We have already taken a look at Bitcoin and OneCoin. But what about Ethereum? Its value has risen from $1 to +$260 per Ethereum in a few years. Is Ethereum a Scam? Are they just using the famous “pump and dump” method to take people’s money? I don’t think so.
Ethereum is a highly interesting innovation. However, I still have my doubts. Let’s dig deeper!
Founded: By Vitalik Buterin in 2013. Launched in 2015.
Hard to give a ranking. Ethereum technology is highly interesting and modern. It will be interesting to see how it develops and how many people start using it. (Check Out My #1 Recommendation to earn money online, 98 Out of 100)
What Is Ethereum?
Ethereum is a platform created by Vitalik Buterin that makes it possible for any developer to write and distribute next-generation decentralized applications. That’s how they describe themselves.
The founder of Ethereum, Vitalik Buterin, likes to compare it to the Internet. 20-30 years ago people didn’t really know what it is and how it works. But nowadays it has become a normal thing for our everyday lives. We can honestly say that Ethereum is something new and modern.
In this video, Vitalik explains Ethereum
Ethereum has a blockchain but it’s different than in Bitcoins. It consists of smart contracts which are simply programmed like “if this happens, then becomes this consequence.”
What Are the Benefits of Ethereum?
Ethereum allows a peer to peer technology and sharing. For example, Bitcoin uses peer to peer technology. Basically, there is not a middleman between two persons who transfer money. In a “normal situation, ” if you want to transfer money from U.S. to Asia, for example, you need a bank to be a middleman. But with Bitcoin, you transfer your money straight to your friend without that middleman.
Then there is a possibility to peer to peer sharing. Let’s say that there would be one library where all the people could get the information. Find books, video teachings and so on. Well, we have the Internet, isn’t that enough? Yes, it can be. But the idea of Ethereum is that not a single individual or company runs the show.
If you want to find information, you go to Google. But what if Google abuses their power and information? Why do we need a middleman like Google? These are the questions that Ethereum asks.
In my opinion, this idea of decentralizing the power is for sure interesting. But on the other hand, I don’t always see the problem if one company is running the show. If their service is bad, people go and choose another service. Maybe I need to see more applications of Ethereum before I am fully convinced.
Bitcoin vs Ethereum
I bet you are thinking about the difference between Bitcoin and Ethereum. You are not the only one. People all around the world are asking the same question. Why would we need Ethereum cryptocurrency if we already have a Bitcoin?
Are they competing with each other? Which one is better?
The answer is that even though they are both modern technologies and something very new, they are still different. Bitcoin was created around 8 years ago as a decentralized currency by Satoshi Nakamoto.
Ethereum has created a couple of years ago and they are also using decentralized technology. There is not a bank or any authority who is running the show. But Ethereum is not only a currency. It’s a technology where you can create new decentralized projects and Kickstarter.
Here are some examples. With Ethereum you can build:
- A token: e.g. A tradeable token with a fixed supply (like Bitcoin)
- A kickstart project: e.g. A crowdfund to pre-sell a product
- An organization: e.g. A virtual organization where members vote on issues
So, Ethereum has many applications. Here is a video where cryptocurrency expert Andreas Antonopoulos answer the question, “Does Ethereum compete against Bitcoin?” He said that the question arises in every meeting wherever he goes.
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Do I Recommend to Buy Ethereum?
Here I would like to leave the responsibility to decide for yourself. Make your own research with Ethereum, write notes and get to understand it more.
I can say that I bought myself some Ethereal because I am quite an open-minded and I see a potential of big growth in Ethereum. On the other hand, there is also a possibility to crash and go close to 0 but I think that situation is not probable.
It’s possible to buy Ethereum from many different cryptocurrency exchanges. I bought from Kraken.com but I have also used Coinbase for buying cryptocurrency and making the profit. In Coinbase there is a $10 bonus if you sign up through my links and you can withdraw it immediately after your first deposit. Learn more here.
If you are going to buy a huge amount of Ethereum, I recommend you to allocate the risk by buying through several providers.
Pros & Cons
- Highly modern technology
- The idea can be revolutionary
- Their platform allows creating decentralized applications
- There is a potential for investors (and speculators)
- The system is only 2-4 years old => It’s hard to say how it will develop
- Is decentralization always even good?
- Is the system vulnerable to attacks and hackers?
Conclusion – Is Ethereum a Scam?
In my opinion, Ethereum is not a scam like a cryptocurrency called OneCoin. They are two totally different things. OneCoin is run by a company while Ethereum is decentralized. The power of changes is not in hands of a few leaders who could do whatever they want.
What happened with OneCoin and some other cryptocurrencies is that many founders used so-called “pump and dump” technique. It means that they persuaded lots of people to join their system and when the value goes up, they sell their holdings and walk away as millionaires.
The founder of Ethereum, Vitalik Buterin, is for sure a multimillionaire after creating his technology but he doesn’t have the ownership of Ethereum. That’s the whole idea of these decentralized platforms. Not a single person runs the show.
What will happen for Ethereum in the future? Will it become a hit like the Internet? Will people create decentralized applications? Time will show.
Ethereum at a Glance…
Founded: By Vitalik Buterin in 2013. Launched in 2015.
What do you think about Ethereum?
What do you think about other cryptocurrencies? Have you ever bought them yourself?
Let me know in the comments below! 🙂
I would love to hear your thoughts and opinions. I promise to reply personally to every single comment that comes here. Also, if you have any questions, don’t hesitate to leave them below and I will be more than happy to answer.
Wow, Thanks for all the great information. I am a commodity trader but have stayed away from the movement, so to say. I guess I have missed the boat there. But I always wanted to know what it was about.
Great review and am sure I may have some questions for you in the future.
I am not sure whether you have missed the boat or not. Ethereum and other cryptocurrencies can still hugely rise if more and more people start using them. In the other words, this can be just a beginning. Who knows?
I am glad you enjoyed the review. I will be providing more helpful content in the future.
Thanks for the clarification. I always wanted to get into this area but I need to do a lot more research. I definitely do not want to put my money in the bank when I start working.
I would like to watch Ethereum a bit more to see how it evolves over time before getting into it. It is nice to know that it does not have a specific owner that can run away with my money though.
What do you think about my wait and see approach? Am I missing out?
I think we already somehow, “missed the boat” with Ethereum because it has grown so dramatically. However, I still think that there is lots of potential to grow further even though it probably won’t be as dramatic growth as in the past years.
Sometimes is good to wait and see but sometimes you can miss great opportunities with that approach. With Ethereum I wouldn’t just want to wait and see because then I would just wait that other people earn big money and I miss the opportunity. But again, it’s a personal choice and everybody takes responsibility of their own usage of money 🙂
I think you’re moving into a gray zone. I can see the difference from ethereum compared to bitcoin. As I consider the best way to switch money on the black network.
I know that both will become part of our future especially when we trade with each other. But I’m a bit old-fashioned and still think most of the cold cash.
At some point, I also know that we are going to change values in this way. My question to you is you think the world is ready for such a platform now.
why do you think it’s a gray zone? I don’t understand the point.
It’s highly interesting to see how the future of Bticoin and Ethereum and other cryptocurrencies will be. Is the world ready to move to them already? It seems that a huge amount of people have already started using them.
But will Bitcoin become the most popular currency in the world? God only knows.