While most investors around the world are focusing on Bitcoin, this cryptocurrency is slowly dominating the market share. (Image: Reuters)
Virtual currencies have sparked the imagination of investors around the world for the past few weeks or so. However, due to their volatility, among other things, they have even aroused fear and confused the rest of us. Bitcoin in particular has sparked the imagination of investors and, in its dominance in the cryptocurrency market, seemed unassailable as it established itself as the first digital currency in the mainstream. However, since then, many other cryptocurrencies have appeared in the market, each of which vies with the other for supremacy. Ethereum is the other emerging star in this space. It has emerged as the second largest digital currency in just over two years. While most investors around the world are focusing on Bitcoin, Ether is slowly dominating the market share.
What is ethereum
Ether (Ethereum currency) was introduced in 2015 and has grown more than 6,800 percent since the beginning of 2017. After Bitcoin, Ether runs on Ethereum blockchain technology, which was first described by the then 19-year-old Bitcoin programmer Vitalik Buterin in 2013. The total value of all ethers in circulation is now $ 46 billion at $ 480 per coin versus $ 180 billion worth $ 10,000 for bitcoin. Ether is up more than 5,000 percent since the beginning of the year. It is the second largest cryptocurrency after Bitcoin, with a market capitalization of more than $ 40 billion.
Rise of the cryptocurrency
The rise of this alternative asset class is fascinating indeed, given that it was not even a decade since Bitcoin existed in 2009. There are now at least more than 1,000 active virtual currencies. The organic nature of the currency and the fact that it is not issued by any central authority – some believe it may be immune to government interference or tampering – makes it a seductive alternative to mainstream currency. Jen-Hsun Huang, CEO of Nvidia Corporation, recently said that cryptocurrency and blockchain will stay. “It gets pretty big over time. It is very clear that new currencies are coming, ”said the CEO of the company that manufactures core processors and graphics processors for gaming devices and the professional market.
Blockchain is like a digital ledger in which transactions in Bitcoin or another cryptocurrency are chronologically and publicly recorded. The cryptocurrency market has seen a lot of activity, with the prominent currencies seeing huge gains.
However, not all are optimistic about the future prospects of cryptocurrencies. In fact, Lisa Su, CEO of AMD (Advanced Micro Devices, Inc) from the same semiconductor division, said that cryptocurrencies will not be a long-term growth driver for the company.
Bitcoin hit the $ 11,000 mark for the first time on Wednesday, rising 900 percent this year alone. Following this, renowned hedge fund manager Michael Novogratz had set a target of $ 40,000 for the cryptocurrency by the end of 2018, although regulators stayed on the sidelines given the rapid rise in value and the hot air that built up around them.
However, legendary investor Warren Buffett had said in a 2014 interview with CNBC that Bitcoin was a “mirage” and added that investors “should stay away from it.” In the same interview, Warren Buffett said, “It’s a method of transferring money. It’s a very effective way of transferring money, and you can do it anonymously and so on. A check is also a way to transfer money. Are Checks Worth A Lot Just Because They Can Transfer Money? … The idea that they have enormous intrinsic value is just a joke in my opinion. “Warren Buffett reiterated his belief in Bitcoins and cryptocurrencies and told Marketwatch in October of this year:” You cannot value Bitcoin because it is not a value-producing one Asset is ”, adding that it is a“ real bubble of its kind ”.
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