The Bitcoin rush of the past few weeks has overshadowed the rise of the number two in the market—and wrongly so. Ethereum, the cryptocurrency from Switzerland, is also showing breathtaking growth. According to experts, Bitcoin’s little brother has a lot of upside potential.
Since the beginning of the year, the share price has already risen by an incredible 4000 percent—from eight to 330 dollars. Parallel to the Bitcoin rally that started off in August, Ether has experienced an almost similar strong increase.
Ethereum continues to challenge the dominance of Bitcoin. Since its creation, Ethereum has been regarded as the most promising bitcoin competitor. This has everything to do with its developer, Vitalik Buterin. The founder of Ethereum was already one of the leading figures in the Bitcoin scene at the age of 19.
Ethereum has a huge upside potential
Vitalik Buterin came to the conclusion that the technological uses of digital currencies had to be extended substantially. When the Bitcoin development team did not go along with his vision, Vitalik designed Ethereum, a cryptocurrency with an integrated platform that can use blockchains to record and transfer all kinds of value.
The reason that Ethereum has become increasingly popular, is because ether is considered a highly promising alternative to bitcoin. For beginners, Bitcoin has meanwhile become too expensive, and they prefer to go for an altcoin that’s ten times cheaper and that comes in second place in terms of market capital.
As a cryptocurrency, Ethereum is a highly speculative investment similar to Bitcoin, whose recent price gain has baffled market observers time and time again. While Ether is still a little far from its record high in March, experts say that in all likelihood the cryptocurrency will set new records. It can easily hit the $1,000 mark.
Support from large corporations
Even if the Bitcoin rally continues—many market observers believe that a value of $10,000 could be reached at years end—there are other reasons for Ethereum’s upward trend. Vitalik Buterin’s goal is to make Ethereum more technically accessible and flexible than Bitcoin.
This speaks in favor of Ethereum, which benefits from the increasing number of ICOs for example—the abbreviation stands for crowd-based IPOs via cryptocurrency. Many investors who want to invest money in a company through an ICO, demand the opportunity to do this in Ether. This is why many companies that are looking for investors in cryptocurrencies offer this option.
Thanks to its block chain platform, Ethereum also receives a lot of support from well-known large corporations. Through the Enterprise Ethereum Alliance, ETH gets more and more support from financial and tech companies such as Intel, JPMorgan Chase, and Toyota.
Greater technical flexibility
Greater technical flexibility also pays off when it comes to transactions. The fact that their number is limited and already too slow for many requirements is one of the biggest problems of Bitcoin. Ethereum has already outstripped Bitcoin several times in numbers of daily transactions. For the first time the number two carried out more transactions in one day than Bitcoin ever did within 24 hours. You can easily check the number of daily transactions for cryptocurrencies on Bitinfocharts.
However, technical flexibility also comes with risk. Ethereum had to go through a “hard fork” four times like Bitcoin on August 1—a hard split of the blockchain, which is then written in two different chains.