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The Importance of Ethereum in 2022

Cryptocurrencies are making a lot of buzz in this digital age. You can make instant payments in seconds, impeccable security, nominal fees, and above all, no intermediary is involved. But some cryptocurrencies have evolved better than others. Bitcoin and Ethereum are two of the most valued and popular cryptocurrencies today.

Bitcoin, being the pioneer, has largely dominated the market with a market cap of over 400 billion dollars. But Ethereum (ETH) is closing this gap rapidly with each passing year.

Today market cap of ETH stands over 200 billion dollars – and it’s somewhat just the beginning.

Unlike Bitcoin, ETH is relatively new. It was launched five years back, but it has aggressively continued to capture the crypto market ever since its launch.

ETH holds the feather of the most used blockchain network on its cap. It has the second-largest cryptocurrency, Ether, in terms of volume and trade.

The Effect of Crypto Winter on Ethereum

Crypto winter has been in motion since November 2021 – an extended period of a dip in crypto prices.

As a consequence, the Crypto market has nosedived, with Bitcoin shedding 60 percent of its value. It saw its peak last year at a marvelous $68,000.

ETH experienced a somewhat similar fate of crashing down to its price last seen in 2018.

But many experts predict that Ethereum will no longer follow the footprints of Bitcoin in rapidly fluctuating. It is well-equipped and offers so much more than Bitcoin.

One such expert is Carl Runefelt. He is a prominent global crypto leader and investor who has poured money into more than 360 crypto startups around the world. He believes that Ethereum will likely dominate the next decade and is an excellent investment.

While speaking on his YouTube channel, The Moon, he said, “I had gotten some nice profits from my Ethereum holdings for a long time. I have been holding Ethereum for multiple years.”

Why Ethereum Will Dominate – What it Offers?

Experts say the ETH price will rise rapidly in the next few years. And this rise is justified for several reasons.

Let’s look into them.

Smart Contracts

Simply put, smart contracts are programs that run on the Ethereum blockchain. Consider them real-world contracts; it’s just that they are digital.

Technically, these are programs that the Ethereum blockchain executes automatically when some conditions are met. For instance, a smart contract will put forward a token when you deposit fiat.

Smart contracts are based on the principle of decentralization. It keeps your transactions secure and anonymous without involving the middleman or central authority.

New-Era Connectivity

ETH is proving itself as a mega infrastructure that is revolutionizing the finance industry. The introduction of DeFi is disrupting and rewriting the whole financial sector.

This means that apps built on Ethereum will also impact major areas like governance and public services.

Proof of Stake Model

Bitcoin and ETH both rely on the proof-of-work principle in their processes. This includes a network-wide agreement by miners.

As ETH continues to make unprecedented headways, it is introducing Ethereum 2.0 version. There will culminate in switching toward the proof-of-stake model.

Overall, with ETH 2.0, its processing and transaction speed will touch new levels. Consequently, the value of Ethereum will skyrocket.

Scalability and Speed

Let’s compare Ethereum with its competitor, Bitcoin, in terms of speed. Ethereum outperforms it with a clear margin. While Bitcoin block time is 10 minutes, Ethereum takes merely 10 to 15 seconds. When it comes to reflecting its transaction, ETH stands as a clear winner again with just 5 minutes, whereas Bitcoin takes 40 minutes.

Carl Runefelt says, “Overall, you get speed and security with Ethereum transactions. This is also one of the major reasons for accumulating crypto because a time will come when it will be impossible for a normal person to get their hands on Bitcoin or ETH.”

Experts now predict the speed at which ETH is upgrading itself, it will increase its transaction speed by 1000 folds.

TOP CRYPTOCURRENCIES LIST AND THEIR LIVE STATS

Unlimited Supply of Ether

Bitcoin has a limited supply of 21 million coins. That is why experts term it a hedge against inflation. Ether, on the other hand, has an unlimited supply. This means it has a disinflationary supply of coins.

Ethereum is the Technology of the Future

Ethereum has stolen the spotlight in the last couple of years – witnessing exponential growth.

The impregnable security offered by Ethereum, along with numerous use cases, makes Ethereum the future technology.

This has triggered investors to invest in this innovative technology in large numbers.

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