Bitcoin, Bitcoin, Bitcoin, it’s all you hear about when people talk about cryptocurrency. People often forget that there are a vast number of other cryptocurrencies out in the market, most commonly known as alternative cryptocurrencies or “altcoins”. One of the bigger names in this group is Ethereum, the second-largest cryptocurrency by market capitalization. Without diving too deep into technical the key difference between Ethereum and Bitcoin is that Bitcoin is a currency whereas Ethereum is a technology that produces a biproduct of currency.
Specifically, Ethereum has something called “smart contract technology” whereas Bitcoin does not. This tech has been adopted by many companies and startups as a way to transact, which is why support has manifested robustly in the real world, with entities such as The Enterprise Ethereum Alliance, a group of Fortune 500 companies working together to build upon and learn from Ethereum’s technology. Over the past year, Ethereum has seen a major rise in value, but most recently that rise has been taken to new heights. In the past few days, Ethereum has started off the new year right, pushing back above the $1000 line for the first time in nearly 3 years. So, what does Ethereum’s forecast look like?
Well, many experts believe that Ethereum still has a long way to rise. For example, James Todaro, managing partner at Blacktown Capital, believes that Ethereum has the potential to reach a $1tr market cap, on the other hand, experts such as Ryan Selkis, co-founder, and CEO at Messari reminded investors that that Ether is not money, and increasing demand does not necessarily mean new price records. Do you think Ethereum will continue to rally in 2021? Or will it fall into the shadows of Bitcoin?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.