Blockchain -Why Ethereum Is Still Epic.
Ethereum like all coins is currently not only in a bear market (downward trajectory) but being sidelined as another altcoin with nothing on Bitcoin (which to is looking bad). Let me explain why i believe this to be wrong.
Firstly we will consider the clusterfuck that has been cryptocurrency recently.
As you know Bitcoin and altcoins had a major boom around December/January, in a world of enthusiasm and marketing, it was deemed the greatest thing since slice bread because literally everyone was going to be a millionaire. Then it crashed. At $19000 it plummeted, despite many people saying it’ll be worth $50000 by the week after. This has stung people who jumped on the bandwagon without knowing what they were doing. Here’s a tip: only invest in something you can see the merits in as a thing. Don’t invest upon predictions or trajectory. Warren Buffet invests in companies he can see to be good, sound companies. He see’s the merits in the thing. He doesn’t invest in stuff he doesn’t understand and it is why I only invested in Ethereum.
Ethereum is a basis of what are DAPPS. These are programs which will be the backbone of the internet in a few years to come. It’s sort of like investing in online commerce (Amazon) in 1995. But how?
Blockchain technology is a revolution in online transaction efficiency and security. It mainly runs off Ethereum. The internet is basically transactions. From opinions, to money, to gaming. Job done.
ICO’s are basically coins for financing DAPPS, you can buy a share in the DAPP, or own a share in the oil it runs off.
Anyway; Here is someone who explains Ethereum’s situation better than i do:
Ethereum is the most popular system with banks, favoured by the likes of HSBC, JP Morgan, Banco Santander, ING, Bank of Canada and Barclays for their blockchain based security and efficiency systems. Blockchain is currently a big buzzword in Banking.
There is no cap on Ether (the coin that powers Ethereum), it can go on forever unlike bitcoin which relies on scarcity.
Ethereum has competitors but they are miles behind. Ethereum has the largest marketshare for DAPPS.
Ethereum is in cahoots with big business. As well as the banking sector it is being developed and used by companies such as Samsung, Toyota Research Institute, Intel, Microsoft etc.
Ether is used on every transaction on Ethereum. So every smart contract on Ethereum uses Ether. The more popular it is, the more valuable the ether to create the smart contracts/DAPPs. So square that to the proof of stake creation and there’s the value. The higher the demand over the speed it can be created, then technically the higher the value of Ether – the bigger the blockhain internet expands etc. Forgetting investor speculation for a minute.
Anyway: Don’t fret about your Ethereum investment in the long term, it’s probably better than investing in General Electric or Microsoft.