|image Source Google – Bernardmarr.com|
Ethereum The Next Big Mover After Bitcoin
Bitcoin is easy to understand: slow-moving digital gold. When people say that bitcoin is a currency or it’s not used to make purchases, they show that they don’t understand it. Bitcoin is long-term savings account protected from inflation using code, thanks to scarcity (there are only 21M bitcoins). That’s it.
Ethereum is a lot harder to understand. It has hundreds of use cases. This is why, if you begin to learn about Ethereum and what it does, you can benefit greatly from it. I learn something new about Ethereum every day.
It’s a beast.
Why should you pay attention to Ethereum?
- It’s the second-largest cryptocurrency. It launched in 2015
- The previous generation of tech companies made a lot of money thanks to network effects. Blockchain-enabled, decentralised technologies like Ethereum will power the next generation of technology.
According to some experts, Ethereum will eventually outnumber Bitcoin in both size and price. This is why you should keep an eye on Ethereum.
The One Sign That Will Determine Whether the Ethereum Price Exceeds Bitcoin
Raoul Pal is a finance legend. He recently switched from putting the majority of his money into Bitcoin to putting some of it into Ethereum.
Raoul came up with a way to predict the future prices of Bitcoin and Ethereum. Addresses are a concept in both cryptocurrencies. An address is analogous to a user’s account.
Raoul has shown that as the number of user accounts goes up — just like with Facebook, Twitter, Uber, Netflix, etc. — both the price per coin and the total value of the network rise. (I say network because Ethereum and Bitcoin aren’t corporations, which is another cool feature of both technologies.)
Ethereum is built by thousands of developers all around the world that has dedicated their time to the project and combined their resources.)
This phenomenon is known as Metcalfe’s Law. Metcalfe’s Law has been used in finance for many years. All you need to know is that the law helps explain how a network grows and allows you to value a network like Ethereum without being a child genius.
According to Raoul’s analysis, Ethereum is “more viral than Bitcoin.”
|image source – Raoul Pal Tweet|
BTC = ETH. Fact. Different assets, different ecosystems, same adoption, same behavioral economics = same but different… — Raoul Pal
Should You Invest in Ethereum?
Based on your circumstances, only you can answer this question. Stocks feel wrong to me right now. I don’t like paying the highest prices ever. So I have and will continue to buy Ethereum. When it comes to Bitcoin and Ethereum, I follow the 80/20 rule. If I invest $1000, $800 will go into Bitcoin and $200 will go into Ethereum.
There is no doubt Ethereum is going to play a huge role in our lives. I think it’s worth a small investment, but only if you have the money you’re prepared to risk.