Cryptocurrency Ethereum could ultimately prove more lucrative than Bitcoin. Although it hasnâ€™t been as popular the worldâ€™s number one crypto, investors are taking notice of its powerful financial technology.
By market value, Ethereum, also known as ether, is the second-largest digital coin behind Bitcoin. Itâ€™s easily the most credible and established alternative to the king of cryptos.
â€œItâ€™d be easy to get wrapped up in Ethereumâ€™s status as the second-largest digital asset and attribute its stunning rise â€” itâ€™s more than doubled in less than two months â€” to bitcoinâ€™s halo effect,â€� reports InvestorPlace. â€œThat misses the mark because Ethereum is evolving in its own right and investors are taking note, indicating that thereâ€™s demand among crypto market participants for a legitimate alternative or complement to Bitcoin.â€�
Ethereum Use Cases Go Far Beyond Bitcoin
Ethereum, is an open-source, blockchain-based distributed computing platform that can support smart contract functionality.
Thatâ€™s a complicated way of saying that Ethereum not only makes a cryptocurrency called ether possible, but can also support the launch of new cryptocurrencies and make it possible to crowdsource funding for new projects.
The simplest way to think about Ethereum is to compare it to something you probably use every day: your mobile phone. If you have an Android or iOS phone, you have apps that can perform a wide variety of functions from ordering an Uber to mapping a route across town.
What gives Ethereum an edge against Bitcoin is its implementation of smart contracts, which allows developers to run decentralized applications, or dapps, directly on the Ethereum blockchain. Although the possibilities for smart contracts are nearly endless, a few dominant use cases have emerged.
â€œEthereum may never sport five-digit prices a la Bitcoin, but that doesnâ€™t mean the number two crypto isnâ€™t destined for big things,â€� according to InvestorPlace. â€œDo some quick research and itâ€™s easy to find $2,000 price forecasts. From current pricing around $1,400, that target implies significant upside. Assuming Ether shows the ability to exceed those expectations and if the CME futures stoke institutional interest, this could easily be the â€œnext big thingâ€� in digital currencies even if it never sees $10,000.â€�
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
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