Marc Serafino
You may have read that Ethereum has been growing at a faster rate than bitcoin and you may be wondering whether it could reach the price of bitcoin?
We can’t give you a simple “yes/no” answer, but we could help you realize where Ethereum is heading so you could decide for yourself whether you want to put money in it.
First, let me state this:
Ethereum will keep growing…
Many people agree there is a bright future ahead of Ethereum; and it’s not just individuals — the platform and its cryptocurrency got the support of some of the biggest companies out there. Among them are the likes of Microsoft, Toyota, Deloitte, Accenture, ING, J.P. Morgan, Merck and National Bank of Canada.
In March 2017, these companies along with blockchain startups and research groups have formed the Enterprise Ethereum Alliance (EEA) to coordinate the engineering of an open-source standard and private “permissioned” version of the Ethereum blockchain that can address the common interests of enterprises in banking, management, consulting, automotive, pharmaceutical, health, technology, mobile, entertainment, and other industries, while working with developers from the Ethereum ecosystem.
The fact that such an organization was formed around Ethereum speaks volumes, and has a lot to do with the platform’s ability to run apps on top of its blockchain — which is something the Bitcoin Network can’t do.
That ability has already been used to launch decentralized applications, such as:
- Digital signatures that ensure authenticity and proof of existence of documents – the Luxembourg Stock Exchange has developed such a system.
- Interactive grids for the Internet of Things (IoT), such as verification for physical assets utilizing Bluetooth and NFC chips – Slock.It is developing smart locks.
- Digital tokens pegged to fiat currencies – Spanish bank Santander is involved in such project.
- Improved digital rights management for music – Imogen Heap used the technology.
- Platforms for crowdfunding – the DAO (short for decentralized autonomous organization)
- Social media platforms with economic incentives – Backfeed and Akasha.
- Decentralized marketplaces for physical items, financial products or energy – FreeMyVunk, Etheropt, and TransActive Grid.
- Mobile payments services for foreign workers – Everex
- Authentication of users and managing the billing process through smart contracts – RWE car charging.
And the ecosystem has just started, with new applications popping up on a daily basis (almost). Also, it is worth noting that we are still not that close to seeing these apps being adopted by a mainstream consumer, though that could happen in a year or so.
Meanwhile, businesses are exploring the use of blockchain (and Ethereum) to improve their operations, all while speculators are riding the wave to keep the market for Ethereum liquid and, well, volatile. Despite its meteoric rise, ether is as volatile as bitcoin, if not more. This, on the other hand, presents an opportunity for those looking to make money by investing in Ethereum.
But it won’t reach the price of Bitcoin that easily!
Simply put, bitcoin is a limited commodity and there won’t be more than 21 million bitcoins issued; the situation is different with Ethereum — it doesn’t have such limitations. And because of its limited availability, for the time being – bitcoin will most likely be valued more than ether.
On the other hand, the capitalization of Ethereum may surpass the capitalization of Bitcoin. In other words, the total sum of all ether coins may/will be worth more than sum of all bitcoins. This will most likely mean that there are many more ether coins on the market than bitcoins.
That being said, we still think that putting your money in Ethereum is a good investment (check out disclaimer at the end of this article), but it is best for those who are patient enough to hold their ether coins, rather than sell them off.
Conclusion
We have read some predictions arguing that ether will be worth more than bitcoin, but we don’t buy it. Perhaps we’re wrong, but we can’t imagine bitcoin losing its crown that easily despite Ethereum’s momentum.
We are strong believers in Ethereum and we are actually walking the talk, all while fully realizing that buying ether is an investment and comes with a risk.
Now let me add our disclosure: this article should not be considered as an investment advice, and we expressly disclaim any liability, including in respect of direct, indirect or consequential loss or damage.
It’s your money so you should be the one deciding whether you want to put it in Ethereum or… miss out on the opportunity. 😉
