You’ve likely heard about ethereum as an alternative cryptocurrency to bitcoin, though considered it an overly niche subject. While it’s true crytocurrency maintained a sideline interest for a while, it’s on a road now to extreme growth. Investing in ethereum can become a major business move for you because it’s starting to outdo bitcoin in value.
If you’re new to ethereum, it works just like bitcoin in providing a more secure digital currency designed to withstand economic turmoil. This is one reason cryptocurrencies have become more popular with companies and financial institutions as we head into more economically volatile times.
With a lot of ethereum backing by these organizations, you can see why it’s starting to flourish. So why should you check its price? You’ll be able to see just how much demand is there, including application usage.
Reflecting the Demand
Keeping an eye on the price of ethereum helps you realize how much demand there is now in comparison to bitcoin. The original intention behind ethereum was to build an alternative to bitcoin by augmenting it for similar uses.
At the core of this is blockchain and improving upon its technology. As such, ethereum’s use is mainly in smart contract applications. Smart contracts give a more secure and transparent way to do financial transactions over the internet.
As noted by Investopedia, ethereum raised $18 million in bitcoin almost three years ago to help fund the new cryptocurrency. Ironically, it’s about to supersede the currency used to fund its development.
How Much Has Ethereum Rallied in Price This Year?
You’ll want to keep an eye on ethereum’s price throughout this year and beyond. CNBC reminds it’s rallied 2,700% just this year alone, which is astounding growth. It’s not to say we won’t see a correction, something CNBC notes could occur at a 38% rate soon.
This doesn’t take away from ethereum’s fast growth rate, giving you some additional insight into its application usage.
So where is ethereum being used? You can look to major financial organizations like Barclay’s, which now use the smart contract application ether blockchain designs. More specifically, Barclay’s uses ethereum’s smart contract process to trade derivatives.
Also at play is the Enterprise Ethereum Alliance (or EEA), which helps companies work together to start using this cryptocurrency. Recently, they added 86 firms to their list, giving substantial more reason to follow ethereum’s price rise.
How Long Will the Growth Last?
The biggest concern now is ethereum might reach a peak level, then become cloned. If this occurs, it could pose a threat to the original ethereum technology, despite cloning already being underway. Most of these clones are small, and two currently existing include Krypton and Shift blockchains. Some worry the group behind these clones may attack Ethereum Classic (or ETC).
While this can hopefully be overcome, the use for ethereum is still quite astounding. It’s worth studying other real-world uses to give you an indication why it probably won’t falter in value.
Uses for Ethereum That Improve on Bitcoin
Another good reason for the price increase is ethereum’s faster transaction rate. It has a block time of under 15 seconds, compared to 10 minutes for bitcoin.
Many find it attractive because it had crowdfunding in its creation, unlike bitcoin, which has most of its coins owned by early miners.
On the horizon is the intention to create a private ethereum, something very attractive to financial companies. However, the push is on through the EEA to create a standard and open-source version everyone can use without conflicts.
Keep reading us at www.EthereumPrice.today as we continue looking at ethereum’s value and its continued value in the cryptocurrency marketplace.