Ethereum has been performing really well as a cryptocurrency in the past few months. The number of trading platforms offering Ethereum as an option is increasing due to increased demand among the traders. The volatility associated with Ethereum has been one of the major factors driving the cryptocurrency’s demand. But, what is more interesting is the fact that Ethereum is not a digital currency like Bitcoin or Litecoin or even Dogecoin. The whole purpose behind Ethereum is completely different from the other coins.
The inherent difference between Ethereum and other digital currencies that are considered as a store of value, e.g. Bitcoin, Litecoin etc. makes the comparison between Ethereum and gold highly unconventional. Ethereum (Ether) was originally created as a crypto-token for transferring value within the Ethereum protocol. The main reason behind the usage of ether was to make small payments within the blockchain based applications, which can also be used as a rewarding mechanism for those who contribute the processing power to maintain the Ethereum network. However, things started going haywire soon after the platform decided to raise funds by holding a crowdsale, or an initial coin offering. As a part of the crowdsale, Ethereum sold pre-released ether to raise as much as $12 million, which was a good intention, given that the Ethereum foundation needed money for further development.
As the platform grew, people started realizing the potential of Ethereum and started trading it against other digital currencies. Initially, the traders were either developers working on Ethereum related Dapps or technophiles who are curious about the platform. But then it all changed after regular crypto-traders entered the game. The sudden increase in demand led to a surge in Ethereum’s value, making it one of the most sought-after cryptocurrency.
Bitcoin and gold are compared to ideal money due to their inherent […]
