You must have heard about Bitcoin being the future of the world, but have you heard about Ethereum? If not, then you’ve come to the right place.
If you just entered the crypto world, then you must have seen Ethereum next to Bitcoin almost everywhere in the news and exchanges. Although Ethereum is often compared to Bitcoin, it can’t be considered as a direct competitor of Bitcoin as it is built on completely distinct technology and goals., So, what is ethereum cryptocurrency? Let’s start with the basics.
What is Ethereum Cryptocurrency?
Ethereum definition – Ethereum is a blockchain-based platform for developing and sharing commercial, financial, as well as entertainment apps. The blockchain network has its own cryptocurrency called Ether (ETH) or Ethereum.
The network is also built on its own Ether was initially intended to use within the network for using dApps but is now also accepted as a mode of payment by various merchants and vendors.
Ethereum is the second most valuable cryptocurrency just below Bitcoin in terms of market cap.
Ethereum users utilize the platform to build, publish, monetize, and consume apps or use its cryptocurrency, Ether (ETH) as payment. These decentralized applications are often referred to as dApps.
The blockchain network is based on a proof of work consensus mechanism at the current moment. However, due to scalability reasons, it will now be converted to proof of state with the launch of Ethereum 2.0.
Here’s What You Should Know About Ethereum
Let’s dive more into what is Ethereum cryptocurrency and learn about its history, value, competitors, etc. The blockchain-based network, Ethereum was built to give a platform to developers for publishing smart contracts as well as dApps. All these things can be used on Ethereum without any risks of fraud, downtime, or any involvement of a third party.
The difference between Bitcoin and Ethereum is that the Ethereum network acts as a marketplace for dApps, games, as well as financial services that can be bought using Ethers only.
History Of Ethereum
In July 2015, a group of blockchain enthusiasts created Ethereum. Some of the founders of the network include Joe Lubin, Charles Hoskinson, Gavin Wood, Jeffery Wilcke, and Vitalik Buterin. At the current moment, Vitalik Buterin is serving as CEO and public face of the company.
He is also known to be the youngest crypto billionaire. Although the intent behind Ether cryptocurrency was to use it within the network, it is not also used as a payment method at various platforms like Shopify, Overstock, CheapAir, etc.
Ethereum Market Value and Competition
According to Gartner Research, the top Competitors of Ethereum include Bitcoin, IBM, Hyperledger Fabric, Ripple, Microsoft Azure Blockchain, Blockstream, Steller, etc.
The market value of Ether (ETH) at the current moment is $2,378.00.
Ethereum is the second-largest cryptocurrency in terms of market value below Bitcoin. Compared to the $1.080 trillion market cap of Bitcoin, Ethereum’s estimated worth is $500 billion.
After the largest and the second-largest cryptocurrency comes Tether, Binance Coin, Cardano, Dogecoin, Ripple
What is Ethereum Classic?
In 2016, Ethereum went through a hack where $50 million worth million Ether was stolen. The amount was raised for the DAO project.
To reverse the theft, the Ethereum community agreed to a hard fork that leads to invalidating the original Ethereum and the development of a new one.
The blockchain created after the hard fork is known as Ethereum while the previous one is called Ethereum Classic.
Now that you know what is Ethereum cryptocurrency, let’s find out what is Ethereum 2.0
In 2018, the total amount of ETHs in circulation surpassed 100 million. There is no limit to the amount of ETHs that may be generated, unlike Bitcoin.
The blockchain network is undergoing an update known as Ethereum 2.0, which has been long-awaited by the users. The upgrade is intended to increase the scalability of the blockchain by resolving the congestion issues that have previously slowed it down.
In the year 2017, a game slowed down the transaction on the Ethereum blockchain known as CryptoKitties.
Unlike Bitcoin, Ethereum aspires to be more than just a cryptocurrency. It aspires to provide a platform for a wide range of apps that can securely store data.
Ethereum Price Prediction For 2021
Ethereum Price Prediction by Wallet Investor
According to Wallet Investor, the price of Ethereum will start at $2,134 in August. By the end of the year 2021, it is speculated to reach $2,936. The statistics indicate that the coin will surge above $4000 in 2020 and might reach $10,762 by the 2025 year-end.
Ethereum Price Prediction By TradingBeasts
TradingBeats speculate that the average price of ETH in 2021 will stay within a range of $1800 – $2000. The coin is anticipated to continue its growth steadily reaching $2,500 by 2022 end, $3000 by 2023, and $3,400 in 2024.
Ethereum Price Prediction by Economic Forecast Agency
According to the Economic Forecast Agency, the price of Ethereum will fall down to an average of $1,940. By the end of the year 2021, it will reach $2,140. The coin is predicted to hit $4,920 by the end of 2022 and surge above $5,730 in 2023. It will surge down to $1,585 by 2024 end.
Ethereum Price Prediction by Digitalcoin
The price prediction of Ethereum by Digitalcoin is all bullish for the next seven to eight years. Digitalcoin anticipates the price of ETH will stay around $3,180 in 2021 and $3,975 in 2022. In the long run i.e. by 2025, Ethereum is anticipated to rise above $6,880 and $9,980 by 2028 end.
Ethereum Price Prediction by CryptoGround
CryptoGround’s prediction for Ethereum is also bullish. It says Ethereum will reach $3,320 in a year and $5,350 in five.
Although most of the Ethereum forecasts are positive, crypto markets remain very unpredictable. Therefore, it is extremely difficult to anticipate the coin’s future movements whether it’s for the recent days or for the upcoming years. Before making investment decisions, you must conduct your own research and examine the most recent market trends, news, technical analysis, and get the expert opinion.
We hope the article helped you understand what is Ethereum cryptocurrency. However, if you are planning on making an investment in ETH, we suggest you learn more about its technology, history, past, and future predictions first. Feel free to reach our Blockchain customer service to get investment-related opinions or to clear your queries.