Comparing cryptocurrencies is quite tricky despite the differences in their values, ways to use, and other characteristics. However, some are indeed better than others.
But what does determine this? The value alone or how many people use it? You have to consider every aspect to know which one is the best for YOU more than in general view.
Everyone knows Bitcoin was the first cryptocurrency, but it isn’t the only one to this date. Others like Ethereum are excellent investments just as the original one, and you might find it more suitable than others.
Does investing in it mean you will avoid all problems related to cryptocurrencies? Not quite, but you might obtain additional benefits and be able to get started in the market and bet for more later on.
That being said, what about going over Ethereum and all its characteristics? We can bet you will love it.
World’s Second Largest Cryptocurrency
Like Bitcoin (yes, we will use it a lot as a reference), Ethereum is a digital currency that follows the same security and blockchain system.
Overall, all cryptocurrencies follow the same structure and are included in the group for a reason.
In the case of Ethereum and what makes it unique is its platform. Ethereum is more than a regular cryptocurrency and more like the Bitcoin of smart contracts.
This means that it has the same capabilities and includes the possibility of using its network to perform other tasks without paying for them in Ethers (the one which is the actual digital currency).
A bit confusing? Let’s clarify some aspects about Ethereum that aren’t simply “it is a cryptocurrency.”
Ether is the actual digital currency or more like the native one of Ethereum, and the open-source blockchain platform stands as well as a system.
Some of the most important digital currencies were born from the blockchain technology used in the network in its early days.
The idea here is to use this “blockchain” to run applications on top of it or even develop entire software without interference between them. It seems pretty revolutionary.
But what could you do with an application that runs on a decentralized platform like Ethereum instead of a server-based one like Dropbox or Facebook?
There’s a wide variety of possibilities and potential benefits once you explore how Ethereum works and what it can do.
We want to make it simple, so let’s just say it is a platform that allows people to join and create smart contracts. Its technology follows the same principles as Bitcoin, but they aren’t entirely similar.
This is because of their characteristics. One could be considered “digital gold,” while the other has more features for running applications on top of its blockchain.
To make it even simpler, one can buy things, and the other can’t.
It doesn’t mean that investing in both or just one of them wouldn’t be good later on.
Who Created It? – One of the Best Ideas
Those that came up with the idea of cryptocurrencies, well, we can just call them genius.
It was a bet when they started to develop or even come up with the ideas for them, but it has sure paid off.
That being said, Ethereum and the project overall was initially created by Vitalik Buterin, who is a programmer and co-founder of Bitcoin Magazine.
Buterin proposed it in 2013, and its development was crowdfunded in 2014.
This made it possible to have the network go live on July 30, 2015.
Following the previous description about what Ethereum does and how it works overall, you must know that Vitalik was focused on building decentralized applications, not a currency system, or, at least, not as the primary goal.
By the time this was proposed, Bitcoin was already in the market and the blockchain system, too, since they both were created together.
From this alone, Buterin believed and continues to do that the system can be used for more than just money.
This is why the introduction of the idea in 2014 at the North American Bitcoin Conference is still considered the main milestone: he knew how to present his vision and receive the funds for it.
Anthony Di Iorio financed the project after knowing and getting to understand the actual extension of Ethereum and where it could be taken.
But besides money and Vitalik himself, many people were involved in making it possible, so the list of founders for the cryptocurrency is quite long to go over.
Skipping all the development, let’s jump to 2015 when it was launched. Just like any other cryptocurrency, it was worth $0, and it still had a long way to work in the market and blockchain, especially for the primary purpose behind it.
Upgrades were required and continue to be frequent to this date. However, the early answer to the need of having proper upgrades and changes helped to place Ethereum a bit faster in the market.
In 2016, a decentralized autonomous organization called The DAO (a set of contracts developed on the Ethereum platform) broke a record of $150 million in a crowd sale to fund the project.
Unfortunately, The DAO had an exploitable flaw and was hacked, which caused the people to panic.
The project was shut down (after a lot of debate), and the money that wasn’t returned to its owners by miners just dropped in value because many had invested in it.
From this point, Ethereum had two directions: going back to what it was before or fixing the issues that led to The DAO hack and continue with changes for more improvement.
Vitalik chose the second option, which is why we are here today, thanks to the split into two networks.
There are many founders right now in 2021, and the technology is still being explored by Vitalik and others when it comes to using this system beyond just using blockchain for currency purposes.
What About Numbers?
Let’s get straight into the point: Ethereum (or Ether since it is the cryptocurrency as we previously mentioned) is worth less than Bitcoin by a lot.
However, this doesn’t mean it is terrible. Instead, you should be a bit happy that it continues to lay low if you are thinking about investing.
Now, let’s focus on its evolution over the years.
We can start in August 2015, when it was worth $1.25, and a year later, it placed at $11.22.
2017 was when Ethereum started to be known for more people than just founders, investors, and those in the field.
This is why its price rose to $719 by the end of that year.
But what about 2018, 2019, 2020, and the last few months?
From 2018 to 2020, the prices weren’t the best due to different circumstances, especially the issues with the blockchain system that even affected Bitcoin by the time.
However, January 2021 was like a new start since the digital currency hasn’t stopped increasing its value since then.
In January, it peaked at $1.385, and in April, its price reached the $2.5k+ mark.
Its current value decreased and ranges from $1.5k to $2k. However, it continues to be Ethereum’s best moment, and people only believe it will continue to go strong and increase in price.
Why Do People Think It Will Be a Good Investment for the Future?
We mentioned just above that many people believe Ethereum will continue to keep gaining value and other uses.
One of these expectations is because this cryptocurrency has been considered very safe from problems, especially hacking, since it uses smart contracts.
Although the DAO hack happened, they rewrote the entire blockchain system (which wasn’t hard, thanks to Vitalik) after two years of being online, so there was no loss of any value or data.
However, this doesn’t mean you should invest recklessly without knowing why you’re investing in the first place.
First, think about the actual use you will give it besides just an investment and if you can afford such an idea.
If you think this is the best investment, keep in mind that Ethereum’s price can collapse, and it happened before.
The cryptocurrency market is volatile and hard to predict. You might be wise to make certain decisions, but a significant part of betting on this option is merely by luck.
Now, how can you start earning or acquiring Ether?
It can be mined by using the mining hardware to dig up cryptocurrencies. Ether miners are people who dig up cryptocurrencies by solving computational puzzles.
Many of these currencies are dependent on the amount of processing power (i.e., how fast a computer solves the computational puzzle) and the economic system in which they exist (like what other currencies it shares).
Some days, more money can be mined for some currencies than others simply because their value has fluctuated earlier that day; this makes the currency to be more worth to mine.
Should You Invest in Ethereum?
In the end, it is always up to you.
We can tell you to make sure to inform and educate yourself properly before jumping to action, or you might regret being so impulsive in this decision.
But if you directly ask us, “hey, I want to know if you would do it,” our answer will be a bit different.
What attracts many people to cryptocurrencies is the fact that they are entirely digital. You don’t need to go out, mine from a specific place, or put tons of effort into it.
But they know it comes with the risks of losing everything just as winning everything (and maybe more).
It’s way too risky for us, and even when we invest some of our money in acquiring Ether, we make sure to focus on better businesses.
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Why Is It “Renting”?
Because you won’t sell those websites unless you want to.
They might be for someone else, but you are the owner and get paid for the simple fact of keeping them working as well.
It’s just like renting a house or real estate, but with websites.
Moving on with the most important part, how much will you make from it?
In the beginning, it will be slow (not gonna lie), but the pace speeds up once you contact several small businesses or get a list of different clients in a niche you chose beforehand.
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