There’s no getting away from the fact that there has been an increased amount of investment going into cryptocurrency in recent years. While the market might have started with Bitcoin, there are other currencies like Ethereum that are also now incredibly popular. Ethereum has been on the rise for a good few years, and there are a number of reasons as to why so many people are turning to it as the token to invest in. This article will discuss in more detail the different reasons as to why Ethereum is so popular at the moment.
What is Ethereum?
Before going into why people like Ethereum so much, it’s first worth discussing what it actually is. Ethereum was introduced as a currency which would be used to improve Bitcoin. A lot of people agree it has done so and when you have a look at the Ethereum price history at OKX, the steady increase in value since its creation is a clear indication to how well it has been received.
The blockchain for Ethereum is put together using a Turing-complete scripting language. This in turn has the ability to run smart contracts at the same time across all nodes. What does this mean? It means that it is able to achieve a variable consensus without the need for any third-party intervention.
Why is it Popular?
So, why is it so popular? Some of the most significant reasons include but aren’t limited to:
- Smart Contract Capability
When it comes to discussing the benefits of Ethereum, there is only one true place to start: the smart contract capability. Ethereum was initially made to be a platform for running programmatic smart contracts and other applications using its own currency. There are a number of instances in the real world where this is emerging and then sustaining its value given the Ethereum blockchain is able to execute different smart contracts that can be powered using dApps.
- Disinflationary Supply
Another reason why Ethereum has become so popular is because of the disinflationary supply that it offers. Bitcoin has a finite supply of 21 million coins; Ethereum is different because there is unlimited Ether available. That being said, the amount that gets mined every year is capped. The supply increases in accordance with the mechanism put in place for disinflation, which as the network matures is going to continue to be amended, meaning it should keep running at a good level and Ethereum will maintain its high value.
- Scalability and Speed
The scalability and speed of Ethereum is also a benefit. It differs from Bitcoin as it is measured by two chief metrics. Block times are a lot quicker than Bitcoins, coming in at around 10 to 15 seconds as opposed to Bitcoins which is 10 minutes. Not only that but when you are completing a transaction using Bitcoin, this takes about 40 minutes, whereas it’s only about 5 with Ethereum. This guaranteed speed is another pivotal reason as to why so many people have been using it.
