Investors across the globe are rallying around the second-leading digital currency Ethereum, giving it high hopes for the future.
Whether we like to admit it or not, the impact that celebrities have on our lives is undeniable and all-consuming. As of late, the investors are shifting their attention towards Ethereum since the highly-popular guest appearance of Mark Cuban on the Defiant podcast. The American entrepreneur is a notorious supporter of digital currencies and is now sharing his own thoughts about the crypto-asset sector. After his initial reluctance towards Bitcoin, Cuban is now expressing high hopes for the second-largest digital asset in the crypto world. Ethereum still has a long way to go before reaching the highs of Bitcoin, but that doesn’t mean we should wait until it becomes unreachable, says Cuban.
As it was previously proven already, celebrities have their way of attracting attention towards the topics they talk about and engage with. Similar to the Ethereum situation, Dogecoin (DOGE) experienced a significant push after the Tesla giant’s CEO Elon Musk tweeted a single word about it. Since then, the cryptocurrency jumped over 1000%. Still how different these digital currencies really are? This is an important question to ask yourself before deciding on your investment.
The Trails of Ethereum
Despite butting heads for the top spot on the investors’ list, Ethereum and Bitcoin have somewhat different goals and finish lines, suitable to their nature. With Ethereum, you are investing in a decentralized network of its own called Ether, on which the apps are built and operated on a regular basis and without any stalls. Ether is also a place where some other cryptocurrencies are generated and released, which makes it an even bigger deal on the trading market and the entire investing landscape.
Also, when compared to Bitcoin, Ethereum has a lot more development potential and features that can only be found as limiting in the Bitcoin world. Each one of the Ethereum bits is known as repositories, and they are able to provide developing features and access, as well as collaborating and project abilities that are necessary for modern businesses.
Probably the most important feature of Ethereum is in the way its blocks are created. While Bitcoin is based on a technology of its own that is unbreakable and impossible to trace, Ethereum does it a bit differently. With its own security system of building blocks, the users of Ethereum need to put some type of collateral or a stake in order for their purchase to be validated within the system. Also, with Ethereum there is a tendency to stack them instead of mining them, although both are popular and beneficial for the holders.
The Old and Trusty Bitcoin
The cryptocurrency leader established back in 2009 is now worth around $625 billion. The total market capitalization reaches above $1 trillion, which is not something to discourage. It definitely has the greatest amount of attention drawn to it when it comes to investment opportunities, but things are still shaky on the entire crypto market. Namely, the biggest regulatory bodies in the investing world such as the US Securities and Exchange Commission (SEC) have been warning time and time again about the uncertainty while trading with digital assets, as well as the difficulty to regulate them towards the safety of the clients.
Still, one of the most distinctive features of Bitcoin is probably the fact that it has a limited supply – only 21 million Bitcoin will be released, and no one really knows what will happen when that time comes. Still, no one can argue when it comes to its safety, since it is based on blockchain technology. This means that all your information is stored within blocks and impossible to trace or abuse, which is quite a big promise to deliver in this day and age of online businesses. However, the investors are not discouraging Ethereum’s abilities to do the same just yet!