Ethereum is an open-source, public, blockchain-based distributed computing platform that uses Ether to facilitate smart contracts and decentralized applications. It was created by VitalikButerin in 2015. Ethereum can be used as a token of value for transactions on the Ethereum network, or it can be used to build Decentralized Autonomous Organizations (DAOs). This article will go over few benefits for investing in Ethereum to get your answer of should I buy ethereum at Uphold.
1. The Market is Growing
A growing market means the demand for a product or service increases. In this case, it’s Ether, which can be used as a currency to make transactions on the Ethereum network and build DAOs.
The market cap for Ethereum increased from $700 million in January 2016 to $100 billion at the beginning of 2018, so it has already seen an increase in value within 18 months! This growth shows there’s still plenty of room for upward movement in price over time. If users want ether, they will need to buy coins off exchanges using fiat currencies like dollars or euros then trade their coins into ETH via cryptocurrency exchanges that accept these fiat currencies.
2. Ethereum was named Coin of the Year in 2016
Ether is a cryptocurrency that can be used to make transactions. It’s like Bitcoin because it uses blockchain technology, but Ethereum allows for more than just digital currency transfers; developers can use its platform-specific cryptographic token (called Ether) to run applications and monetize work by rewarding users with coins.
3. Ethereum is Backed by Corporations
Ether has seen increasing levels of adoption since its creation in 2015, with more than 80 companies have joined the Ethereum Enterprise Alliance (EEA) in May 201, according to Reuters. A further 86 members were announced in October 2017, including Mastercard and Cisco Systems. The growth of the EEA shows that corporations are taking note of blockchain technology and want to be involved during this early stage when it’s still developing; they see the potential for ETH as an investment opportunity that benefits their company too!
4. Ethereum is More Flexible
Ether can be transferred between accounts and used to compensate participant mining nodes for computations performed. Ethereum also provides a decentralized virtual machine.
This flexibility means that developers aren’t limited by what they build on top of Ether; they can use it however they want without worrying about needing permission from regulators if their idea works!
5. Ethereum is More Secure
The Ethereum Virtual Machine (EVM) executes scripts using an international network of public nodes or all the computers on one’s computer as miners with equal standing in securing transactions. This security means that developers don’t have to worry about regulatory requirements when building new products; they know their idea will work because it runs via Ether!
6. Ethereum is Fraud-Proof
Nobody can charge you money or make a transaction on your behalf without your permission. If someone does try to submit an incorrect payment, it will be rejected by other nodes in the network, and Ether won’t change hands – so there’s no danger of being charged for something you didn’t receive!
If a bad actor tries to create counterfeit ETH coins, they’ll have to circumvent all the security measures built into Ethereum, which would require immense resource allocation, making this kind of attack extremely difficult and expensive. In fact, over time, as more users join the Ethereum blockchain, it becomes exponentially harder because each user adds their computer power towards validating transactions that happen along the microeconomy running through Ether.
7. Ethereum is Interoperable with Other Blockchains
Ether can be transferred between accounts .As a result, many blockchain-based projects are developing apps that utilize both the advantages offered by individual blockchains and those that exist across multiple chains working together simultaneously, such as cryptocurrency exchanges like 0x. Developers no longer need to create entirely new cryptocurrencies or blockchains to support their product since they can tap into the existing ecosystem of Ethereum and build upon its already established value!
8. Ethereum is Free to Use
Unlike many other cryptocurrencies, Ethereum (more info) doesn’t charge any transaction fees for sending Ether between users – although the miners can set their fee threshold if they want. This means that developers building apps don’t need to worry about having enough money in their ETH wallet or passing over too much of it as part of payment; there’s no barrier because transactions are free.