A deep look at ethereum
A deep look at ethereum
Ethereum is a platform in which everyone has the possibility to build a DAPP (a decentralised application) on the ethereum blockchain. This could mean that maybe we are facing something big, maybe this could be the internet 3.0.
Usually when someone talks about ethereum we think in ether, that is to say the ethereum tokens. This happens because of its big potential. We are talking about a coin that has been experiencing exponential growth since it was launched in 2014.
A good summary of its potential and its influence are numbers: a current marketcap of 22,680,300,800. This is a lot, believe me: you would need to spend approximately 704 years just to count this number (good luck then).
A quick look at graphics: the growth experienced by ethereum is positively good and worry: like 10 dollars to 250 dollars in less than a year.
It is good because it is a clear proof of its potential and influence, worry because it is a sign of its volatility.
A good investment? In my humble opinion, the best and secure investment in terms of cryptocurrencies.
I would council everyone to invest in it, although I emphasise its volatility and its risks. You should never invest the money you need and you must always be aware of the huge ocean of risks when investing in any cryptocurrency.
Why I support ethereum? Basically because I believe in the technology. I understand that it still has a long way to go, a lot of things to improve like increase the community of ethereum developers. By the way, solidity is a programming language based on JavaScript developed especially for ethereum (it runs in the ethereum virtual machine, EVM for short), and it is used to create smart contracts and decentralised applications. It has a lot to improve in terms of errors, bugs, information, documentation and community. But every programming language needs a start, and I see a very prominent future for solidity.
Another key point to remark about the future of ethereum is its team. There are hundreds of platforms like ethereum, but despite the competitive scenery we have very competent, talented and intelligent people working in the platform. Look at its leader, for instance, the founder of Ethereum, Vitalik Buterin, a real genius. This kind of people are on the head of ethereum, and this fact comforts me and reveals a big future of thrive, flourish and development to the ethereum platform.
In terms of investment, everything indicates that it could achieve 1000 dollars per token until the end of this year.
We see also a further valorisation due to the imminent change from POW (proof of work) to POS (proof of stake). This will provoke limitations for the inclusion of more tokens in the market and will difficult a 51% attack. It will destroy the mining industry.
Nowadays, it is estimated that at least 5 thousand tokes enter in the market everyday, with the POS this will change causing an almost inevitable raise on prices.
If this is correct, probably we will expect a down on prices that will be recovered, in view that when prices raise rapidly some holders tend to sell it.
When investing in cryptocurrencies, such as ethereum, one needs to understand that it will exist up and downs and sometimes the time is the best alternative.
And this is all for today. I hope you have enjoyed this post!
