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The crypto surge that is being witnessed globally is no longer exclusively driven by the Bitcoin craze. We can see the top #2 currency by market cap, Ethereum (ETH), one of the top cryptocurrencies grabbing eyeballs and market share very steadily. Ethereum wins on several parameters in the Ethereum vs Bitcoin debate. Ethereum or Ether is fast gaming momentum in India as well, where the exchange ratio is 1 ETH to INR 40k (approx.) currently.
More and more people want to invest in Ethereum due to the additional benefits it provides. Its price has been stable recently, and it is a usable cryptocurrency like Bitcoin. Popular cryptocurrency trading platforms like WazirX support the trading, buying, and selling of Ether. Ethereum can be purchased via debit, and credit cards, and even UPI as well. Currently, over 100 million Ether tokens are in circulation.
Vitalik Buterin proposed the Ethereum Network in 2013. In 2014, the development costs were funded by Vitalik and his supporters via a crowd sale. For every Bitcoin contributed, a total of 2000 Ethers were offered. Finally, 2015 saw the launch of the Ethereum Blockchain.
The price of ETH surpassed the $500 mark in 2018, and since then, it has risen above the $580 mark and almost touched the $600 mark in December 2020. The daily gas usage or transaction fees of Ether has also seen some fresh all-time highs. Higher gas usage means higher on-chain user activity.
Let’s find out why the Ethereum network is gaining popularity among crypto traders and investors.
Superior Technology
Ethereum is not just a digital currency but a blockchain-based platform with varied aspects and scope. It can be used to create new coins, unique contracts, and new applications like the game Etheria stored on Ether’s Blockchain. The code powering Ethereum – Solidity, known to be Turing-complete, helps run any program or smart contract having the most complex computational equations.
Ethereum’s EVM (Ethereum Virtual Machine) is a smart contract using Ether (Ethereum’s currency) for peer-to-peer contracts. Ether is stored in an Ethereum wallet and other cryptocurrencies, which also supports ‘smart contracts.’ Ethereum has been described as “a single shard computer run by the network of users and on which resources are parcelled out and paid for by ether” by the New York Times.
The launch of Ethereum 2.0 is highly anticipated. There are several updates lined up for Ethereum’s network:
- Plasma/Raiden: This would help in making the transactions faster and cheaper over the ETH network.
- Casper: This update would move the Ether blockchain to a better proof of consensus – from PoW (Proof of Work) to PoS (Proof of Stake)
- ZK-Snarks: An idea is being actively worked upon to make ETH anonymous.
- Shards: This would help in increasing the scalability of the ETH network.
Tokenization via ETH Network
Digital tokens used to represent virtual shares and proof of ownership, among others, can be created on the Ethereum network. These digital tokens perform several functions, such as raising funds, representing shares, and forms of voting. The speed and agility inherent in Ethereum’s blockchain attract many companies and organizations. Being an open-sourced and decentralized platform, Ethereum removes t third party’s need like a lawyer or any legal intermediary to complete any legal document.
Investors who want to invest in an ICO (Initial Coin Offering), or hold any ERC-20 token, need an Ethereum-based wallet. Out of the top 100 cryptocurrencies by market cap, Ethereum-based tokens form a majority. As such, with the growth of such cryptos and the entire market, ether would gain momentum on its own.
Faster Block Time for Greater Security
Ethereum’s GHOST protocol is lightning fast, with an average block time of just 12 seconds compared to 10 minutes as Bitcoin’s average block time. This implies faster confirmations, which of course, means better adoption potential.
The associated costs are also toned down due to the speed. Ethereum’s smart contracts use blockchain stored applications for negotiating and facilitating contracts. This decentralized network makes any fraud or censorship a rarity.
Institutional Backing
The Enterprise Ethereum Alliance is the largest open-source alliance in the world. This alliance includes Major Fortune 500 companies, academics, startups, and technology vendors.
There are more than 180 members in the alliance, including JP Morgan, Microsoft, Mastercard, ING, and other such industry leaders. The alliance was built with the main objective of creating Enterprise-grade software by using the Ethereum blockchain. The software so developed would be able to handle the most complex and demanding business applications.
General Consensus and active developers
The developers, miners, and traders of Ethereum are quite active and gather regularly to talk about the latest development and future possibilities of the Ethereum Network. The Ethereum community worldwide works much more closely via consensus, unlike Bitcoin that keeps forking because of a lack of broad consensus in the community. A lot of forces are working globally in coordination to make Ethereum better.
Ethereum, along with other cryptocurrencies, possesses the capability of transforming the industries in the future. It is a relatively new token as compared to Bitcoin, that was launched way back in 2009. Its popularity continues to grow and would be an obvious choice for any crypto trader who loves cryptocurrencies and is aware of them beyond Bitcoin.
Along with Ether’s rising demand, its price will continue to grow along in the future. As an informed investor, do take note of the necessary things before you start your Ethereum to INR relationship.
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Is Ethereum Safe To Invest?
The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.
How To Invest In Cryptocurrency?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.
What Is The Safest Cryptocurrency To Invest In?
Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.
How Safe Are Cryptocurrencies?
Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed.There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.
Who Invented Cryptocurrency?
Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.
How To Invest In Cryptocurrency In India?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.
Are Cryptocurrencies Legal In India?
In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.
Is Cryptocurrency Banned In India?
No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.
What Is Virtual Currency?
Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.
Can I Invest In Cryptocurrency?
Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
