Why is Ethereum One of the Most Sought-After Cryptocurrencies?

Cryptocurrencies wear the technological crown of innovation in the 21st century. It has a robust underlying technology, blockchain, that ensures security, speed, accessibility, and scalability that was impossible before. Ethereum

Satoshi Nakamoto introduced Bitcoin as the pioneer cryptocurrency back in 2009. Since then, Bitcoin has been slowly but constantly climbing up in terms of value and popularity.

Then came the pandemic in 2019 that proved a blessing for cryptocurrencies like Bitcoin. These last couple of years brought cryptocurrencies into the limelight and shot their value through the roof.

Today Bitcoin has a market cap of over $400 billion – the total market cap of cryptocurrencies now crosses $2 trillion.

Carl Runefelt is a global crypto leader and social icon who has invested in more than 360 crypto startups. He is a strong proponent of Bitcoin and believes that it will eventually replace traditional fiat currency in the future.

While speaking on his YouTube channel, “The Moon” he says, “I am very confident that Bitcoin is a very good investment. I believe that Bitcoin is not only going to go to $500,000, I think that Bitcoin is gonna go to five million dollars per Bitcoin in today’s money. Obviously, with inflation, it could go to trillions of dollars per Bitcoin because it is inevitable – the dollar will collapse at some point.”

Ethereum Steps In

Bitcoin is the undisputed king of cryptocurrencies for over a decade but do you know who is catching up to it?

That’s Ethereum (ETH)!

Ethereum is the second largest cryptocurrency with a market cap of almost $200 billion – it will soon be in touching distance from Bitcoin.

But how is it doing this?

Fundamentally, ETH and BTC are similar to each other; both are cryptocurrencies that you can trade to make profits, use as a mode of payment, and can store in your crypto wallet.

But there are major distinctions between the two. Although both are digital currencies, Bitcoin has its limitations. Bitcoin is a store of value and can be used as payment but this is where Ethereum refuses to hold itself.

Ethereum is not just a typical cryptocurrency but offers some innovations like smart contracts, decentralized applications, and the concept of proof of stake (without downtime, fraud, or interference from a third party).

It is because of these unique innovations ETH has been getting massive responses from its users and investors. Over it is getting prominent for the following purposes now:

  • You can trade Ethereum as a digital currency on numerous exchange platforms
  • And you can invest in Ethereum as an investment and hold to make profits
  • You can pay for services and goods in Ethereum to countless businesses as a form of payment
  • You can also pay your transaction fees with Ethereum as well
  • Make use of its unique capabilities and functions

Carl Runefelt confirms that Ethereum is an excellent investment to make profits and diversify your portfolio as well. In one of his interviews, he informed, “I had gotten some nice profits from my Ethereum holdings for a long time. I have been holding Ethereum for multiple years.”

What’s Making ETH So Popular?

Although both, Bitcoin and Ethereum, are blockchain operated and employ the principles of cryptography and distributed ledger on the blockchain network, there is another set of few differences as well:

  • The ETH transactions have executable codes
  • The data affixed to the Bitcoin network is merely utilized to record transaction information
  • The block time of an Ethereum transaction is completed in mere seconds
  • Bitcoin has to take minutes to complete the same
  • Ethereum uses the LMDGhost algorithm
  • Bitcoin uses the SHA-256 algorithm
  • Bitcoin uses proof of work –  highly energy-intensive because of the computational power required
  • Ethereum has upgraded to another level; proof of stake –  less energy-intensive. Essentially it replaces miners with validators

These differences confirm the superiority of Ethereum over Bitcoin. At the same time, it reveals what ETH has in mind: Ethereum not only wants to surpass Bitcoin to become an alternate monetary system of the world but to facilitate the operations of smart contracts, dApps, and other prominent blockchain solutions.

As the popularity of dApps, smart contracts, DeFi, and NFTs continue to grow, Ethereum is getting more and more relevant – yes, more relevant than Bitcoin. No wonder, it is expected to outshine Bitcoin in the future and finally claim the crypto throne for itself.

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