In early 2021, the world’s second-largest digital currency has risen roughly more than 360%. Since the available stock is nearing the bottom in March, Ethereum rose by an astonishing 2,200%. On the other hand, Bitcoin is performing well this year as it is only up 100%, so the question now is why Ethereum is up by a considerable margin, even more than what Bitcoin can accomplish.
Bitcoin and Ethereum’s differences have caught the attention of major players in the investment game. Furthermore, the Ethereum network is showing a lot more promise than Bitcoin when it comes to its real-world applications and the ability to store value. Some even speculate that it represents the future of cryptocurrency, with smart contracts and programmable currency, in a way other cryptos, like Bitcoin, simply cannot. In this article, we’ll tackle why this year will be the year of Ethereum.
Ethereum’s Basics
Back in 2015, a programmer named Vitalik Buterin invented a new digital currency following the rise in the popularity of Bitcoin. Buterin realised that Bitcoin is generally created to do one thing. Despite doing it very well, there’s no other thing you can do with it. So right there, Buterin inspired himself to create Ethereum, a new blockchain network associated with the crypto called ether. However, he envisions the latest technology to do more than what Bitcoin was intended for.
While you can trade, buy, and invest in Ethereum just like Bitcoin, it is also a platform that software developers can utilise to create applications. The apps are often designed to make selling, trading, buying, and using cryptocurrency smoother. Similar to how the apps on your phone work, developers’ software will likely be anything from payment platforms to lending apps.
Other Uses of Ethereum
Like other popular cryptocurrencies, Ethereum was initially created with the principle of decentralised finance because the services and products that depend on Ethereum are available to any person who has internet access. Moreover, the blockchain technology of Ethereum gives users smart contracts, which allows creators to create applications that can serve different purposes. The completed applications include financial tools such as decentralised lending platforms, crypto exchanges, and data services that can search various crypto exchanges with the best value. Alternatively, there are other decentralized apps for other things such as buying and selling gaming merchandise, digital artworks, and other developer technologies.
Simplifying Worldwide Payments
Because of how Ethereum’s network allows the creation of new applications and supports its development, it is potentially a more valuable resource in the long run. In the transactions of those applications, ETH is used to pay for it, thus having far more transactions than Bitcoin. Despite cryptocurrency’s recent dip in market value, Ethereum rose at a staggering 1000% for twelve months, compared to Bitcoin’s substantial rise of about 300%. Also, instead of having a central authority that overlooks the applications, networks, and what transactions are being processed, Ethereum-based applications are booming in this field.
Regulations In Cryptocurrency
Ethereum showcases a function-oriented and sustainable approach to crypto, and with its features, it will indeed support the future of DeFi or Decentralised Finance. However, several people remain on the sidelines, only waiting for a government to impose regulations on them. While there are long-term crypto investors expressing discontent with the thought of regulating cryptocurrency, big companies and experienced investors see the forthcoming regulation that could lead to many people adopting the technology due to its stability.
Ethereum Will Be the Hottest New Thing in Digital Currency
Just when you thought that you finally got the general idea about cryptocurrencies, a new form of crypto is gaining the public’s attention at a rapid pace and growing in value. However, many investors in the cryptocurrency world speculate that Ethereum is even more electrifying than Bitcoin, and it is because of how Ethereum can utilise smart contracts on its network. As of now, there are already numerous developers that are running apps in their early stages that are on top of Ethereum.
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