Etherum is not a simple alternative to Bitcoin itself, but is a platform that takes advantage of blockchain technology (also used by Bitcoin) not only to offer another alternative payment method similar to Bitcoin, Ether, but it is a software development platform that helps in the creation of cryptocurrency systems that share a chain of blocks, better known as blockchain, where the records that are entered cannot be edited or modified at any time.
But if what interests you is to know If Ethereum is an alternative to Bitcon, the answer is no. The alternative to Bitcoin that Ethereum offers us is called Ether, a platform apart from the Ethereum project of which we will tell you everything below so that you know how it works and how to buy Ethereum.
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What is Ethereum?
As I have commented above, Ethereum is a project that combines a digital currency, Ether, like Bitcoin, but takes advantage of the possibilities that blockchain offers us, an unalterable record and that since the birth of Ethereum has been directed to the creation of smart contracts. Smart contracts, as a general rule, include a financial operation, they act in a transparent way for both parties and their operation is very similar to programming codes If they do that. That is, if this happens, you must do this another yes or yes.
All this information is reflected in the blockchain, an unalterable record where all operations are reflected, whether for the sale or purchase of currencies, smart contracts ... The information stored in the platform's blockchain is accessible to everyone and is available on all the computers that make up the Ethereum network. The operation of the Bitcoins blockchain is practically the same, but only the transaction data is recorded in it, since the possibilities offered by this technology have not been expanded.
What is Ether?
The Ethereum platform is not a currency itself. The Ether is the currency of the Ethereum platform, and with which we can make payments to people for items or services. Ether is another of the cryptocurrencies available in the market that have been launched to compete with Bitcoins, but unlike the latter, Ether is included within a platform that takes full advantage of blockchains, better known as blockchain.
Ether, just like Bitcoin is not controlled by any financial body, so its value or quotation is not linked to stocks, real estate or currencies. The value of Ether is determined in the open market according to the purchase and sale operations that exist at that time, so its price will change in real time.
While the number of Bitcoins is limited to 21 million, Ether is not limited, hence its price is currently very 10 times lower than Bitcoins. During the pre-sale that took place before the launch of Ethereum, 72 million Ether were created for all users who contributed through the Kickstarter platform in the project and for the Ethereum foundation, which, as we will see, offers us other much more important functions and valuable. According to the terms drawn up during the pre-sale in 2014, the issuance of Ether is limited to 18 million per year.
Who created Ethereum?
Unlike Bitcoins, the creator of Ethereum has a first and last name and does not hide. Vitalik Buterin started Ethereum development in late 2014. In order to finance the development of the project, Vitalik sought public funding, raising just over 18 million dollars. Before focusing on the Ethereum project, Vitalik was writing in different blogs about Bitcoins, it was then that he began to develop the options that the technology that uses Bitcoin could offer him and that until that moment was wasted.
The alternative to Bitcoin
Currently in the market we can find a large number of alternatives to the almighty Bitcoin, but as time passes, this number has been reduced considerably leaving ether, Litecoin and Ripple as the alternatives most used by users. Much of the success that Ether is having, is thanks to all Ethereum project that is behind, since if it were only an alternative, it would not have managed to get hold of a quarter of the operations that are carried out around the world with cryptocurrencies, where Bitcoin is king with almost 50% of the trades.
How to buy Ethereum?
Next we will explain how to buy Ethereum Or rather, how to buy Ethers which is the name of the cryptocurrency.
Being a direct competition from Bitcoin, to be able to get fully involved in the creation of Ethers we need a powerful computer, internet connection and the necessary software to be able to become part of the network that integrates it, and thus begin to obtain this type of digital currency. Taking into account that Bitcoin began to operate in 2009, the application and the different forks that we can find in the market are working at full capacity, something that we cannot say about Ethereum at the moment.
We can also choose the fast track and buy Ethereum directly this currency through services like Coinbase, a service that also allows us to store our cryptocurrencies safely.
What is blockchain?
In order to explain the advantages that Ethereum offers us, we have to talk about blockchain, the protocol used to manage all the records and operations that are carried out with Ether, same protocol used by Bitcoins but to which they have given a much more important utility that offers security.
Blockchain is a registry where all the information related to cryptocurrencies is stored. Each cryptocurrency uses a different registry. This record cannot be edited or modified at any time and it is also visible to all, so that anyone can access it. The protection against the modifications that blockchain offers us is its main virtue since they can be used to create Smart Contracts.
Thanks to Ethereum you can make contracts that if the written conditions are fulfilled, they will be fulfilled if or if automatically without a third person having to give the go-ahead. The conditioning factor for the conditions to be met can be selected from the sources established by both parties. The banking system is one of the most interested in being able to adopt this type of contract to automate deposit contracts and others with clients, since it would avoid possible human errors in addition to allowing an autonomous operation.
Imagine that you have a portfolio of securities in which you have established the condition that if the price of a certain security reaches the figure X they sell automatically. With an Ethereum smart contract no person would have to intervene, Nobody has to be aware of the price at all times to proceed to sell the shares when they reach a certain value.
Although everything seems and is very beautiful, it must be borne in mind that this type of contract cannot be modified so once it is included in the registry only if you can cancel if a condition has been set that allows it. Nor can the terms of the agreement be modified, since as I have commented blockchain is a record that cannot be edited or modified at any time.
Is there a cryptocurrency bubble?
Like any other type of asset, cryptocurrencies are susceptible to bubbles that inflate their price well above their real value. In the case of cryptocurrencies, detecting a possible bubble is a much more complicated task than in other types of assets since it is almost impossible to determine the true value of something as ethereal as a cryptocurrency can be. The value of an Ether is fixed by the law of supply and demand, the more people buy Ethers, the more its price rises and vice versa, which can cause its current price to be strongly affected by speculators who buy and sell cryptocurrencies thinking only of speculate on its price. An advantage that Ether has over Bitcoin is that its quantity is not limited to 21 million units but that 18 million ethers are released every year which will help curb inflation in the value.
Even so, it is difficult to know if we are really facing a bubble or not, since some experts consider that in 5-10 years the price of an Ether may be higher than 100 times the current one which would indicate that it still has a high upward journey.
If Ethereum has convinced you and you want to be part of this cryptocurrency, here you can buy Ethers. Have you still not encouraged buy Ethereum?