Ethereum: The Worlds Most Important Cryptocurrency
When it comes to crypto, everyone has heard of Bitcoin but when it comes to the masses, not everyone has heard of Ethereum. It’s fast becoming one of the most important cryptocurrencies in the world! While Bitcoin is still the dominant player in the cryptocurrency market, Ethereum has emerged as a serious challenger in recent years. So what is Ethereum, and why should you know about it?
What is Ethereum?
Ethereum was created in 2015 by Vitalik Buterin. The vision for the development of the project was to create an environment where anyone can develop their own decentralised application without having any coding knowledge or technical expertise required.
The vision sits within the roots of why we have cryptocurrency – which is to give people the opportunity to achieve freedom and independence over their finances, removing the middle-man (*cough cough* governments and central banks). As a decentralised network, Ethereum allows applications to run without any possibility of fraud or third party interference, which is one of the sole reasons that cryptocurrency was first created.
The platform is powered by Ether, a cryptocurrency that runs on the Ethereum blockchain which can be used to pay for transaction fees and services. It’s also one of the most popular cryptocurrencies in circulation today (second to Bitcoin) and it’s had an incredible run in recent years!
The Growth of Ethereum
The Ethereum network has been growing rapidly in popularity and its success has made it a popular choice for people that want to invest their money into it, and developers who want to build on it.
The price of Ethereum has grown exponentially since it was first launched in July, hitting an all time high in 2021 of over $4891! This makes Ethereum one of the best performing assets in the world and it doesn’t look like it’s going away any time soon either.
Its growth can be attributed to a few different factors.
Firstly, the increasing interest in cryptocurrency and blockchain technology as a whole has led to more people becoming aware of Ethereum and its potential uses.
Secondly, the development team behind it is constantly working on new updates and features that make the platform more user-friendly, which is attractive to businesses and individuals alike.
Lastly, the Ethereum network is much more flexible than other blockchain networks, such as Bitcoin. This flexibility has led to a surge in the number of decentralised applications (dApps) being built on Ethereum, which in turn has increased its popularity and price. This has led to the development of a vibrant ecosystem of dApps in areas like finance, gaming, and social media.
The Growth of NFTs
NFTs are a new type of digital asset (predominantly) based on the Ethereum network and have exploded in popularity in recent months. NFTs are unique, non-replicable and tamper-proof, and can be used to represent anything from virtual assets and collectables, to digital rights and identity credentials.
NFT’s are growing in popularity due to their ability to represent real world assets securely and transparently on the blockchain. This has led to a surge in demand for Ethereum in recent months as more and more people are looking to invest in digital assets that have real world value.
What makes NFTs special is that they’re built on top of the Ethereum blockchain (well, most NFTs anyway) and is one of the key reasons that Ethereum has soared in popularity and value.
To learn more about NFTs, check out my recent blog post: What The Hell Is An NFT?
Ethereum vs Bitcoin
Ethereum is often compared with Bitcoin, but Ethereum has many benefits that Bitcoin doesn’t have. As already mentioned, the Ethereum network allows developers to create decentralised applications which is not possible on the Bitcoin network. It also has a much faster transaction time than Bitcoin – with an average around 14 seconds vs Bitcoin’s 10 minutes. This makes Ethereum more suitable for everyday transactions and allows projects that rely on the network to function more smoothly.
The Expensive Network: Gas Fees!
While Ethereum’s popularity is undeniable, its network is also one of the most expensive to use. Gas fees are the fees charged by miners for processing transactions on the network. They’re similar to congestion charges but they fluctuate massively – the fees go up as the network gets busy and come back down as traffic reduces.
If you’re looking to use Ethereum for transactions, be prepared to pay a high price, especially for small transactions. However, there are ways to reduce gas fees (such as by using an ERC20 token) and the team behind Ethereum is constantly working on updates that will help to reduce fees in the future.
Whilst gas fees remain a costly inconvenience, they remain at the height of conversation until this is resolved. Many users are eagerly anticipating the launch of ETH2.0, due for release this year in 2022, which is predicted to dramatically reduce gas fees, as well as giving the network some ridiculous upgrades.
The Future of Ethereum
The popularity of Ethereum has been growing at a rapid pace in recent years, but it still faces many challenges ahead. Ethereum may be second place to Bitcoin right now but it has the potential to surpass Bitcoin in terms of value and popularity in the future.
Although it’s still in its infancy, Ethereum has a great future ahead and is poised to continue growing in value over time. If you’re looking for a powerful and valuable cryptocurrency to invest in, Ethereum is a popular choice amongst the masses.*
Play to Earn
Like NFTs, Play to Earn gaming is another phenomenon that has soared in popularity over the last 12 months too. Developers have built games onto the Ethereum network where people literally play games and earn money. It’s an incredible concept that is changing the lives of people across the globe through games such as Axie Infinity, The Sandbox and Gods Unchained.
These games are having the biggest impact in developing countries. Unlike mainstream gaming, Play to Earn gaming is accessible to everyone. You don’t need expensive equipment or years of training – you can start playing and making money from the comfort of your own home.
Where You Can Get Ethereum
You can buy Ethereum on most online exchanges, but as with any investment, be sure to do your research before parting with any of your hard earned money. Make sure the exchange you choose is reputable and reliable, and you’ll also need to keep your assets safe, in an online wallet or in cold storage, offline. With investments in general – do your due diligence! If you’re unsure or have doubts, you’re better off leaving well enough alone.
Tell Me More
At The Lifestyle Lab, our members are crazy for Ethereum. Not just for what it offers in monetary value but for what it offers our future. We live in a world where everything can crash and come crumbling down in the blink of an eye, leaving the people and whole industries in financial ruin. Crypto gives people independence over their finances that’s never been seen before and is enabling people to future proof their wealth.
Our crypto offering completely breaks down what crypto is and teaches the basics, as well as weekly market reviews sharing the highs and lows of the week, as well as webinars and 24/7 support. If you’d like to get involved, you can do so for free here.
“THE FUTURE OF MONEY IS DIGITAL CURRENCY” – Bill Gates
*Please note that the content of this blog is in no way constituted as financial advice and is purely for information purposes only. Always do your own research before making any investments.