Now that cryptocurrencies are here to stay, you do not need to invest blindly. Know the facts about a digital coin you invest in to avoid blind investing. Many investors have poured their funds not Ethereum without doing any background check or what they are stacking on.
Ethereum (ETH) has been around since 2014 and five years down the road is not a small feat. Due to misinformation, many investors lose their saving through Ethereum and other coins simply because they do not know what the platform does or what the brand is all about. Cryptocurrencies are not money minters, they are there to make you’re your better. Here are 5 Ethereum facts to help you benefit from investing in Ethereum.
Ethereum is not a Cryptocurrency Per Se
Yes, that’s right; Ethereum is not a true cryptocurrency. Ethereum is a platform that the homegrown token Ether (ETH) rides on. Many users tend not know the difference between Ethereum the platform and ETH the currency. When there is news in social media, by just mentioning of the two affects the coin performance in the market.
Understanding the two helps you make sound decision on when to buy and when to sell your tokens. Ethereum is the brand that drives the ether or ETH. When there are upgrades in the platform, the effect boil down to the coin performance and they work together to survive and the investor to gain.
Ethereum was Not Meant to be
This fact might come as a surprise to you. Ethereum was not meant to be created if Bitcoin has addressed all cryptocurrency demands. In fact, the mistakes that Bitcoin made have resulted in the growth of the cryptocurrency market. The many Altcoins out there tend to address specified real life issues that Bitcoin missed.
Based on the above fact, the entry of Ethereum has invaded the Bitcoin market share and the price of the coin has been rising steadily ever. However, all as not been not rosy with ETH; price shifts are a reality in the crypto-world and affects all other digital coins. The past year alone, the value of ETH grew five times. The steady nature of the coin makes it a threat to Bitcoin in the future.
Ethereum is picking up from Bitcoin Loses
When you look at the Ethereum charts from late October 2017 to mid-January 2018, you will notice a very promising trend on the coin. With these trends, you can accurately predict where the Ether coin is headed. This is a stable coin in terms of consistency and market penetration.
The consistency will help you determine the long term and short term gains of the token unlike Bitcoin where you never know what the future holds for your online crypto investment. Strange enough, more ETH coins being exchanged with Bitcoin is a good proof that ETH value is on the rise, this is a truth you need to seek as an Ether investor.
Ethereum is the Banking Industry Disruptor
Banks are looking for the cryptocurrency entry point and they have found it in Ethereum R3. They are test-running on how they can integrate their systems into the mainstream blockchain. If this works well, trade will become seamless between banks and blockchain based financial infrastructures. As we speak, a Microsoft troubleshooting system is riding on the Ethereum ecosystem for the financial sector’s implementation.
The UBS, Barclays and HSBC are partnering with Ethereum’s R3 startup to increase the consumer banking experience through the blockchain technology. Ethereum transaction speeds, transparency and cost are some of the benefits the platform seeks to pass on to the baking sector and later to the consumer.
Ether has Value but the Coins Future is Bleak
Well, this might come to you as a shocker but it is a fact. The ETH coin value keeps skyrocketing but its future is questionable. Investing in Ether i not a guarantee that you reap any benefits in the future; it’s a real gamble. Investing in a digital coin that has a rosy past and uncertain future is not for the feint hearted.
With a stable usable coin, Ethereum was designed to provide smart contracts. These might turn expensive to the ordinary user pushing the ETH value up leading users abandoning the platform for cheaper solutions from other Altcoins. If you are in Ether for the long haul, consider this fact.
Whichever way you look at it Ethereum is a good platform but plays in a different league to Bitcoin. Other Altcoins are competing for the same market share and all might not be as smooth as envisioned by Ethereum developers back in 2014 but a growth from under $1 to the current price of $520.81 should be your due diligence investment guide.