Discover everything you need to know about Ethereum, including its market capitalization and price forecast for 2021. Learn the benefits and drawbacks of investing in it.
What used to be the case with blockchain and Bitcoin is no longer the case. The Ethereum token has grown in popularity to the point where many experts believe it is a better investment than Bitcoin. But, these are just personal beliefs, and Ethereum is just as volatile as Bitcoin.
What is Ethereum?
- What is Ethereum?
- Ethereum Coin Value, Ethereum Market Cap, and Ethereum Price Prediction 2021
- How The Ethereum Coin Works?
- Ethereum vs Ethereum Classic – What’s the Difference?
- Is The Ethereum Coin Good or Bad?
Ethereum coin, to put it simply, is a digital money that runs on a blockchain and executes smart contracts. Smart contracts work similarly to traditional contracts in that they execute payments based on pre-defined parameters. While Bitcoin is a digital currency, Ethereum is better suited to high-volume corporate transactions.
But wait, there’s a catch. Ether is the cryptocurrency that runs on Ethereum’s blockchain technology. Consider Ethereum to be the Internet, and Ether to be one of the goods that has emerged from it. Ethereum is also used to create a number of decentralized applications. Let’s use Ethereum as an example throughout this article for the sake of discussion.
Ethereum is comparable to Bitcoin in that you can buy it on a cryptocurrency exchange, use it to make transactions, and convert it to fiat currencies. You can also invest in Ethereum blockchain in the same way that you would in Bitcoin, with the expectation that the cryptocurrency will appreciate in value over time.
Vitalik Buterin, the creator of the Ethereum coin network, established Ethereum with the purpose of using it as a programming language for developing blockchain applications. They built Ethereum in the same way that Bitcoin was developed, but they expanded the use case beyond cryptocurrency.
Ethereum Coin Value, Ethereum Market Cap, and Ethereum Price Prediction 2021
The current value of an Ethereum coin in Indian rupees is 1.92 lakh.
So far (June 2021), 2021 has been a tumultuous year for Ethereum coin value, with numerous ups and downs in values after reaching many new highs, but the currency has witnessed a net gain.
At the start of the year, the price of Ethereum in INR was at INR 53K, but it steadily increased until mid-May, when it reached an all-time high of INR 2.87 Lakh per coin. Yet, most currencies’ prices have fallen as a result of recent happenings in the crypto realm, even though they appear to be recovering.
At the time of writing, Ethereum’s market capitalization is INR 22.312 trillion, making it the world’s second most valuable cryptocurrency after Bitcoin.
According to some analysts, the Ethereum coin value is expected to rise by 30% from its current level by the end of 2021, reaching INR 2.55 lakh per coin. While crypto is in high demand practically all of the time, it is also the primary platform for DeFI and NFT, both of which have been popular in 2021. As a result, the Ethereum coin forecast for 2021 remains positive, however things can swiftly change.
How The Ethereum Coin Works?
The Ethereum blockchain fundamentally is very similar to Bitcoin’s. But it is designed in such a way that developers can write software that automatically manages transactions and it’s outcomes. This is called a ‘smart contract’.
Unlike traditional contracts, which are written on paper, Ethereum smart contracts are written in code. The points indicated in the Ethereum smart contract are automatically performed once the criteria are met. Smart contracts provide for complete transparency, eliminate delays, and fully automate the process without the need for recurrent human participation. Smart contracts based on Ethereum are gradually making their way into real estate, insurance, financial services, legal, and crowdfunding applications.
Smart contracts have the advantage of eliminating the need for a middleman. It provides the user with complete control while also saving money. Because smart contracts are stored on the blockchain, they are safe, secure, and accessible to all parties involved in the contract. Finally, processing manual documents takes less time and effort.
Also Read: The Complete Guide to Bitcoin
Ethereum vs Ethereum Classic – What’s the Difference?
Ethereum is a fork of the Ethereum Classic cryptocurrency. A hard fork, as opposed to a soft fork, entails the division of software into two versions, and users who migrate to the newer community and versions are unable to return to the former way.
The symbol for Ethereum Classic is ETC.
The thought process differs significantly between ETH and ETC. Ethereum, for example, does not believe that the blockchain is immutable. Those who believe the blockchain is immutable argue that tampering with it should be prohibited because it can lead to corruption.
In December 2016, an attack on the DAO prompted the creation of ETC. After the Ethereum was stolen, the Ethereum community was divided over what to do next to address the problem. While some claimed that because the blockchain is immutable, it should not be altered with, others supported it.
Therefore, they chose the hard fork in order to be able to repay all lost funds to users. The new version was dubbed Ethereum (ETH), whereas the older version was dubbed Ethereum Classic (ETC).
Difference in Value
At the time of writing, ETH is worth far more than ETC. ETH has a large number of investors and supporters, and the development team is constantly working on new features and updates.
Outlook For the Future
Many people believe that Ethereum Classic’s time has passed. This is due in large part to the poor performance of the team in charge. On the other hand, Ethereum has been actively competing against Bitcoin and is rapidly increasing in terms of daily value and market cap (currently second only to Bitcoin).
Difference in Features
The Enterprise Ethereum Association, which includes more than 200 organizations, some of which are part of the Fortune 500, is a major supporter of ETH. JP Morgan, Microsoft, Toyota, and others are among these businesses. ETC falls behind in terms of smart contract functionality and development, and so does not have as much business backing.
Is The Ethereum Coin Good or Bad?
Let’s take a look at both sides of the Ethereum coin to see if it’s worth investing in (or even considering investing in).)
Good side of Ethereum Coin:
One of the biggest decentralized currencies in the world:
It has continuously been the most decentralized and popular crypto in the world after Bitcoin. Although it has the support of several powerful groups and individuals, the authority does not lie with person or any one entity. This ensures that there is no meddling or corruption.
Active Developer Community:
The community is one of the world’s largest, and it is very active and close-knit. Bitcoin is dwarfed by the development community. While blockchain technology is still in its infancy, the broad developer community aids in the successful development of solutions to the world’s most pressing issues.
Large Product Collection:
As previously said, Ethereum serves as the foundation for hundreds of additional products. As a result, it works well with this product line. If you’re looking to increase your cryptocurrency investments and efforts, Ethereum is one of the most intriguing options.
Cons of Ethereum Coin
Speed is a Little Slow:
Increased transaction fees are part of the package. Ethereum has a transaction rate of 15 transactions per second. The cost of executing a relatively sophisticated Ethereum smart contract might range from $50 to $100. Individuals that use Ethereum frequently express their dissatisfaction with the expensive platform costs and excessive traffic.
Complicated for Beginners:
It is only now that enough tutorials and guidance for beginners to get started with the Ethereum blockchain are being developed. Because it is a programming language rather than a simple money, the technical details might be confusing for newcomers, especially those unfamiliar with the crypto world.
Difficulties in Programming:
Solidify is required for developers who want to create goods on the Ethereum network. Many programmers are unfamiliar with the programming language, and this difficulties may lead them to develop contracts with flaws. They can be dangerous to use because the vulnerabilities could be exploited.
The Ethereum coin is an exciting crypto market. If you are new and want to get your hands in crypto, Ethereum is one of the best places to start. Do follow the community on Twitter and various Ethereum enthusiasts groups on different social media platforms for more relevant insights and news. These help a lot in understanding the cryptocurrency platform better.