Is Etherium the Next "Big Thing" in Cryptocurrency?
Scroll DownAt a time when some market analysts are issuing warnings about Bitcoin settling back down to $16,000 from a high of $60,000 just a few months ago, things are not looking as bad for the Ethereum segment. In fact, trading volume suggests that investors who have been disappointed with Bitcoin are now taking positions on ERC-20 tokens such as Cardano, but even centralized digital currencies such as Ripple are now seeing increased market capitalization.
A few years ago, Etherium, the first Ethereum-based digital currency trading platform came to life in Hong Kong. After the success of the initial token sale (ICO) and a very positive report card on the platform from various analysts, Ethereum became the most prominent cryptocurrency for the foreseeable future. It should be noted that Ethereum always lags behind Bitcoin, but this is mostly a matter of investors riding the market for its profit potential. When it comes down to how much promise the ETH blockchain offers, Bitcoin starts to lose its shine, particularly with regard to the carbon footprint required to keep the original BTC network operational.
Etherium was able to raise funds from several angel investors as well as from the sale of ICO tokens. In fact, just recently, it reached over $3 million in funding from more than 50 institutional investors who see the value in a future world where sovereign digital currencies are based on the ETH blockchain.
For a digital currency, Ethereum is very popular as a store of value, which can be easily converted to cash on exchange. While the platform has many flaws with regards to regulation (which it will get fixed very soon), the idea of having someone who could do that is exciting. Ethereum is considered as a kind of "proof of stake" cryptocurrency, which means there is a strong probability that a transaction will never fail. Unlike cash and a few other digital currencies, no one is actually holding this piece of digital cash, which means any hack would be instantly discovered. The proof of stake aspect of ETH makes it less resource-intensive than Bitcoin, which makes it a more ideal blockchain.
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