There is a general saying in the crypto-investment world that the greatest mistake you can make is to buy more bitcoin than you are able to lose, and the greatest mistake you can ever make us not to own any bitcoin at all. Same can be said of Ethereum, bitcoin’s biggest rival and touted nemesis. Many times detractors of the cryptoeconomy have predicted it’s untimely demise even with the onslaught from governments like China, cryptocurrencies especially the big two (bitcoin and ethereum) have shown much more resilience than what most expected, bouncing back even stronger after major times of crisis. Ethereum unlike bitcoin is more than just another cryptocurrency, it has much wider application as it takes of the use of the blockchain technology to another level. For example, email is just one use of the internet, so also cryptocurrency is just one facet to the use of the blockchain technology. As such bitcoin is only a cryptocurrency while Ethereum covers a much wider field on the blockchain with several major applications to it.
From its lunch in July 2015 till date Ethereum whose adaptation is ever increasing has witnessed a corresponding meteoric rise in its prices. Like any commodity with the ability to double its value over the space of a few days as has been witnessed severally, Ethereum has sparked huge interests from investors and money speculators alike. Cryptocurrencies are prone to volatility in prices, many have nose-dived and never to come up again, it is an adrenaline rush filled investment sector as there’s always that possibility of losing it all. Ethereum however, with its better use of the blockchain technology and its wider application beyond just an alternative digital currency tends to be the much safe bet among them all. It just recently became the first cryptocurrency to get a state backer in Russia, further titillating the palates of speculators all over the world. Even more serious long-term investors are betting on Ethereum, the main attraction for them being one of its greatest uses the smart contracts which if it catches on will revolutionize many sectors of industry and technology including the banking sector.
For short-term speculators, Ethereum-whenever it gets a dip due to one news story or the other, or the rumors about the death of its inventor- is a very attractive way to make a quick buck. Many times it takes a dip only to multiply its value several times on bouncing back. Those who are putting their money long-term are betting for it to become the new standard in the use of the unstoppable blockchain technology. And if its use does catch-on especially in the banking industry Ethereum will become the new gold, the most precious of resources to have.
Cryptocurrencies are generally a high stakes reward and risks investment, one must certainly not bank everything they have on it. Use money you can easily lose without breaking a sweat, and definitely do not use borrowed money to put into it. The world is yet to agree on the appropriate regulations for these digital goods, and as such whatever money you hedge on Ethereum and other cryptocurrencies can go spectacularly well or end in a crash of apocalyptic proportions. Be safe, invest wisely and may the odds ever be in your favor.
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