Some of you may only follow ethereum price analysis in the periphery, despite being in the financial industry and being interested in cryptocurrencies. One thing you’ve likely noticed is ethereum jumped out front to become the leading cryptocurrency due to its increasing value. As such, it’s left bitcoin a little behind, despite trailing as a major second favorite.
After following bitcoin over the last several years, it might baffle you why ethereum took first place. It’s worth taking some time to learn why to give you an education on its future value.
What’s the Difference Between Bitcoin and Ethereum?
The differences come in the applications used for each digital currency. Bitcoin mostly focuses on payment technology. Ethereum’s recent focus is on creating smart contracts.
Many businesses and ethereum price analysis experts consider the latter far more important lately because of how wide-reaching it is. It’s allowing more security and transparency for numerous digital transactions. In many cases, smart contracts are just payment technology extensions.
A smart contract brings many of the same principles to regular contracts, except they prevent fraud, as well as bringing more openness to doing business.
Ethereum Has More Corporate Backing
The Enterprise Ethereum Alliance is another good reason you see so much attention on ethereum price analysis. This organization has backing by numerous major financial organizations in giving a vote of confidence to ethereum becoming mainstream.
Through this backing alone, it’s helped push forward the notion smart contracts are the real future. Plus, the fact that the EEA keeps adding more backers makes many corporations excited about investing in this crytocurrency.
Bitcoin continues to rally well, though, including hitting a record high this last May. So it’s now a bit of a contest between bitcoin and ethereum on which one ultimately becomes a cryptocurrency standard.
Will Ethereum Become the Winner?
Outside of ethereum rising almost 2,300 percent over the last year, you still find a few skeptics who think the rally won’t last. Nobody can really guess whether ethereum ultimately comes out on top in the end.
Most likely, we’ll start to see clones of ethereum appear, which could cause its own problems. It’s all the more reason source ethereum technology needs protection, and it’s likely to get that full attention as its price continues to rise.