Bitcoin might be the biggest name in cryptocurrency today, but Ethereum is quickly gaining on the current reigning champion in terms of investment and growth in the crypto market. In fact, it is expected to surpass Bitcoin as the top cryptocurrency with the highest market cap value. Like many other cryptocurrencies, Ethereum is decentralized and utilizes open source blockchain extensively. Along with one of the market’s largest industry capitalizations, Ethereum, in blockchain terms, is the most used in the crypto market.
So what has held Ethereum back from taking over the top slot in the cryptocurrency world? For one thing, there are some notable network limitations on top of certain technology-related issues. Ethereum is still in adjustment and is ever-changing because of it. That makes it both interesting to learn about and needs to be updated on to understand.
For anyone curious about crypto-investments, in order to understand Ethereum more fully, it is important to comprehend why it has grown at such a fast pace and the reason for its booming popularity. Let’s take a look at this fascinating up-and-comer in the world of cryptocurrency a little closer.
Shocking Facts About Ethereum Coins
1. Ethereum Was Born From Crowdfunding
Ethereum got its start through group funding efforts and crowdfunding campaigns. Founded by a programmer and researches with a vision, Vitalc Butter, who needed a resource to raise money, Ethereum got off the ground in 2014 and began seeking investors and financiers to group-fund its expansion.
The new cryptocurrency project finally succeeded as financing was aided by a public crowd sale in late 2014, forming the Ethereum Foundation that same year. By July 20, 2015, all expectations and funding for Ethereum were completed.
2. Ethereum Was Intended To Be A White Paper Application
Vitalik Buterin, a programmer and co-founder of Ethereum, intended for Ethereum to actually be a white paper equivalent. A white paper is another term for a guide meant to help readers understand problems and solve them, often directing them on how to best make relevant decisions. In an effort to decentralize applications, Buterin deeply explored and researched cryptocurrency to make the paper’s goal viable. It was even considered that this could serve to improve blockchain technology.
While the Ethereum paper option never saw the light of day, failing to manifest in its originally intended form, it showed the possible direction for Ethereum to eventually emerge instead as viable blockchain technology.
3. Ethereum Is Investor Friendly And Guarantees More Results
One of the prominent downsides of Bitcoin is the uncertainty of ROI (return on investment). Ethereum, however, is more stable, so the expectations for tangible and solid guarantees and backing of investments are expected. One of the reasons for the heightened reliability is Ethereum’s fundraising popularity. Some investors or consumers might be uncertain when first entering the Ethereum sphere, but the fact that the funds stay put until the completion of fundraising is more assuring in terms of investment security.
In essence, Ethereum has resources to help those who finance it. This lends people who want to make their ideas come to life by investing in a project, but are nervous to donate the funds, a greater feeling of confidence and security to do so. If a project fails, Ethereum offers more security in that if the project is not successful or gets insufficient funding, the investors’ funds will be returned.
4. Ethereum Is Growing In Popularity
The vastness of Ethereum’s network is substantial, with as many as an estimated million transactions handled, on average, per day. Overall, Ethereum has now processed somewhere in the neighborhood of 500,000,000 transactions, with the massive number only increasing at an exponential rate, jumping up by about 100 million transactions in a span of six to seven months. This type of exponential growth of the Ethereum network is encouraging to investors and supporters alike, leading to them making additional investments.
The rapid and stable ascension of Ethereum has pointed to its strong and robust currency. What started out with a value of $1,000, would soon break the record high cost of $,4,196.63. That is a 197.4% growth rate into 2021, according to Coin Metrics Ethereum.
5. Ethereum Is Used For Trading And Finance
Ethereum is a multipurpose currency. One of its primary purposes is to establish and develop customized blockchain networks that can be used to trade finance, an integral part of an industry that thrives on digitalization. Because trade financing is a lengthy process that involves extensive and copious documentation, moving it to a digitized format enabled by blockchain technology allows various institutions to offer a more efficient, expedient, and secure transaction process. The ability to bypass banking transaction fees is not a small factor in the utility of Ethereum either.
6. Ethereum Is Touted By Big Tech Companies And Influential Figures
While many rappers and celebrities boast about various crypto coins, big tech is especially enamored with Ethereum these days. Because any new company is heavily reliant on investments, they invest heavily in digital currency like Ethereum which gives them the confidence and value needed for getting a venture off the ground and manifesting into a success. Major players like Microsoft, Barclays, and HSBC leverage Ethereum, with each one discovering Ethereum in their systems.
It shouldn’t be much of a surprise that big business is more open to Ethereum when considering the nature of companies. After all, while Ethereum was in development, its founding members included many big institutions including JP Morgan, CME Group, IC3, Intel, Microsoft, Accenture, BlockApps, and BNY Mellon, along with a host of other big-name players.
7. There Are More Security Concerns With Ethereum Than Other Cryptocurrencies
Irrespective of its rampant growth and popularity, there are some very real and viable concerns with Ethereum in terms of security. By comparison, Ethereum still carries more inherent risk than the other cryptocurrency competitors. While cybersecurity is a factor in any type of digital currency by its very nature, the security concerns with Ethereum have been more prominent, leading the stability and value of Ethereum to be called into question.
