Bitcoin is still the top cryptocurrency, and it has had a great run at the peak of the industry. But, some cracks are starting to show for the number one cryptocurrency. There are a few reasons why Bitcoin might lose its place as the leading blockchain network and why Ethereum might take its place.
Here are some of the most compelling arguments that Ethereum could be the next Bitcoin, and why now may well be the best time to buy Ethereum. If, of course, you are ready to take on the risk.
Bitcoin is Struggling
The price ride from just cents a few years ago to the epic prices we see today has been one of the great technological and investment stories of the last decade. But this epic run seems to be losing a bit of its steam.
Bitcoin popularity has grown the network to the point where it can no longer function properly. Network congestion has pushed transaction prices higher than any other cryptocurrency and at one point over $50, hovering around $1-$3 for most of 2018. This also means many Bitcoin users are having trouble getting their transactions confirmed.
There are also problems with mining and centralization because of the consensus algorithm on the Bitcoin network. This has led to problems in the community too. As a decentralized network, it’s very difficult to solve problems like these once design decisions have been made.
The Ethereum network was designed and launched years after the Bitcoin network became popular. The founders had an opportunity to learn from the mistakes of Bitcoin. Ethereum has been able to make better design choices, such as:
- A more centralization-resistant mining algorithm;
- A formal organization to help steer the project;
- Better prospects for scalability.
It’s a Complete Platform
Ethereum has one major edge over Bitcoin: it’s a much more complete platform. Ethereum takes the revolutionary ideas thought up in the original Bitcoin whitepaper and makes them even more powerful. Ethereum can do much more than just transactions.
With its built-in Turing complete programming language, Ethereum has brought us the concept of smart contracts. These are self-executing contracts that can form the basis for all sorts of decentralized applications. For this reason, Ethereum won’t just be the next Bitcoin, it’s the next evolution of blockchain technology.
Dips Are a Buying Opportunity
The cryptocurrency market has been experiencing an extended recession for the first half of 2018. This is worrying for many reasons, but any experienced trader will tell you that dips sometimes make great buying opportunities.
The goal of profiting from trading is to buy low, sell high. When thought about like this, dips in price seem like a good chance to get hold of some discount crypto. If, of course, you think the price is going to go back up in the long term. The Ethereum price has taken a serious beating this year, but many in the industry are confident that growth will return. Those that bought Bitcoin after the 2013-14 Bitcoin crash were getting prices of $200-$500. Those prices seem ridiculously low today.
Just remember, cryptocurrencies are still a hugely risky investment. Only invest what you can afford to lose.
It’s Easy to Buy on Exchanges
As one of the top two cryptocurrencies, Ethereum is easy to buy and sell. Ethereum trading has excellent volume and liquidity for the cryptocurrency market, and there are also plenty of trading tools available to make the process easier and safer.
Exchanges like CEX.IO allow you to buy Ethereum easily. You can often have some in your wallet within minutes. You can use tools like market orders and limit orders to buy and sell Ethereum automatically when the price reaches your targets. High liquidity means it will be easy to cash out if things don’t go your way.
Scaling is Likely Around the Corner
In terms of scaling, Ethereum is a little better than Bitcoin, but it still hasn’t solved the problem once and for all. This is one of the main factors holding Ethereum back from becoming a major global platform.
But, there are many solutions in the pipeline that look likely to fix these issues soon. Sharding, Plasma, and Raiden are all different solutions that could make Ethereum orders of magnitude faster than it is now. What’s even better is that these scaling solutions can be added one on top of the other, possibly multiplying scalability by thousands of times.
When (or if) Ethereum does finally prove it can scale, the price will receive a huge boost.
It’s Still the Go-To Platform for ICOs
Probably Ethereum’s most important contribution to the blockchain economy so far is ICOs. Ethereum has hosted thousands of ICOs, and each one gets more entrepreneurs, developers, and investors willing to apply for Ethereum. It will be difficult for another platform to overcome this momentum.
Big Backers Are Getting On Board
Huge enterprises like Microsoft and JP Morgan have formed the Ethereum Enterprise Alliance to support the development of Ethereum as a global decentralized computer. This alliance will help to define business and financial standards for enterprises that might further use Ethereum in the business world.
Airdrops – Free Stuff!
Lastly, anyone holding Ethereum tokens is eligible to token airdrops. Airdrops are basically free token giveaways by new blockchain projects. You’ll usually have to do something, like sign up for an email list or fill in a telegram form, and then you’ll get free tokens straight to your Ethereum wallet.
No, this isn’t a scam, just many projects these days realized that their tokens become more valuable the more people have them. So they like to give a bunch out for free to kick things off! The earlier you get your Ethereum, the more free tokens you’ll get. Watch out, though, anyone who asks for your private key IS trying to scam you. Stay away from these.
Risk and Reward
The potential payoff for an investment is usually determined by the risk you take on, and, right now, Ethereum seems like a good bet. It’s a proven technology with major advancements coming soon that could thrust it to the top of the cryptocurrency ladder. Keep in mind, anything can still happen. Invest sensibly!