What is Ethereum? A Short Intro
Simply put, Ethereum is a smart computer.
Perhaps you’re saying to yourself: aren’t all computers smart?
Well yes. But you know how we had phones, and then we had smartphones? This is like that. Ethereum allows computer programs to run “smart contracts.”
Smart contracts are computer protocols that digitally facilitate, verify, or enforce the performance of their code. With a smart contract, you don’t need a third party to perform credible transactions. And because these smart contracts live on blockchain technology, they are trackable and irreversible.
A new era of computer programming, digital ownership, and other innovations are being introduced thanks to the smart contract capabilities of Ethereum.
You understand -- Ethereum is the future. But is Ethereum a good investment only because it innovates? Not necessarily.
So here they are, the reasons why Ethereum is a good investment for the future.
Reasons Why Ethereum Is a Good Investment
Ethereum is new. It came out in 2016. It has bugs here and there, sure. But for people who are willing to be involved and try this new technology it can prove quite profitable.
1. Ethereum could be a world computer
The reason Ethereum gained such massive popularity and almost flipped places with Bitcoin in June 2017 is due to its ability to run smart contracts.
Ethereum is poised to usher in a new era of applications -- decentralized applications (dApps). These dApps could run and secure code that will help businesses perform better around the world. These dApps will run on Ethereum -- so it’s not too late to buy Ethereum and participate. Take, as an example, assets: homes, artwork, luxury cars, etc. Ethereum’s smart contracts can secure ownership of these items. Foreign investors and people around the world won’t need to run through the bureaucracy of foreign nations system in order to own a home or artwork in another country. They can use a smart contract built on Ethereum. And they can pay with Ethereum too.
Ethereum can run uncensorable apps
Censorship is a real issue in the modern world.
Facebook, Twitter, Youtube, Instagram, all of these companies reserve the right to delete, modify, or hide content. They often do.
Sometimes from specific countries upon receiving a request from a government official; sometimes from a company; sometimes even from their own management.
Perhaps you’re not worried about censorship. It’s a problem for other people, right?
2.Ethereum can help keep the free world remain informed because it is decentralized.
The information stored on the Ethereum blockchain (data, smart contracts, dApps) can’t be shut down by a government or agency and will remain alive and uncensorable for as long as Ethereum is alive -- which could be for a long, long time.
Keeping the people capable of making educated decisions is one of the many reasons why Ethereum is valuable. And now is the best time to buy Ethereum and prepare for the end of censorship.
3.Diversification. Bitcoin isn’t everything.
Ethereum’s technology and purpose are different than Bitcoin.
We know why Bitcoin is a good investment -- but why is Ethereum a good investment?
Bitcoin was initially meant to be a cryptocurrency -- emphasis on ‘currency.’ Ethereum is different and is intended to be a platform for smart contracts.
With Bitcoin, you can store value and pay for things. With Ethereum, you can program smart contracts, tokenize assets, and more.
Both can succeed. That’s why we diversify.
Stock brokers, traditional investors -- they all diversify. There’s no sense in buying only stock in Starbucks when Apple is just as fascinating. Both are very different. Both might be great investments.
Likewise, Bitcoin is great at being a store of value and a way to make payments across borders. But there’s no good way to create smart contracts on Bitcoin.
Ethereum is great at using smart contracts. It’s okay at being a payment system too, but it does not have the brand awareness and immutability of Bitcoin -- plus Bitcoin is truly scarce since it’s capped at 21 million coins -- while Ethereum is uncapped.
Buying both is good, solid diversification. This is why Ethereum is a good investment if you’re interested in investing in cryptocurrencies beyond Bitcoin.
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