More than half a decade ago in 2015, Ethereum (ETH) was first introduced to the world.
The brainchild of Vitalik Butarin and Dr. Gavin James Wood, Ethereum is widely regarded as the second-most popular cryptocurrency in the world. At the time of writing, Ethereum has an estimated market cap of $295 billion.
While Bitcoin (BTC) has continually stolen the limelight, Ethereum promises significantly more utility compared to Bitcoin. Unlike it’s more popular cousin, the Ethereum network can be used for far more than just processing transactions from one user to another.
Ethereum as an investment
In recent years, we’ve seen how cryptocurrencies have exploded onto the mainstream. From a fringe currency used by a community of enthusiasts, crypto has now attracted the attention of institutional investors from all over the world.
One of the main reasons why crypto has become such a popular investment is the perceived freedom of the market.
Being entirely decentralized, the issuance and sale of cryptocurrencies such as Bitcoin and Ethereum is totally unregulated. Meaning that governments and other regulatory bodies are unable to intervene in the market.
With the threat of rising geopolitical tension and economic uncertainty, investors have scrambled to hedge against the value of their assets. And to do so, many have chosen to allocate large quantities of sums into the cryptocurrency market.
With demand on the rise, the price of cryptocurrencies have surged remarkably over the past 2 years in response. Ethereum is no exception to the rule with year-to-date returns hitting well above the 200% mark.
Uncertainty on the horizon
Despite the positive market outlook, there have been several setbacks to the cryptocurrency market.
For one, a series of high-profile tweets from Tesla CEO Elon Musk had previously sent the market into turmoil.
Whether it was going back on Tesla’s decision to accept Bitcoin payments to causing wild speculation through a series of tweets, no one can accuse the Tesla CEO of being boring.
All of this uncertainty has certainly played havoc with the crypto market with prices crashing one day and recovering again the next.
So with that, we ask the question – what is Ethereum’s value as an investment?
Currently, the cryptocurrency is trading at around $2,500 having remained within this range for a period of several months.
Unlike Bitcoin, Ethereum has been largely ignored by celebrity investors and other high-profile individuals. Instead, the altcoin is supported by institutional investors like J.P Morgan and even countries like Singapore who make use of its smart contract capabilities.
Given the untapped capability of Ethereum with its variety of uses, it’s difficult to put a dollar value on the currency.
Ethereum as a disruptor
Built to improve on the weaknesses of Bitcoin, Ethereum is powered by the Ethereum blockchain.
One prominent feature of the Ethereum network is its ability to execute “smart contracts”. Simply put, these are contracts that can be automatically executed once certain conditions have been met.
All of this can be done without the need for intervention by a third party – something especially crucial for time sensitive transactions.
For example, a smart contract is created to arrange for the transfer of funds between two parties once the price of ETH has reached a certain price. Once market conditions match the terms of the contract, the transaction is then automatically processed and recorded on the blockchain.
After that, the transfer is no longer visible and only those who have been granted permission will be able to view the contract.
This is just one of the ways on which Ethereum has the potential to revolutionize the way cryptocurrencies and blockchain technology are used in our world.
Ethereum is one of the most exciting cryptocurrencies that have been developed and should not be overlooked.
The potential that it brings to the table as both an investment and a tool is simply too good to ignore.
Don’t forget to look for the best Ethereum wallet to store it, you can find a complete list in Tezro.com.