What is Ethereum and is it a good idea to invest into it?
People really need to start doing their research, I remember all the doubts and questions regarding Litecoin, “Should I buy Litecoin?”, “Why is the price of Litecoin not moving?”.
Now that the price of Litecoin has skyrocketed, all of sudden everyone wants to buy in and I am now seeing similar questions about Ethereum.
You should not rely on peoples opinions on what to invest in, it is very important that you do your own research, I believe Ethereum still has a long way to go due to the technology, potential applications and partnerships (as well as the founder, the community, the Ethereum foundation and the Ethereum Alliance).
Why is Ethereum great?
It is more than a cryptocurrency, it is a blockchain development platform with hundreds and maybe thousands of potential use cases, the more use cases a currency has the higher the demand it will have.
Ethereum was originally intended as an update to Bitcoin but the proposal was rejected so Vitalik (the Ethereum founder) created Ethereum instead, it has so many more functionalities than Bitcoin now.
Ethereum is so much more faster than Bitcoin and the transaction fees are a lot smaller, I have even started using
I use Ethereum myself to move my funds around since it is cheaper and faster than using Bitcoin, Litecoin is another currency I use sometimes to transfer funds but I prefer Ethereum since I can use it to trade for altcoins which saves me having to trade back to Bitcoin and paying additional trading fees.
Similar to my point above, BTC (Bitcoin) and ETH (Ethereum) are currently the only two trading pairs I know of that you can use for buying altcoins, that means you can only buy most altcoins with Bitcoin or Ethereum, since Ethereum is faster and cheaper I expect to see traders and investors keeping their bankroll in Ethereum instead of Bitcoin, I have already seen traders on twitter converting to ETH only stacks.
Ethereum is more likely to get adopted by businesses due to its smart contract technology which are basically automated contracts with no middlemen that execute automatically once certain conditions have been met, this is going to be huge. I have already seen multi-million dollar companies implementing this technology even though they are currently using it for their own Ethereum based Tokens.
Ethereum is being used to crowdfund money for companies, billionaire Mark Cuban used Ethereum to run an ICO for a coin named Unikoin Gold which will be used on the Unikrn E-sports betting platform that has already been around for years and is one of the worlds leading companies in E-sports gambling.
Since Ethereum is being used to create new tokens it will become the backbone of many new companies and cryptocurrencies which will make Ethereum almost like a gold standard for altcoins and blockchain based companies.
Decentralised Applications (dapps) will be a big thing in the future, not a lot of people know about dapps since it is a relatively new technology but along with smart contracts they will both eliminate middlemen and allow more independence for entrepreneurs and businessmen due to the handling of sensitive tasks and helping to reduce the barriers that many companies face, in other words Ethereum will help to make the world a smaller place.
Always DYOR (do your own research).
I am not trying to show off so don’t get me wrong but I have managed to correctly predict (or take an educated guess if you like) the rise of cryptocurrencies like:
- NEO reaching $50
- Litecoin skyrocketing after a long stagnation
- Bitcoin passing $10,000
- Altcoins rising after the Bitcoin forks
Do you know how I was able to see this? Because I do my research every single day, if you check my post history you will see that I have written many times about Ethereum (and Litecoin, Bitcoin and a few altcoins) and how they can affect our current world.
When you rely on peoples opinions you are basically leaving everything down to pure luck, it doesn’t matter how smart or rich someone is, if they don’t know what they have invested in and you take their advice you will lose money or end up being the victim of a pump and dump (this is more common with smaller altcoins that have no good reason to exist, you wouldn’t have to worry much with high marketcap or blue chip cryptocurrencies).
Bottom line is if you believe in something, go for it, what I don’t understand is people hesitating to jump in when the price isn’t moving (the best time) and then trying to get in once the price starts moving up rapidly (the worst time in my opinion unless you don’t have any of that coin at all).
Ethereum is a very great technology and I believe it will be a household name in the next 10 years just like Apple, Google and Amazon, three companies that no one ever expected to reach the lengths they have reached today.
I hope you found this post helpful, feel free to check out these useful resources below:
Keep your cryptocurrencies safe and secure with a Ledger hardware wallet.
Buy Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash and Dash from BitPanda if you live anywhere in Europe.
Buy Bitcoin and Ethereum from anywhere in the world using CEX or Coinmama.
Get your favourite cryptocurrencies/altcoins from Binance cryptocurrency exchange. (Note: You need BTC or ETH to buy altcoins).
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