The Rise of Ethereum Trading – Could it Rival Bitcoin?

Cryptocurrencies are the most intriguing creations of modern times. When Bitcoin was first created in 2008, nobody really thought it would ever become a mainstream currency, but today, you can pay for all kinds of things in Bitcoin and there is even a property currently for sale in London that can only be bought using Bitcoin. Most people have heard of Bitcoin, but Ethereum is less well-known. But, this looks like it will be changing very soon.

Ethereum came into being in 2014, thanks to the success of blockchain development. It is a decentralised platform running contracts and applications. These transactions are not free, so they are funded by Ether, a small piece of code. Like Bitcoin, Ether are mined, so when a bundle of transactions is discovered, Ether are created (around 5 every 12 seconds, which is 18 million per year). Transactions are safe, secure, and free from third-party interference. Bitcoin has doubled in value this year, but Ether, which runs on the Ethereum blockchain, has shot up in value by more than 2,400%.

EEA Investment

The Ethereum Enterprise Alliance (EEA) was formed in 2017. This has allowed individuals, startups, and other interested parties to work together using the latest technology. Founding members of the EEA include Microsoft, Santander, Intel, Credit Suisse, and JP Morgan. The formation of the EEA, backed by some of the biggest names in finance and technology, proves that Ether is here to stay.

There is growing interest in cryptocurrency trading, but cryptocurrencies are highly volatile, this is not an investment for the faint-hearted. Nevertheless, it is possible to make serious money investing in Ethereum and other cryptocurrencies.

Controversy

Many people remain suspicious of cryptocurrencies because they are linked to the Dark Web and criminal activities. Concerns about Bitcoin instability and network congestion have encouraged many investors to diversify into Ether, thus driving up demand and prices. But, like all cryptocurrencies, Ethereum is not without controversy.

The DAO (decentralised autonomous organisation) hack in 2016 caused shockwaves. A hacker managed to divert 3.6 million Ether by exploiting a loophole. This caused the value of Ethereum to plummet, but the creation of the EEA has largely restored confidence.

All cryptocurrencies have risen in value this year. Despite China’s decision to clamp down on Bitcoin, it continues to gain traction and the value of all cryptocurrencies, including Ethereum, increased by 17% at the beginning of September. Most analysts believe that cryptocurrencies such as Bitcoin and Ethereum are here to stay and any short-term losses are only temporary.

The Advantages of Ethereum

For investors, Ethereum offers a number of advantages because it exploits the full potential of blockchain technology. There is a limit to how many Bitcoin can be produced whereas the supply of Ether is unlimited. Bitcoin is better known, but Ethereum is moving fast. For investors looking to break into a new area and make the most of future price rises, Ethereum is the one to watch. Right now, the Ethereum community is small, but it is growing and, more importantly, it has learned from Bitcoin mistakes.

Are you ready to start trading Ethereum?