Ethereum is sometimes called “bitcoin 2.0”
Within a few months, ethereum has risen significantly, which makes it a fairly profitable investment. Due to the growing trust to the cryptocurrency that has been observed in the recent months, the cost of the ethereum assets is already $ 50 billion.. Obviously, this is not a bitcoin, which has recently exceeded the price of gold and costs above $ 11,000. However, ethereum seems to be a more efficient and scalable alternative to bitcoin. The fact is that there is only one main growth factor of the cryptocurrencies in this world. This project is Hyperledger, which unites more than 100 of the world’s leading financial institutions and is aimed at creating a global system of currency settlements. The option is for the project to be based on a block chain based on ethereum.
Although ethereum is not the only cryptocurrency that can be an alternative to bitcoin, it seems to be the most important competitor to the latter. There are hundreds of other virtual currencies on the market, each of them has its own unique characteristics and goals. The value of assets in the cryptocurrency is growing very quickly and reached a new record time. At the moment, it is 339.1 billion dollars. Of which 186 billion – bitcoin and 50.2 billion dollars – etherium.
340 billion dollars is a small landmark in the world economy. The European Central Bank prints 360 billion euros for 6 months. But if we look at the entire digital economy and its growth over the past decade, we can clearly state that the value of virtual currencies will grow rapidly to achieve the desired level of support.
Investing in virtual currency
It is difficult to determine which of the cryptocurrencies is safer for investors or less susceptible to fluctuations.
At the moment, the cryptocurrency market has an extremely high level of risk. Of course, in the future we will see an increase in the cost of the etherium, but it’s worth remembering the history of jumps in virtual currencies in recent times. In March 2013, the bitcoins cost increased from 3 to 126 dollars in just one week. According to analysts, later investors witnessed the growth of bitcoin to $ 1,200, and then its decline to $ 200.
Let us recall, however, that Bitcoin is a pioneer in the cryptocurrency market. It is often called the digital replacement of gold and its fluctuations do not affect the popularity of this cryptocurrency. Investments in the etherium are just as risky as in bitcoin. However, investors around the world prefer investing in virtual money. These investors have ceased to trust state financial institutions and consider cryptocurrencies the best choice for investments.
Recently, we have seen legislative changes aimed at integrating the cryptocurrency. Therefore, the etherium must overcome a very long way before it becomes a full competitor to bitcoin.
In comparison bitcoin and etherium, it is necessary to take into account the fact that ethereum is not only a cryptocurrency, but a complete blockchain platform that allows investors to create smart-contracts. This allows you to open projects such as Hyperledger. The ether network is growing rapidly and has great potential. It is worth noting that Storj, one of the largest blockchain start-ups, announced that it will reprogram its data collection system for the etherium.