Cryptocurrency

According to the Fortune Business Insights report, the global cryptocurrency market size is estimated to reach USD1,758 million by 2027, exhibiting a CAGR of 11.2%. The Covid-19 pandemic caused a considerable decline in the value of bitcoins and a sharp decline. However, the recent reports show that there has been a huge increase in the cryptocurrency market value since a new currency other than Bitcoin and Dogecoin. Reports revealed that cryptocurrency Ether hit a record high of USD3,017 this week. 

Ether is a growing digital currency as its smart contracts are better, faster, and resilient than other existing cryptos. In the current scenario, there is an increasing demand for blockchain technology and it has become more trustworthy among those who aim to perform decentralized digital transactions. Ethereum network has a Decentralized Finance (DeFi) and scalable characteristic, which makes it popular among businesses. Ethreum has been proliferating from the initial months of this year with a return percentage of more than 300, according to India Today. The report states that Ethereum rose 2% on the Bitstamp exchange to hit the milestone early in Asia trade.

Reports state that this recent soar has made Vitalik Buterin, the co-founder of Ethereum, the youngest billionaire. Vitalik is a Russian-Canadian programmer and co-founded Ethereum in 2014. He recently donated almost INR4.5 crores for the Covid relief fund in India. Ether is now the second-largest cryptocurrency after Bitcoin. 

Ethereum is an open-source, blockchain-based digital platform that hosts Ether. Ethereum as a programming language allows developers to build applications. Ethereum is hailed for its ability to aid the transfer and development of Non-Fungible Tokens (NFT), that can be uniquely possessed by individual users. 

The cryptocurrency market is a volatile one although having great benefits. Hence, investors should be vigilant while investing head-on heels on these digital currencies and distribute them among different networks to save a possible loss. Cryptocurrencies that use blockchain and distributed ledger technologies are in high demand. Blockchain was initially only associated with cryptocurrencies. Although, blockchain is now adopted by enterprises to accelerate business transformation and automation. Blockchain is considered one of the secure and transparent platforms for digital transactions. Blockchain technology has even been accepted as a great method to curb fake news. 

According to data from Coindesk, the current market cap of Ethereum is USD402.86 billion, and the price of the crypto Ether is USD3,481.32. Unlike bitcoin, which only allows peer-to-peer payment networks, Ether allows smart contracts. It is a self-executing contract for transactions that is between the buyer and the seller. This capability of blockchain eliminates the need for an intermediary in the crypto network. Considering the widely growing acceptance for blockchain, these digital currencies are here to stay although the value might keep fluctuating.