5 Reasons to Buy Ethereum
Before jumping to reasons let us go through a brief introduction of Ethereum.
Ether is the cryptocurrency of the Ethereum network, and differs from Bitcoin and other altcoins as it was not created as a cryptocurrency for financial institutions but instead as the “fuel” powering its blockchain. It has been specifically created for developers to create their own applications that can represent ownership or the movement of value from one party to other. Furthermore, it allows if-then type smart contracts to be coded onto the blockchain to create irrefutable terms for contractual agreements.
For those who don’t know what Ethereum is and are looking to buy it, it’s important to understand that it is much more than a digital currency. When you buy the cryptocurrency, you are actually buying the network’s digital currency(Ether). This means that every time you buy it, you are putting money into the most powerful network that currently exists. And the potential for that network is endless.
Note that the article is not suggesting that you should buy Ethereum but it is offering reasons to buy it.
Here are the top 5 reasons to buy Ethereum:
- It has more applications than Bitcoin
- It is backed by fortune 500 companies
- It is being incorporated by financial institutions
- Ether is relatively stable
- Ether isn’t going down
Ethereum has more applications than Bitcoin
Bitcoin was the first coin to ever operate on a blockchain network. Every transaction that takes place in the Bitcoin blockchain is recorded in a separate block. Because each block is stable, every transaction is a strong link that makes the overall blockchain secure and increases currency stability.
But it’s blockchain is far more advanced than Bitcoin’s.
It is written in Turing-complete code language and because of this, any script can run on it. The blockchain records things far more rapidly than Bitcoin – processing transactions in 12 seconds, as opposed to Bitcoin’s 30 minutes. for further information, you can also take a look at Bitcoin rivals on the rise.
Ethereum is backed by Fortune 500 companies
Another evidence for it’s long-term prospects is the Enterprise Ethereum Alliance(EEA). It spiked sharply after the EEA came public.
Dozens of Fortune 500 companies decided to collaborate on furthering the Ethereum network technology. They want the blockchain for its speed and efficiency. But they also want the its network for its ability to execute smart contracts.
In the business world, efficiency is money and whoever is going to offer that, then the business is going to reach new heights.
Ethereum is being incorporated by financial institutions
Bitcoin is still facing problems regarding acceptance from banks and countries worldwide. But banks are looking kindly on Ethereum. No digital currency is as well-positioned as Eit to be adopted by masses.
Bank of America is the first financial institution to work with it’s blockchain.
Investors should take a note that it is the only technology being incorporated by major institutions which assure Ethereum’s long-term profitability.
Ether is relatively stable
Ether’s price has been steadily rising and is stable currently. Bitcoin’s price is facing too many fluctuations since it ascended in 2017. In terms of price alone, cryptos with more stable prices like Ether make more sense as currencies than Bitcoin.
Ethereum isn’t going down
The fascinating thing to notice in the case of Ethereum is its market cap value went up after the last summer even though its price didn’t. Therefore, it stands at the second position leaving all the cryptocurrencies behind in terms of market cap value.
Although Ethereum was replaced by Ripple(XRP) in the start of 2018. Within a week, Ethereum restored its place with a market cap of more than $127 billion leaving Ripple at the third place(market cap is $68 billion).
It is not hard to invest in. Currently the most popular digital currency exchange is Coinbase. You just need to do your own research and go for the option that seems suitable to you. You can also take a look at Ethereum wallets for more information.