Why is the world moving towards investing in Ethereum
Ethereum: A Complete System, Not Just a Digital Currency!
With the widespread of digital currencies and investor demand for them, and the widespread of Bitcoin as a digital currency, the recent popularity of Ethereum is not only a digital currency but more!
Ethereum is a complete system and software platform that acts as a decentralized app store and internet; That is, it is not controlled by a single console, although most companies on the Internet are built on a centralized system, this system is operated by thousands of devices around the world.
Such an independent electronic system would of course require a digital currency to fulfill the computational needs required to run any application or program, and this is represented by the role of the Ether (ETH) digital currency.
ether was launched in Switzerland in 2015 by its founder Vitalik Buterin and was first listed in the Arab region in February 2017 through the BitOasis platform, and is only part of the Ethereum smart contract application.
How does the Ethereum system work?
Ethereum consists of an internet browser, its own markup language, and a proprietary payment system that allows its users to create applications on a system called (blockchain), which is a distributed public ledger technology.
decentralized applications (apps)
In principle, it is similar to other smartphone and cloud apps, but it is hosted on a blockchain system, is not governed by a developer or central authority, and cannot be deleted once it is placed on the blockchain.
They are a special type of Ethereum account that can get credit and send coins, the difference between them is that the user has no control over them, so they are also called self-applied tokens.
Hosting cryptocurrency at ERC-20
The Ethereum network hosts thousands of other cryptocurrencies or tokens, including some of the most famous and largest cryptocurrencies in the world, such as (Chain Link), (Tether), (Shiba Inu), etc.
Ethereum and Bitcoin: Are they the same?
As the first stable digital currency, Ethereum is part of the Ethereum project, and the main differences between them are as follows:
- Both Bitcoin and Ethereum are based on blockchain technology that allows checking and confirming the history of each coin.
- Bitcoin and Ethereum work on different protocols, which means that some transactions that may be permitted on one system may not be permitted on another.
- Ethereum is recognized by the Ethereum network but is not widely known, in contrast, Bitcoin is not recognized as a currency in Ethereum.
- Up to 21 million bitcoins can be created, but the creation of Ethereum can be endless.
- Bitcoin can be mined using industrial mining farms, while individuals and users can decentralize Ethereum.
What is the price of Ethereum against the dollar?
Ethereum first traded at $2.77 on August 7, 2015, then dropped to $0.81 on August 8, 2015, and remained below $1 until January 2016.
Four years in the world of trading significantly boosted the value of Ethereum; In December 2020, the value of the coin was $567.6, while the value of Ethereum was around $2,860.64 on March 22, 2022 AD.
Should you invest in Ethereum?
Needless to say, the cryptocurrency market is very volatile, so profitability is not always certain, but since Ethereum is such a popular currency, the reason for its popularity can be attributed to the following:
- It is completely free from any outside interference or the presence of third parties, ensuring the complete independence of the decentralized application and its protection from hackers.
- Eliminate any possibility of fraud, corruption, or forgery to adopt the consensus principle (blockchain) used in the system, as any changes must be fully agreed upon.
- The entire platform is decentralized, which means there are no fixed points of failure, ensuring that work on the system never stops.
- The platform provides users with the Ethereum Virtual Machine (EVM), a smart contract system that protects users while ensuring that programs do not interfere with each other.
- On the other hand, with the widespread use of Ethereum, the project is still relatively new, so the Ethereum system has evolved in terms of technical performance and has undergone several updates during its development years, most of which are cyclical. Updates are used for development and security purposes, such as Homestead and DAO Updates. and (Eagle).
Experts also recommend keeping your investment under 5% of your total storage portfolio and investing in what you might lose, rather than sacrificing important financial commitments.