Bitcoin has dominated the world of cryptocurrency since its launch. It is a word people instantly recognise for being linked with cryptocurrency, but it is one that many still know very little about. The interest in cryptocurrency is rising.
With people reaping the rewards of millions, it is understandable that there is growing interest in cryptocurrency and its prospects. In the UK, there are reported to be more than two million people who have invested and owned some form of cryptocurrency.
During Bitcoin’s rise in success and interest, numerous other alternative forms of cryptocurrency also entered the market. In 2016, the market saw the introduction of a new contender to Bitcoin, Ethereum. The new technology is still growing and improving, but it is gaining popularity with each passing day.
When Ethereum was initially created, it was designed to enhance and improve Bitcoin by expanding its capabilities. It offers investors similar abilities as Bitcoin, allowing people to use their chosen cryptocurrency to buy and sell goods or services. Ethereum enables investors to access data services and digital money.
Current industry trends suggest that Ethereum is developing into the cryptocurrency of choice. These are some reasons why Ethereum is looking to become the cryptocurrency of choice by investors.
Major Player In NFT Domain
Another buzzword making headlines within cryptocurrency is NFTs (non-fungible tokens). Having risen in popularity in the space of a year, NFTS are cryptographic assets distinguished by metadata and unique identification codes. One reason behind the rise in NFTs is valuations for these assets, with reports of some being sold for millions. These high-valued price tags are what attract investors looking to make a profit.
Ethereum is linked to NFT because the cryptocurrency supports the development and allows for the creation of new applications on its infrastructure. It makes a potentially longer-term valuable resource. People are buying Ethereum to pay for these transactions and are predominantly using them for NFT sales. Since NFT investors can easily buy Ethereum, they choose to use it to enable them to trade their artwork.
Impressive Speed And Scalability
Bitcoin’s block times can take 10 minutes to complete, whereas Ethereum’s is currently between 10 to 15 seconds. In addition to this, a Bitcoin transaction could take up to 40 minutes to complete. An Ethereum transaction will show in approximately five minutes.
At the end of 2019, it marked a significant moment in Ethereum’s history. It saw the launch of the Ethereum 2.0 project. It is a newer, major version of Ethereum, and it should potentially enable the popular cryptocurrency to secure its position in the future of digital currency.
The new movement has removed the decentralised aspect of the network to help it boost its performance. As a result, Ethereum 2.0 should be able to process a staggering total of valid transactions per second, which will be a giant leap forward.
The speed and scalability of Ethereum and the future it is creating is impressive. It has not gone unnoticed by investors who are gradually beginning to make investments in Ethereum.
Keeping The Free World Informed
In today’s digital world, censorship is a major issue. Many of the big social media platforms reserve the right to modify, hide and delete content. With Ethereum, it can help with keeping the free world informed due to it being decentralised.
Any information that is stored on the Ethereum blockchain cannot be removed or shut down by an agency or government. Instead, it will remain available for as long as Ethereum is operating. The ability to make educated decisions is one of the multiple reasons why investors consider Ethereum a valuable cryptocurrency.
The Future Of Ethereum
The cryptocurrency world is a volatile space. It is difficult to be 100% certain about the outcome of investments, especially with the value changing almost daily. Despite this, investors are constantly intrigued with the cryptocurrency market and the potential opportunities and returns on investments it could offer. Those new to the cryptocurrency world are leaning more towards Ethereum than other options available. It is partially due to Ethereum’s robust and open platforms.
Although Bitcoin will likely have incredible success in the foreseeable future, the same applies to Ethereum. It is one of the leading platforms in the realm of dApps and smart contracts.
Investors’ interest surrounding Ethereum continues to rise with the popularity of this form of cryptocurrency. The future of Ethereum will likely see great successful moments as it continues to battle Bitcoin for being the top cryptocurrency choice.
For investors looking to diversify their portfolio with cryptocurrencies, Ethereum is a great choice to consider. As long as you are aware and comfortable with the risks of investing in cryptocurrency in general, it could be an ideal investment choice for you. One that might see you earn a satisfying return on your investment.
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