What is Ethereum and why is it so important in the cryptocurrency market?
Assalamu Alaikum
Ethereum, Coin
Originally Ethereum was born as a cryptocurrency. This currency differs from Bitcoin in some aspects, such as the algorithm used, block time, computational difficulty, and reward for mining. The big difference with other coins is that there is no maximum number of coins in this case, since this coin, unlike other coins, allows to increase the amount of coins that can be mined. Bitcoin has an end and when all coins are mined, there will be no more minable coins and they can only change hands. When that moment comes, the goods and services that could theoretically be acquired with bitcoins should drop in value, or what is the same, in price. This is a big problem for the economy, since inflation is bad, but inflation is also a big problem and Bitcoin tends to the latter, since there is nothing else, this currency should lose value.Ethereum is different from this system, since there is no coin limit, which allows this coin to grow without interruption, yes, as long as users create these coins and continue trading. Bitcoin is currently the most widely used virtual currency in the world, but Ethereum has the advantage that it is more compatible with its base and is destined to replace this cryptocurrency at some point. There are several reasons why there are still so many Bitcoins and the growth of Ethereum is not a fad. The advantage of this system is that it allows operations to be verified faster, cleans the network and makes the blockchain ledger more distributed. Energy efficiency is improved, since validating nodes require very little energy consumption to function, while a miner consumes a lot of energy.
This has its downside, as big fortunes or investors can buy many of these cryptocurrencies and store them for a long time, while they continue to buy. This will make them more weighted and the rewards will be more for them and they will benefit from the increase in the value of the cryptocurrency, since the less circulation, the higher the value of this cryptocurrency.
Conclusion
Logically, if everything is good and perfect, but all technologies have positive and negative aspects. Ethereum is a currency that is currently commanding the highest and is posing as a great competition to Bitcoin.Today's discussion ends here. I hope you find it interesting and able to understand. Share your thoughts on today's topic. Wishes and blessings to all. Everyone stay well stay healthy stay with Steemit
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Nice article on ethereum, ofcourse it remains a wonderful project one of the very best second only to Bitcoin, and surely after Bitcoin it's the most trust worthy asset in the crypto space, hope you continue to write quality content like this.
I noticed that you have highlighted the important aspects of Ethereum, which is very good, thank you, keep it up
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