In the ever-expanding world of digital currency, Ethereum is one of the most promising technologies on the market.
Following its birth in 2015, the digital currency has grown immensely — from $1.50 a share to almost $2,300.
Ethereum’s rapid growth has transformed paupers into millionaires. But despite its skyrocketing value, very few people actually understand what Ethereum is or why it's a good investment.
For those of you who don’t know what Ethereum is, it's important to understand that it's much more than just a digital currency.
Ethereum is an open-source, public blockchain-based computing platform. What this means is Ethereum is often used as a platform to develop groundbreaking applications (called dapps). And the digital currency allowing those applications to operate is called Ether.
If you buy Ethereum, you're actually buying Ether. But in the investing world of digital currency, the terms Ethereum and Ether tend to be used interchangeably.
To many, buying Ethereum means that you're putting money into one of the most powerful blockchain platforms in existence. And the potential for that platform is limitless...
For wary investors, the Ethereum facts detailed in this exchange should help you in better understanding the technology and its potential. More importantly, it should help you in understanding the key differences between Ethereum and Bitcoin — one of the other leading digital currencies on the market...
As a whole, digital currencies have a lot of selling points. Many digital currencies use blockchain technology and finite market caps. These digital currencies are hyperinflation-proof, free from big banks, and open to the individual.
That being said, blockchain technology is one of the key selling points behind digital currencies.
Bitcoin was the first coin to ever operate on a blockchain network. Every transaction that takes place on Bitcoin's blockchain is recorded in a "block." This block is then attached to a long chain of blocks.
Bitcoin’s blockchain is a public ledger, meaning anyone participating in the network can see the transactions and the linked electronic signatures.
Bitcoin’s use of blockchain technology is fairly basic. However, Ethereum’s use of the technology is different, offering greater promise to both developers and currency enthusiasts.
Ethereum is written in Turing-complete code language. For a computer to be Turing-complete, it must be capable of running any algorithm. Because of Turing-complete language, any script can run on Ethereum. Ethereum's blockchain records things far more rapidly than Bitcoin's, processing transactions in as little as 15 seconds to 5 minutes, as opposed to Bitcoin’s 10 minutes. That’s literally half the time.
This makes Ethereum's blockchain the best network to support any business or program. Its ability to solve problems with accuracy and precision is unparalleled.
Ethereum’s speed and ability to act as a platform for dapps has attracted the attention of multiple companies, all of which are vying to hop on the crypto train and potentially profit from Ethereum's blockchain.
This brings us to our next point: Hundreds of major companies have Ethereum’s back, and many of them are trying to incorporate this technology into their businesses as we speak.
One of the strongest pieces of evidence for Ethereum’s long-term prospects is the Enterprise Ethereum Alliance (EEA).
In February 2017, many major companies — including dozens of Fortune 500 companies like Intel, Microsoft, J.P. Morgan, BP, and Thomson Reuters — collaborated to further the Ethereum network technology, with the goal of incorporating it into their businesses. Now in 2021, the EEA is approaching 500 members.
In fact, Mastercard, UBS, and J.P. Morgan raised $65 million into ConsenSys, a development studio on the Ethereum blockchain.
These companies don’t take risks lightly. They have maneuvered their way to the top through brilliant executive decisions and by continually developing business models.
Ethereum reached an all-time high at the beginning of this week. Visa is beginning to set transactions using a network through Ethereum. Since the crypto market cap is at $2 trillion, it wouldn’t be a surprise to see an even greater increase in Ethereum’s share price.
These companies want Ethereum for dozens of reasons. They want the platform for its speed and efficiency, but they also want the Ethereum network for its ability to execute smart contracts.
For those of you who are unfamiliar with smart contracts, it's a contract in the code that dictates action.
For example, in the physical world, you have an agreement with your sibling that if you hit them, they get to hit you back. If you throw a punch, they may retaliate. Now, say this interaction was happening in the code world. A smart contract receives the first transgression (you punching your sibling) and then executes the appropriate reaction (your sibling hitting you back). You need smart contracts to move things along efficiently. And for a blockchain network, they are invaluable.
