A series of all-time highs hit earlier this week has seen the price of Ether climb in price. The coin made its most recent peak on May 4th, when it soared past $3,400. Since then, the price has declined to $3,335.
It’s possible the price of Ether is currently taking a breather, but many analysts believe the price of Ether has a long way to go before the year ends.
Despite the fact that cryptocurrency is technically non-restrictive, it largely does the same thing as dollars and pounds.
Bitcoin is plentiful. It is used as a means of exchange in different arenas and has become common parlance. It is an abundant form of money as it sits in our bank accounts. It may enable us to do things but it itself does not undertake any activity.
A blockchain is a database that is used to execute smart contracts on the Ethereum platform. This means that contracts can be written using the scripting language of Ethereum and executed automatically should certain events occur.
Ethereum, like most blockchains, is open source. This means that anyone can create and utilize smart contracts, which are simply a series of promises in digital form.
It is a digital asset that contains the same properties as Bitcoin, in that it can be used as a potential store of value and is fungible among people who find it valuable.
Ethereum is more than a cryptocurrency.
This token is a product of Ethereum, which is actually a huge computing network that allows anybody to build a decentralized application. A business could hire a programmer to build a blockchain application on the Ethereum platform.
Even though Ether is associated with the Ethereum platform, it is capable of performing the same function as Bitcoin. Whether or not it does so is simply determined by the parties involved, as they determine whether Ether has any value to them.
Despite concerns that governments do not understand cryptocurrencies, governments have starting to impose restrictions on their citizens trading them, which may impact Ether, but not Ethereum.
Businesses can still use Ether even if governments restrict crypto-currencies including Ether. Banks and many other entities are already using Ethereum platforms for payment services.
Ethereum has the benefit of being associated with Ethereum, which does what Bitcoin cannot do, and has been created because of the limitations of Bitcoin. Bitcoin remains the biggest threat to Ethereum, as government regulation and financial crime continue to drive market behavior.
Ethereum’s growth has been measured against other networks in the cryptocurrency space. When ETH hit new all-time highs earlier this week, several headlines compared Ethereum to some of the largest corporations and payment networks in the world.
Adding Eth2.0 will also allow Ethereum to switch from a Proof-of-Work (PoW) algorithm to a Proof-of-Stake algorithm, which will financially incentivize users to engage with the network long-term, contributing to price stability.