In the constantly changing world of cryptocurrency, the one digital currency currently showing the most promise isn’t Bitcoin; it’s Ethereum.
Why Ethereum? The story goes way beyond price, but since it was first invented in 2015, Ethereum prices have gone up rapidly. At the start of 2018, during the big cryptocurrency boom, Ethereum prices were up over 45,000%.
Now, that was a bubble and prices have gone down since then, but one thing Ethereum has that Bitcoin doesn’t is a new level of stability. Some are saying that the way Ethereum prices have calmed down makes it a prime candidate to fulfill many of the reasons Bitcoin was invented in the first place.
What are some of those reasons?
1 Low Transaction Fees
When Bitcoin transactions fees were reaching twenty or thirty dollars, the idea that the cryptocurrency was meant to be a cheaper alternative to credit card fees or bank transactions was laughable. But that was one of the original motivating factors for creating Bitcoin.
Since then, cryptocurrencies across the board have managed to reduce their transaction fees (or at least the top markets).
2 Smart Contracts
When you’re talking about transferring hundreds of thousands of dollars, if you’re going to go outside of the banking system, you need a rock solid reason for doing so. It just so happens that Ethereum offers that.
Ethereum has become the cryptocurrency of choice for business looking to use smart contracts: a cryptocurrency-based way of fulfilling a business contract. When the terms of the contract have been met, funds are automatically transferred in cryptocurrency. That means no invoicing, no waiting for Accounts Receivable to send out the funds, the job gets done quickly, and everyone gets paid in a timely manner. It’s a system that’s great for freelancers, suppliers, and the people paying.
3 The Enterprise Ethereum Alliance
Ethereum is backed by a large number of Fortune 500 companies that think Ethereum could become a game-breaking business solution. Dozens of Fortune 500 banded together in early 2017 (long before the bubble) to collaborate on furthering Ethereum technology and making it part of their own practices. The list includes JPMorgan, BP, Thomson Reuters, and Microsoft. Today, there are over 200 members of the EEA.
These are not companies that take risks without dozens of higher-ups evaluating the pros and cons. They want to see Ethereum become a practical business solution that can save companies of their size and scale millions of dollars in the future. The big reason these companies want to see Ethereum succeed and become a mainstream digital currency is smart contracts. It’s an efficient way of transferring money, and for these companies, every efficiency they find is worth investing in.
If you’re an investor, click here to learn more about Ethereum, how to store, and why you should buy it. If you’re frightened away by the Bitcoin bubble, Ethereum could be the answer for you. It has a much lower price point and major companies take it more seriously as a practical P2P (or B2B) money transfer solution. The price stability can only help Ethereum grow.