Cryptocurrency experts are watching trends and predicting that 33% of millennials will be invested in some form of cryptocurrency by the end of the year. With the explosive growth of Bitcoin over the last year, it overshadowed the fact that
Ethereum grew at nearly the same rate. On top of that, shares of it are cheaper than Bitcoin by a huge margin.
If you're new to cryptocurrency, you should know that the system is different than any other currency. Investing in cryptocurrency is more like buying stocks than getting foreign currency at a currency exchange. Because there are few places it's accepted today, cryptocurrency is more of investment than anything else.
There are a few basic facts you should know before you get involved in the cryptocurrency. Here are 4 of the most important things to know about it.
1. It's More Than Cryptocurrency
Cryptocurrencies are functionally tied to blockchain code, connected to machines that "mine" them by accounting for every movement of every unit of the currency. Because of its connection to code, it can actually help developers of apps.
App developers can put their apps on the platform and use the blockchain technology to strengthen their own database and record making.
2. Banks Love It
Many banks are now testing their systems to be used with blockchain technology. During a recent test with major institutions like Barclays and HSBC, Microsoft was able to use Ethereum-based tech to make smarter contracts.
If these contracts can be created and maintained, it could revolutionize the industry.
3. Forking Stopped A Hack
Following a major hacking incident in 2016, the currency was forked. Because of an experiment by DAO, lots of shares were compromised or lost. The cryptocurrency decided to bounce back and protect itself.
A loophole left in the code allowed a hacker to take out $50 million before red flags were raised. In order to keep that hacker from using their stolen currency, the fork created a new code base. This created a current format and a "Classic", pre-fork.
4. It Hosts ICOs
Since all cryptocurrencies host their own ICOs, they are able to give investors a token of the currency. Ethereum's blockchain hosts a majority and helps to make the development of apps a little bit easier.
Currently, the cryptocurrency hosts around three-fourths of all ICOs.
Ethereum Is Complex and Approachable
More than any other cryptocurrency, this one has the most practical uses, making it one of the most stable of any of them. As it helps the tech community, more people invest. While it's not worth anywhere near what Bitcoin is worth, it's still a great investment.
If you're ready to get more involved with cryptocurrencies, contact us for details on where to start.