Ethereum’s creator, 27-year-old developer Vitalik Buterin, developed Ethereum to work with smart contracts.
Before he created Ethereum, Buterin was heavily involved with Bitcoin and blockchain. He realized early on that Bitcoin’s inability to process smart contracts was a major shortcoming of the currency network.
Ethereum’s network possesses something called an Ethereum Virtual Machine (EVM), which processes smart contracts and makes charges and decisions accordingly.
The EVM machine state can change from block to block within the blockchain in accordance with a predetermined set of rules and execute machine code. The EVM determines the way data moves from block to block.
Since its founding, there have been multiple revisions to the EVM. There are several implementations that all Ethereum clients use. There are five standalone implementations in correspondence with different coding.
The EVM rapidly speeds up business processes and increases efficiency across the board.
Every action receives the correct response immediately. It doesn’t matter if it's a payment, transaction, demand, etc.
And in the business world, efficiency is money.
That's why you see so many trendsetters and big-name companies in the EEA. These companies have CEOs who have predicted trends time and time again.
They know that by being an early mover and incorporating this kind of technology, they have positioned their companies for potential monumental growth down the road.
And investors are taking note.
In fact, over the course of 2017, investors flocked to any company associated with the word blockchain. At the time, many of these companies probably weren’t using blockchain technology correctly. For example, a division of Hooters restaurants released a digital currency-based rewards program that operates on blockchain.
However, if you can find the right companies working with blockchain technology, particularly Ethereum and other advanced blockchains, then those companies could be a good bet as blockchain technology continues picking up speed.
Now, 2021 has companies like Coinbase valued around $50–100 billion, causing investors to watch the digital asset space even more closely.
Ethereum could eventually expand and be incorporated into every business. And that brings us to our final point: bank adoption and mainstream use...
Currently, not many technologies are as well-positioned as Ethereum to be adopted by institutions.
And this adoption is starting with the institutions that digital currency could potentially destroy: banks.
Bitcoin is a bit of a villain in the banking community because it poses a threat to our current monetary system.
It’s no surprise that banks like Goldman Sachs and the People’s Bank of China are now interested in incorporating cryptocurrency in their client services.
Banks look kindly on the Ethereum network, which will allow it to thrive in our increasingly digital world.
Bank of America seems to be the most involved with the Ethereum blockchain. In late 2017, the company premiered an Ethereum-based application that helps customers secure their transactions.
But Bank of America didn’t stop there.
In mid-2020, Bank of America made changes to its credit card agreements so that cryptocurrency purchases are to be treated as a “cash equivalent.”
Under the “Types of Transactions” section in terms and conditions, cryptocurrencies are to be treated as “cash advances” on purchases. Cash advances in Bank of America tend to be accompanied by the highest fees with about 5% on all transfers OR a minimum of $10.
Technology adoption happens slowly and often without consumers knowing.
When consumers upgrade their MacBooks or buy new iPhones, they're being guided by Apple to adopt new technologies. Many are expecting a similar thing to happen with the Ethereum blockchain, which will slowly be incorporated by big companies and then trickle down to their clients and customers.
If bigger companies push for mass adoption, why shouldn’t Ethereum follow suit?
Investors should note that Ethereum is the only technology being incorporated by major institutions — even though these corporations have had more than 10 years to collaborate with Bitcoin. That alone speaks to Ethereum's long-term profitability...
Ethereum is a powerful technology with the potential to further businesses and our global currency system.
Currently, the most popular digital currency exchange is Coinbase. Coinbase allows investors to buy Bitcoin, Ethereum, and Litecoin. As the cryptocurrency industry grows, there may be more promising digital currencies added.
When you sign up for Coinbase, you can pay with your bank account or credit card.
If you choose not to use Coinbase, there are many other digital currency exchanges. Just be careful and do your research. The digital currency gold rush has birthed many crooks. Additionally, there are many fake exchanges out there that will take your payment and never provide you with the promised coins.
The best way to check is to look at the website's domain name. If it doesn't have "https" in front of the name, do not invest. The website isn't secure and encrypted and most likely is a scam.
Best of luck!
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The Wealth Daily Research Team