team if one looks at how Ethereum performed amidst two Bitcoin hard forks. Whilst some are calling Ethereum a ‘baby’, there is much room for improvement and growth. This is a good thing since more and more cryptos are being introduced to the market on a daily basis with the aim of improving certain aspects of either Bitcoin or Ethereum. In this regard, Ethereum has room to grow and will surely outshine any potential competitor.
Should I invest in Ethereum or Bitcoin?
It is always a good idea to diversify your crypto portfolio. Whilst Bitcoin is the gold standard of the crypto industry, Ethereum is the one that may be doing all the work with its smart contracts. There is a lot of room for Ethereum to grow and, as time goes on and more and more people realize the potential of blockchain and smart contract technology, Ethereum is sure to make its mark. It is currently the second biggest cryptocurrency behind Bitcoin, of course, and is well worth investing in.
Ethereum is one of the top choices when it comes to secure investment. Customers can buy Ether on different exchanges with either fiat currencies like US Dollars or Euro, or a cryptocurrency like Bitcoin. Today, the cryptocurrency market is advanced enough, so you can do a bank transfer or use certain credit cards to buy Ether within minutes. All you have to do is to open an account within an exchange that offers customers safe and secure transactions and gives them outstanding rates for Ether buying.