Ethereum- a cryptocurrency one should not ignore

CMP: $722.06 (15:27, 29.12.2020), Market cap: $82.74B, Circulating Supply: ETH113.07M, Approx. daily Volume: $20.60B, Share in total Crypto trading volume: 9.73%

Ether is a fundamental token for operation of Ethereum, like other cryptocurrencies the validity of each Ether is provided by a block-chain, which is continuously growing list of records, called blocks, which are linked and secured using cryptographic hash functions. It is listed under the ticker symbol ETH and traded on cryptocurrency exchanges

How ETH is different from bitcoin

  • Bitcoin is a singular form of digital money where users can send, receive and hold only bitcoins. Ethereum is a smart contract platform which allows entities to leverage block-chain technology to create numerous different digital ledgers and can be used to create additional cryptocurrencies that run on top of its block-chain. For example, Ethereum can be used to create tokens that are pegged 1:1 with the value of the United State Dollar (called a Stablecoin) if a user wanted to transfer or hold the value of dollars on the block-chain. Ethereum itself can also be sent, received and held as digital money.· Bitcoin is aimed to only be money, compared with Ethereum where a goal is to also run applications (like the Google Play or Apple App store).
  • Ethereum block time is 13 seconds, compared with 10 minutes for bitcoin.
  • Mining of Ether generates new coins at a usually consistent rate, occasionally changing during hard forks, while for bitcoin the rate halves every 4 years.
  • For proof-of-work, Ethereum uses the Ethash algorithm which reduces the advantage of specialized ASICs in mining.
  • Transaction fees differ by computational complexity, bandwidth use and storage needs (in a system known as gas), while bitcoin transactions compete by means of transaction size, in bytes.

My View: The price of ETH is expected grow at much faster rate compared with its other peers. A price range of $1600 -$2000 is quite possible in couple of years.

By, Sandesh Nandode, Crypto & Forex Analyst

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