When it comes to cryptocurrencies, the first thing that comes to people’s mind is Bitcoin. That’s because it is far the most popular digital currency out there, and the first one ever invented. With its rising value and it’s great investment potential, Bitcoin threatens to become a better investment than gold. Or at least, more convenient, yet almost equally valuable. Recent surveys showed that the majority of investors would rather put their savings into Bitcoin, than gold. But even though it’s a great investment, it’s important to mention that cryptocurrencies are not all about Bitcoin. Understanding the potential and the opportunities these currencies provide compared to the traditional money, their creators couldn’t help but wonder, what else could they invent and put on the market?
And that’s exactly how Ethereum was made. This is the second biggest crypto amongst the vast majority of others. Today, we have over 4,000 cryptocurrencies in the crypto world! Still, only a few have a significant trading volume. Or a trading volume at all! Although Litecoin, Polkadot and others are important to mention, Ethereum is fighting for the throne with Bitcoin, and it is like that for several reasons.
What is Ethereum?
Some call this cryptocurrency by the name of ‘Bitcoin’s little sister. Something more neutral-sounding would be that it’s the first alternative to the world’s most popular crypto. Their token, Ether, is also decentralized, just like Bitcoin, but it’s based on pretty different principles, technological and ideological. For example, this software’s main focus is to provide people with opportunities to own a bank account, have insurance or enjoy any other financial product, which may sound like a regular thing but it’s not the case for many groups of people. No matter if this has something to do with their ethnicity or nationality, Ethereum has made a promise to make this world into a place of equal possibilities.
The way it functions is somewhat similar to Bitcoin, since by using Ether, you can buy or trade other cryptocurrencies too, or develop or use other apps inside the Ethereum. However, Ethereum is a platform, a network, while Bitcoin is only one of the currencies. The way this platform works is that it acts like a medium between the decentralized system and people interested in decentralizing and securing their funds. It also contains something quite to the famous mining process, in which miners get rewarded for solving complex mathematical problems, using large amounts of power energy and technological resources. In this case, it’s not reserved for only those who have the biggest computing power. On the contrary – in this case it’s reserved for those who have the largest ownership stakes, not the best technological supplies. Still, the same way miners make Bitcoin work, Ethereum gets more safe and secure thanks to its investors.
How much is Ethereum worth?
When compared to the famous Bitcoin, it’s hard not to stop considering Ethereum at any time, since the values of these two are incomparable. Or at least it seems so. While Bitcoin has reached the enormous heights, hitting the fantastic $40,000 in 2023, Ethereum can’t be measured the same way. Simply because it’s not a currency, but a platform instead. They both are using blockchain, which makes them good relatives, but the two are providing their users to transfer value the way they want, without having to deal with traditional institutions and regulations.
Still, the only numbers that people should be interested in, are the percentages of growth that Ethereum’s continuously showing, especially in 2023. Although it has grown nearly 800% in return since the beginning of this year, everyone is still commenting on Bitcoin’s growth and it’s value. Still, it’s been shown that Ethereum may be the platform with the biggest investment potential on the market, while being only the one fifth size of it’s big brother – with almost $500 billion market cap for Bitcoin and about $80 billion for Ethereum.
Is the crypto market as volatile as any other investment? It’s at least as volatile as stocks, for example. However, we now know that it is far away more volatile, with its daily ups and downs, so if you’re about to indulge in this world, make sure to prepare for a rocky journey. Both Bitcoin and Ethereum as a platform have crashed numerous times, only to rise from the ashes as if nothing had happened. Good thing about Ethereum is that it finally seems like it’s getting its momentum. Not only that, according to the predictions, this might be the year when this platform is finally going to sit on the throne!
Outgrowing Bitcoin could easily become this year’s scenario, which makes it into a perfect opportunity for investing. But although there’s not another crypto technology so strong that it may surpass Bitcoin, the real question is, why would it? These two function separately, and are two completely different systems. This means that we can only compare those two as a fun hobby, but the real connection between them doesn’t make them into competitors on the market. Ethereum’s purpose is to allow developers, designers and investors to build their own investment and help their dreams become a reality, by creating a great environment for ideas and their execution.
Thank you, Ethereum
What are the things Ethereum developers did for us? Not only did it bring a whole new perspective into the investors’ minds, but it has improved and changed the way things function. Thanks to this platform, smart, automated contracts have been made, along with numerous apps and finance products that are completely decentralized – doesn’t depend on any banks, institutions, resources or geographical borders.
It’s more than revolutionary – it’s the future! While Bitcoin already came to the point where it’s near its full potential, Ethereum is announcing some major improvements and updates that will lead to a faster, more scalable and finally, more profitable experience. It may happen sooner than we think. Investors all over the world already began diversifying their holdings into other crypto, which includes altcoins. Why wouldn’t you do the same?