Much like with bitcoin, you have the option of investing with Ethereum. This is because Ethereum saves all of the transactions on new blocks so they can be accessed later. But, when using Ethereum, there are going to be some differences from bitcoin that many users are not going to be used to since they are coming from the bitcoin platform.
Some people wonder if Ethereum has the power to surpass bitcoin due to the different platforms, new developments, and other advances that Ethereum is coming up with, it is a possibility. But, it does have some of the protocols that bitcoin follows such as investing so that you can access various cryptocurrencies like Ethereum in order to exchange them.
If Ethereum follows some of the protocol from bitcoin, what makes it so different? Well, Ethereum is a decentralized platform that is going to enable applications to run autonomously while lowering the risk of third party interferences and fraud. In the end, this means that whenever you are investing with Ethereum, you are not going to be restrained by the platform which is what you are going to see if you use platforms like bitcoin.
Before you take the leap and start investing with Ethereum, you have to know how the platform works. Ethereum works with contracts so that values are unlocked in order for various conditions to be met. For example, if there is a user who wants a website to be designed, they are going to make a contract with everything they want to see in the website so that user b is not shocked if they do not get paid because they did not meet all of the conditions set forth in their contract.
After the conditions are fully met, they are going to be rewarded with ether for the work that they did. This payment is going to be sent out once the work is completed which eliminates the need for a second transaction to be completed. If you own a program, you can transfer the ownership of that program to a different person inside of the blockchain. You are also going to use a contract for this.
The transactions that are done on Ethereum are going to go through the autonomous agent. The autonomous agent is a program that allows the transactions to be completed without the need for a human to watch over them. This is similar to cloud services that can expand depending on the user and the services that they are paying for from that program.
Being that you now understand how Ethereum works, you can now understand the investment side of the program. The cryptocurrency that you are going to be using is known as ether. Ether is used when you have to make a payment or are receiving a payment for the completion of a contract. Ether is also going to validate any transactions while synchronizing the new transactions with other parts of the network so everything is up to date.
The distribution of ether started in August of 2015 during a crowdfunded campaign that went for forty-two days. There were about sixty million dollars in ether given to the users and eighteen million was raised for the further development of Ethereum. This was one of the biggest crowd-funded campaigns in history.
There are a lot of investment opportunities that you are going to be able to get into when you are using Ethereum. You have to look at each as well as assess the value of ether.
There has been a rise in crypto stock trade and there are some who believe that if your issue and trade stock on a blockchain platform, there is going to be a significant difference in the future. The reason for this is fairly simple, when trading stocks, there is a middleman to ensure that the trade is completed correctly.
But, with blockchain platforms, there is no need for the middleman to be there. Instead, the peer-to-peer trading of stocks is going to be completely free or fairly free which is going to give you a better margin for your trading. Along with offering an alternative way to trade, there are also more items that can be traded like decentralized applications, value tokens, or IP rights.
There is going to be an increase in the ecosystem. During the time of development, there were other projects that the developers were working on as they waited on the release of Ethereum. Some of these projects were Colony, Weifund, and Augur.
Augur was a DApp that assisted with the prediction of where the marketplace would move so that users could make informed trades depending on how the network was instead of relying on a central authority.
Our fund was also a DApp that was meant to assist in crowdfunding campaigns. Whenever Weifund was used, the user could manage their own campaign and look for other campaigns to donate to. Whenever you invest with crowdfunding campaigns, there are tokens or shares that you are going to get so that you can trade them on EtherEx.
The colony was a DApp that worked to create a decentralized organization. People from all over the world have the option to work together on projects that will give them rewards based on how they contribute to the organization.
How many transactions are completed is going to determine the price of ether due to the fact that the network nodes are going to be rewarding their users for validating those transactions. Ever since Ethereum was released, around 15,000 transactions are verified a day. With this occurring, it is expected that the number of transactions is going to continue to rise while the program develops and the ecosystem for DApps is going to be increased.
Ether has a market cap of one hundred and ninety million dollars. This means that the ether that is available is enough for the number of applications that are on the platform for a brief period of time. When you look at how high the market cap is, it seems high and ether declining seems like something that is never going to occur. But, when it comes to cryptocurrencies, there is speculation about how it is going to hold its value in the future. The value is an important value driver for the fundamental analysis of the current stage that the platform is in.
Inflationary design is going to be one of the final drivers for the value of how ether is going to be distributed. Whenever Buterin first started, there was a model for inflation. But, the new ether is distributed whenever a need arises. The background for this was that ether was going to be a product that could facilitate the transactions done on the network. But, if the price of ether gets too high, this is going to harm how efficient the program is.
Should this happen, then ether is not going to be an investment asset which is going to end up having the opposite effect on the future value of ether and its development. But, if you look at the policy that is in place for the distribution of ether, you are going to see that it is not going to be entirely clear on what is to happen if this event occurs. But, there are signs that indicate that inflation is going to be around two percent or vanish completely. Even though it is uncertain of its future, there are going to be risks that are going to always outweigh the value for various other drivers.
Here is how you are going to get started investing with Ethereum:
The very first thing that you are going to want to do is create an Ethereum wallet. This is where all of your ether is going to go so that you can receive or send out payments. However, whenever you look at Ethereum you are going to notice that a new concept is being developed, therefore, it is not a real wallet that is available for you to use that is going to be completely user-friendly.
But, the users of Ethereum discovered that it is easier to create an ether wallet by using an online wallet generator so that you can have a public and a private key that allows you to get into your wallet.
Programs such as My Ether Wallet enable you to print out your wallet and save it in a safe place such as a wall safe or the bank. This is an innovative idea that allowed for the JSON files to be downloaded so your wallet could be stored in multiple places.
At the point in time that a new transaction is created, you are going to have to put in the private key on the wallet website so that you can get into your wallet.
You are obviously going to want to put ether in your wallet and you can do this by buying ether or mining it. When you buy ether, you will want to use shapeshift.com. This site is user friendly and is not going to require that you register with them.
You have to make sure that you are choosing ether when you are setting your receive box. Here is where you are going to input the public address that you received from Ethereum.
Now you are going to check the balance in your wallet by going to View Wallet Details. You are going to have to put in your private key so that it knows that you are the one trying to access the wallet.
And that is how you are going to start investing with Ethereum!
