Why Ether is on Bitcoin’s Heels

Bitcoin has been the world’s most popular cryptocurrency for years. It is, at this point, nearly impossible to avoid hearing about bitcoin. However, other cryptocurrencies are quickly gaining ground on it – one of them being Ether. This blog post will discuss why you should pay attention to Ether and what makes it unique.

 

About Etherium

 

Ether is a cryptocurrency that serves a very different purpose than bitcoin. It’s better to think of it as fuel for a decentralized platform rather than an alternative currency. Ethereum was developed by Vitalik Buterin and went live in 2015 with about 12 million pre-mined coins (Ether). The price per coin started at $0.311 and rose to $19.42 by January 2017, making it the second-largest cryptocurrency behind bitcoin (with a current market cap of over $28 billion as of December 23rd, 2017).

 

Ether is used to “pay” for things within Ethereum’s platform, such as transaction fees or intelligent contract execution. Ether can be bought or sold using other cryptocurrencies or fiat currencies. It can also be used to “codify, decentralize, secure and trade just about anything.”

 

Ether is mined similarly to bitcoin. Ether mining uses proof-of-work, which makes it attractive for miners because there is no dedicated ASICs currently available on the market (and may never be due to the design of Ethereum). Ether is mined using graphics cards and general-purpose CPUs.

 

Ether can also be used as a “fuel” for other cryptocurrencies, such as Litecoin or Bitcoin Cash (to name two examples) that run on top of Ethereum’s blockchain. These tokens get their value from the network they’re built on.

 

Ether is traded on multiple exchanges, including Binance, Kraken, and Coinbase (to name a few). It can be bought with fiat currencies such as USD or EUR through online wallets like Coinbase or GDAX. Ether’s popularity has been increasing steadily since it launched in 2015 – but recently, there have been some significant developments that have helped boost its profile.

 

Bottom Line

 

Ether is on bitcoin’s heels for several reasons. Still, the two most prominent are: Ethereum has been used by many companies to launch new cryptocurrencies and raise money through issuing ICOs (initial coin offerings). Ether was added as the second cryptocurrency supported by Coinbase, behind only bitcoin. These both add significant value to ether in the eyes of investors.