Ethereum becoming an official challenger to Bitcoin
Earlier this morning Ether surged to over $350 per coin. Setting yet another all time high.
Since early January Ether has been on an incredible run. Trading for around $8 at the time, it has now run up over 4,000% in just the last 6 months.
During that same time Bitcoin is up just over 200%. A great return in it's own right, but it is pretty clear to see where the major returns are coming from.
To put this run that Ether is currently on into even more perspective, it was trading for around $.90 in January of 2016. I won't even get into the percentage returns on that, but it's huge.
Ever since Bitcoin was created in 2009, it has been Bitcoin and then everyone else.
However, in the last couple months there has emerged the first real legitimate challenger to Bitcoin's throne.
Ethereum is backed by big time Wall Street corporations such as JPMorgan, Microsoft, and Intel.
The entire list can be seen here:
https://entethalliance.org/members/
I did a post a few weeks ago talking about some of the companies backing Ethereum, it can be read here:
https://steemit.com/bitcoin/@jrcornel/bitcoin-tops-usd2500-and-ether-tops-usd210-both-all-time-highs
The dollar trading volume between the two has gotten startling close.
Usually the dollar volume traded each day is dominated by Bitcoin. However, over the last 24 hours, Bitcoin and Ether have both traded roughly $2 billion USD each.
Furthermore, Ether's market cap now sits at $31 billion, which is over half of Bitcoin's current market cap. That might not sound like much, but no coin has really ever gotten close to challenging Bitcoin's market cap leadership position until now.
Bitcoin has fallen below the 50% threshold of the entire market cap of the crypto space for several months now, and even though it has risen over that time, it still hasn't been able to regain that 50% threshold.
The primary reason is because of the incredible surge taking place by the rest of the virtual currency space.
What is Ethereum?
From their website (https://www.ethereum.org/), Ethereum can be defined as:
A decentralized platform that runs smart contracts. Applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third party interference.
These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
Basically, Ethereum hopes that it could one day become the backbone for the entire world with many decentralized applications running on top of it in some shape or form, casting a much broader net than Bitcoin. Scaling issues aside, that is the ultimate vision from Ethereum creator Vitalik Buterin.
Either way, Bitcoin is not going away.
No matter if Ethereum or some other coin eventually overtakes Bitcoin in terms of marketcap, it is not going the way of the dinosaur.
It is already too entrenched to completely disappear. Even if the technology behind it's blockchain is a bit dated.
It seems likely that at some point someone will overtake Bitcoin, and it looks likely that someone might be Ethereum. However, even when that happens I still find it hard to believe that Bitcoin is not the first name mentioned when talking about crypotcurrencies. It's hard to replace it's first mover advantage.
Perhaps with enough people using a Steem powered social media site we can one day talk about Steem surpassing Bitcoin as well in terms of market cap.
That day seems a long ways off, but it sure would be a fun day indeed.
Stay informed my friends!
Sources:
https://themerkle.com/ethereum-value-surges-to-us350/
https://bitcoinmagazine.com/articles/vitalik-buterin-on-his-long-term-goals-for-ethereum-1462381147/
Image Sources:
https://bitcoinmagazine.com/articles/vitalik-buterin-on-his-long-term-goals-for-ethereum-1462381147/
https://coinmarketcap.com/currencies/ethereum/
Follow me: @jrcornel
I wonder how soon the developing nations will start using Ethereum smart contracts to pay for all the development happening through contractors especially from China and other nations.
Hello @hezz
Thank you for your vote on my comment in this post:
https://steemit.com/steemit/@elyaque/daily-steem-report-june-13th-steem-2-25usd-4037-new-accounts#@barbro/re-aaron1-re-elyaque-daily-steem-report-june-13th-steem-2-25usd-4037-new-accounts-20170613t114836880z
As promised I voted for you here.
Have a nice day
Badge by @elyaque
Thank you @barbro. Much appreciated.
This is just a hunch. but they may start using a Ethereum setup to get funding from Investors through JP Morgan and large hedge funds, to start building the infrastructure in their countries. Using the block chain to move provide large sums of money through smart contracts. This will provide security that is superior then traditional contracts at a cheaper cost. I can see that wire transfer fees will be one way of savings.
There's a number of players in this particular space such as Ripple and Stellar. The JP Morgan fork is a hint that they will probably try to compete in the same way I'm guessing.
What is so different about this particular currency?
The Smart Contracts
In Ethereum computations can be embedded into each transaction, essentially allowing miners to process computing determined by the developers writing smart contracts.
It seems the future of Ether is bright. The Ethereum Enterprise Alliance is certainly propelling the Tech forward.