The main reason for these security concerns is primarily due to developmental and technological challenges. In addition, Ethereum has raised serious concerns in terms of the limitations of its network and the running list of demand fulfillment failures for its users.
The concerns are not unwarranted when one considers the fact that about 35,000 Ethereum contracts have been vulnerable to hacking due mainly to technological shortcomings, and ineffective coding not yet properly vetted for bugs or system glitches. In fact, hacking Ethereum in its pure form can be relatively easy, so it is important to be wary of Ethereum’s security holes when engaging with this cryptocurrency.
8. Ethereum Has No Limitation Caps
Ethereum has no real restriction mechanism, or cap, which is generally put in place as a control mechanism. Bitcoin, the current leader in popular crypto, has a fixed amount of coins available. Ethereum’s only restrictions and limitations come in the form of Ethereum mining, with only 18 million Ether (Ethereum’s solution to the payment issue) being available to mine every year. An Ether is comparable to a security bond, acting as the cryptocurrency block for the Ethereum network. For those looking to mine Ethers for a steady income, Ethereum is a great way to accomplish that.
9. Most ICOs Are Hosted On Ethereum
Businesses are able to utilize a special currency for funding or raising capital. This type of cryptocurrency, commonly known as ICOs, are able to be traded, invested in a business, or exchanged for financial support. Most of the ICOs in the world happen to be hosted by Ethereum, making it far more likely that investments in ICO sales were made via Ethereum. About 75% of all hosted ICOs in the cryptocurrency market are on the Ethereum blockchain.
10. Programmers Who Coded Ethereum Developed Their Own Language
Due to the pivotal importance of programming with any cryptocurrency, Ethereum programmers actually developed a proprietary programming language called “Solidity.” This programming language essentially makes Ethereum stand out. It is a statically styled programming language that was created for the purpose of and explicitly targeting Ethereum operating contracts.
Bitcoin uses a script named Satoshi, which Solidity has some distinct benefits over. For instance, it allows one to do more, and in terms of specialty, “Solidity” is a “statically-typed curly braces programming language.”
Shocking Facts About Ethereum Coins, Conclusion:
In conclusion, Ethereum coins have a rich history and impressive technology behind them, but also some surprising facts that are worth noting. From its creation as a fork of Bitcoin, to its use in decentralized finance and non-fungible tokens, Ethereum has established itself as a major player in the cryptocurrency world. With its smart contract functionality and constantly evolving ecosystem, there’s no doubt that Ethereum will continue to make waves in the years to come.
If you found these 10 Shocking Facts about Ethereum Coins to be informative, be sure to check out our next article, “TOP 10 Shocking Facts About Dogecoin Coins,” to continue learning about the exciting world of cryptocurrencies.
frequently asked questions:
What Ethereum Exchanges Are Available For Purchase?
The biggest cryptocurrency exchange in the world is Binance. Founded in 2017, Binance permits the trading of cryptocurrencies like Ethereum, alongside more than 500 others. These are able to be purchased via fiat currency or various crypto ones. It allows buyers to purchase coins from exchange bank transfers, debit cards, credit cards, and SEPA transfers. Ethereum can also be purchased from LBank, which is the world’s leading cryptocurrency exchange program that offers professional and secure services to crypto users from around the globe.
How Worthwhile Is A Ethereum Purchase?
Many crypto enthusiasts and investors regard Ethereum as more than just a well-known altcoin or just another of the many available cryptocurrencies. By the end of 2022, Ethereum has been anticipated to grow by as much as 400%. Ether (ETH), which serves as Ethereum’s native token, had its value skyrocket since its inception and introduction to the crypto market.
What Is Ethereum Projected To Be Worth In 2030?
Many long-term analyses have been performed to try to determine the potential price prediction of Ethereum by 2030. Based on current trends and figures, it is expected that by the tail end of 2030, the price of ETH will equal as much as $25,000 per token.
Which Is Better: Ethereum Or Bitcoin?
“Better” is a tricky definition when it comes to cryptocurrency, but in essence, it comes down to the purposes of the investment. For transaction systems that operate in a peer to peer model, Bitcoin proves to be the more suitable system, but when there is a need to devise and build smart contracts and distributed applications, Ethereum seems to be the better option.
As noted earlier, Ethereum is regarded as more stable, while Bitcoin is more secure in terms of being vetted for various flaws, bugs, and anomalies. Therefore, the choice of which crypto works better is based on an individual and their particular set of needs.
Where Will Ethereum Be In 5 Years’ Time?
Closely monitoring Ethereum’s currency, analysts have been able to offer up particular forecasts for future long-term values of Ethereum. By the end of 2022, the predicted price for ETH is expected to cross the $2000 threshold. After a 5 year investment or the end of 2027, the price of ETH is projected to reach $9,800.66, meaning that its current worth will have appreciated by a stunning 719.32%.