An astounding estimate of 59.1 million Americans own some form of cryptocurrency. As the digital currency continues to grow in popularity, so will its value.
But since cryptocurrency is not tied to the same rules as stocks and bonds, there are more unknowns. The latest up-and-comer in the world of cryptocurrencies is Ethereum. Ethereum is another player in the virtual currency world that experienced incredible growth in May of 2021.
If you have never heard of Ethereum, you are in the right place. In this article, we will take a look at Ethereum, its origins, and whether you should jump on this cryptocurrency train.
What Is Ethereum?
The answer to this question is a bit complex. Ethereum is a decentralized computer network specifically designed to process cryptocurrency. The cryptocurrency that funds Ethereum is Ether. When you are investing in Ethereum, you are purchasing Ether.
Ethereum is a complex system that spreads out coding and fail-safes. Arranging the network in this way makes it much more difficult for issues with theft and fraud to occur. This built-in safety net makes Ethereum an attractive investment choice.
A Timeline of Ethereum Events
In 2015, Vitalik Buterin and Gavin Wood launched their decentralized platform: Ethereum. Vitalik initially wrote about the concept of Ethereum in a 2013 white paper. He theorized that Bitcoin’s cryptographic logic could work for other applications.
Attempts were made to utilize the Bitcoin platform. But after a few stops and starts, Vitalik began work on what would become Ethereum. In 2014, crowdfunding made the development of the platform possible.
Gavin Wood helped to write the language that allowed for the creation of complex contracts. He joined as co-founder of Ethereum in 2014. Work continued until 2015 when Ethereum hit the public eye in the summer.
Ethereum has quickly grown into a platform that is comparable to the success of Bitcoin. Since there are multiple applications on its decentralized network, Ethereum functions as more than just a digital currency platform.
That is part of the reason Ethereum is quickly becoming so valuable. Its multiple uses and security features add to Ethereum’s overall value, which in turn increases the value of Ether.
Should You Buy?
The short answer is an enthusiastic yes. In early 2021, Bitcoin peaked at an incredible value of sixty-five thousand dollars. It has since dropped in value, but still hovers around thirty thousand dollars a share. Not a lot of casual investors have that kind of money for digital currency.
On the other hand, Ether hovers between one and two thousand dollars. Still steep for some, but much more affordable than Bitcoin.
Plus, Ethereum’s value continues to rise as more uses are discovered for the platform. If you can get in on the ground floor, exploring Ethereum is worth it.
Learn More About Cryptocurrencies
Now that you have an idea of Ethereum, its history, and its uses, it is time to prepare for investing.
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