What has set Ethereum apart from other alt-coins is the fact they have never tried to be the next Bitcoin or Bitcoin 2.0. Ethereum takes blockchain technology and applies it to unique use cases that Bitcoin cannot currently compete with. While Bitcoin’s emphasis has always been on securing the network, Ethereum offer significantly greater flexibility. It is my hope as a supporter of both Bitcoin and Ethereum that each will find their niche and effectively optimize to dominate therein. At the currently high fees and extended confirmation times, Bitcoin is no longer feasible for accepting micro payments. Anyone have any thoughts on the proposed BIP 148?
Ehh. I really don't like this comparison.
ETH and BTC are trying to solve two different things. ETH is not a store of value - it was never supposed to be. Bitcoin is.
Completely different. Period.
Does it make it extra hard for Steem to reach bitcoin market cap as there is no maximum supply of Steem?
Not really. It might make the price per coin forever lower, but market cap is determined by how many people want to buy the coin, and how much money they're willing to put in.
If 100 people are willing to pay $1000 for a coin, it's market cap will be $100,000 -- regardless of the supply of the coin.
Look at how DOGE used to be in the top 10. An individual DOGE is worth almost nothing, and the supply is unlimited, but it is way ahead of '42COIN', of which there will only ever be 42.
The trend is clear, as you pointed out. We're smart to invest both in BTC and ETH, but Ethereum is poised to make much greater gains in the near future, and is likely to overtake or at least equal bitcoin as the #1 crypto!
Totally agree. Especially lately you have noticed that if Bitcoin goes up it also drags Ethereum with it but Ethereum itself is also growing on its own and with all its backing probably close the gap soon.
100% Agree. Ethereum has a higher ROI so the investors are going for ethereum and in the end investments are the driving force behind price. It think ethereum can even hit 1000$ by the end of 2017.
Could happen in the next month at this rate.
thanks for the tip!
I was thinking sell ETH already back then :D
My thoughts exactly, I think it will increase at a much faster rate than bitcoin did maybe even catching up in USD value. Im all in on both myself.
Some of my thoughts on all 3 coins in this blog, would love to have a conversation about it here.. I think ETH has a much higher possibility than BTC because of potential help from Russia... https://steemit.com/steemit/@wvm/is-today-the-day-bitcoin-cracks-3k
Serious question, what does ETH offer which ZEC doesn't?
Smart contracts. @rejoys
On the advice of a good steemit friend, I split my my Bitcoin holdings into ETH about 2 weeks ago. Watching them both rise in value has been satisfying. But it's good to not miss out on one of these bullruns for once.
I'm just waiting for the steem bull to come charging through. THAT will be an exciting time for me, as I own about 1000X more Steem than anything else :)
Bitcoin is like Google.. Strong name. the name is well known to people. That has lasting power... Ether is like that 2nd chance for investors that missed out on the Bitcoin ship.. Like me who had a chance to invest when Bitcoin was $5 - $10... I started in on Ether around $9 and have full confidence that it will reach $1k
Agree. The excitement about Ether is being able to participate in ICO’s
Bitcoin maybe more like Netscape, Gateway, and other tech companies that were early giants but disappeared into memory . JP Morgan, Microsoft and others are some of the largest company's in the world and gives Etherum a huge advantage. I see Etherum taken passing over Bitcoin and taking the lead. Bitcoin may turn out to be the next prodigy. Invest in both and in the future some other platform maybe the winner. Time will tell.
@seymourbucks
Yes, it's def going to $1000 beginning of next year(2018). You heard it from me @tradz ;)
Eth isn't the only chance to catch up where ppl missed out on investing in bitcoin in it's early stages. We have so many coins that can make us some serious money by just investing under pennies(sats) and cashing out on just $1.
I don't know about Bitcoin name being like Google, in social media Myspace was greater than Facebook... for some reason I think the comparison of Bitcoin to Myspace fits a bit better. And lucky you on Ether at $9!!! Some of my thoughts on all 3 coins in this blog, would love to have a conversation about it here.. I think ETH has a much higher possibility than BTC because of potential help from Russia... https://steemit.com/steemit/@wvm/is-today-the-day-bitcoin-cracks-3k
I think it will reach even more!
Seriously, WHEN is this meteoric rise going to have a big correction so latecomers like me can get in?? :p
It'll probably have a correction within 24 hours of me investing in it. So I'll let you know when I do, and you can prepare to buy in after :)
I loled. The problem is, if you invest and it tanks, then when I invest it might kill it entirely :p
I don't think you are late. 300% returns on Ethereum are still very realistic.