The Bitcoin is undoubtedly one of the most famous cryptomonas the world. If you follow our blog, you know that there are digital currencies similar to bitcoin. One of them is Ethereum.
We will explain to you what is Ethereum, how much is that currency worth, what are the differences in relation to Bitcoin and what is the investor profile indicated to apply in this cryptocurrency. Follow below!
What is Ethereum?
The Ethereum actually is an online platform that enables the implementation of decentralized applications ( dapps ) and contracts smart ( smart contracts).
All applications, executed codes, transactions and any other activity that is done within the Ethereum platform, are paid with their own digital currency, known as Ether (ETH).
How does the platform work?
Anyone can upload applications or contracts on this network, since it is possible to write code in several programming languages. The codes can be represented on Ethereum as long as they are in a programming language accepted by the platform.
By uploading the code on the platform and filling in the variables, the tool itself converts the program into machine language (in bytecode) and, after being mined, it can be executed.
After this procedure, the contract will be stored in Blockchain technology, where it is possible to store information related to transactions, such as an “accounting book”.
Other people will be able to access it through the platform or using the API (Application Programming Interface or Application Programming Interface).
It is also very important to note that, on the platform, you do not need to rely on a bank or other central authority with the intention of storing financial data.
This is because the tool allows your identity, personal information and funds to be under your control at all times. In addition, all of your applications are shielded from hacker cyber attacks.
Who created Ethereum?
Vittalik Buterin, who created the platform in 2015, has dual nationality: he was born in Russia and was naturalized Canadian. He was studying Computer Science at the University of Waterloo, Canada.
However, he chose to abandon the course after receiving US $ 100 thousand (which is equivalent to R $ 394 thousand) for the Ethereum project and, since then, started to dedicate himself exclusively to it.
Vitalik is also the founder of Bitcoin Magazine, created in May 2012. It was the first magazine on the subject and, currently, it is one of the most renowned in the market. He got to know this cryptocurrency through his father, Dimitri Buterin, who was already trained in computer science.
Nor did Vitalik accurately realize the potential of the project, which initially dealt only with simple applications. However, as time went on, he saw the full potential of the project more clearly.
The platform started operating on the market on July 30, 2015 and has since become the second largest cryptocurrency in the world, second only to Bitcoin.
How much is Ether worth?
As we have already highlighted in this article, Ether is one of the most valuable cryptocurrencies on the market. In a consultation held on June 4, 2019, it was worth the equivalent of R $ 916.74. It is really possible to profit by investing in it, isn't it?
What are the differences from Bitcoin?
The main difference is that, through Ethereum, it is possible to perform more tasks. After all, Bitcoin was created with the intention of being a decentralized currency, which would serve as an alternative to the currencies available in the financial market and banking systems.
Both tools are based on Blockchain and count as their own currency, that is, it is possible to use them as virtual money. However, Ethereum can be used as support for any application. In addition, it is possible to upload data to the Blockchain, a practice known as “mining”.
All of these characteristics are fundamental, especially for developers who work with software development or data analysis.
Who can invest in Ethereum?
As we explained earlier, digital currencies represent a type of investment in variable income, that is, the investor's earnings can vary widely depending on market conditions.
Therefore, this financial application is indicated for investors who are not afraid to take risks and who already have a more daring investor profile.
On the other hand, this application is not suitable for conservative investors or people who are building their emergency reserve. This is because the person can lose their savings quickly and, consequently, go through financial difficulties.
What are the alternatives for those who do not want to invest in Ethereum?
Those who do not wish to take risks in variable income investments can opt for fixed income investments.
Among them are Tesouro Direto and CDBs (Bank Deposit Certificates). In these applications, the investor lends his capital to the government and banking institutions, respectively. In exchange for this, the person receives the invested capital plus the agreed interest.
These applications are considered safer due to the fact that they do not undergo major fluctuations, in addition to their predictable profitability. The Selic Treasury, for example, is one of the most conservative options and offers an annual gain of 6.5%.
Ethereum is one of the main cryptocurrencies in the world and offers several advantages. Among them are data encryption, which guarantees information security, the possibility of writing codes in different languages, the possibility of making investments, etc.
However, it is necessary to check your investor profile before directing your capital to investments in digital currencies!
Now that you know what Ethereum is, get to know the main cryptocurrencies on the market and the particularities of each one.