What is Ethereum And Why Did It Rise Above 2000% This Year?
Even though Bitcoins doubled its price this year, another cryptocurrency grabs attention with its over 2,300% growth over the same period. It's about the virtual currency ether (ether).At the beginning of the year, the Bitcoin traded for $ 1003.25 just to break the $ 2,300 first-ever level in its history this week. This is a growth of 137% since the beginning of the year.The enormous interest in the Bitcoin also provokes activity in other cryptocurrency. The virtual unit, called Ether, also climbs the wave crest. At the beginning of the year, it was traded for only $ 8.24, with the price rising to $ 203.30.
- What is Ether?
Ether is powered by a technology called Ethereum, which is another block system other than the one behind the Bitcoin.Although the system has a virtual currency, like its largest competitor, its companies are more interested in the potential of Ether technology and its possible use in everyday life.Ethernet is designed to support so-called smart contract applications. Smart contract is a computer program that can automatically fulfill the terms of a contract when it meets certain conditions.
- What's the difference with the Bitcoin?
First of all, Ethereum is a much younger Bitcoin system launched in 2014, while the most popular Bitcoin was launched in 2009. The market capitalization of ether amounted to $ 18.6 billion, while the bitumen hit nearly $ 40 billions. Secondly, as the Bitcoin focuses on payment mechanisms, the ether focuses on the above-described smart contract system.
- Why does the price of the ether bounce so much?
Unlike a Bitcoin, which receives support from investors and governments, Ethereum enjoys more attention from corporations that are using smart contract technology.
A team called the Enterprise Ethereum Alliance (EEA) is already working to connect large companies with the new technology.At the same time, the activity around the Bitcoin investors to invest in different cryptocurrency. For example, last year, around 83% of ether buyers performed shipbuilding transactions.
- Will the price increase continue?
Not all analysts agree that ether will continue to grow. Bitcoin merchant Jason Hamilton is worried that systems such as Etheric can be cloned. In his words, the interest in ether is more of an interest in the technology behind it, which can make a number of companies simply create their own technology.He says he does not trade with ether because he worries that the whole thing may turn out to be a big bubble.
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