A lot of experts hail Ethereum as a life-changing cryptocurrency. Yet, when you see, the second largest digital currency (by market cap) is always in the shadow of Bitcoin and behind the enthusiasm regarding its price.
However, when you think about it, Ethereum’s price was somewhere above $8 on January 1st this year (2017), and is now valued at $462. The cryptocurrency even got above $500 over the past weeks but has stabilized at the near-$500 region. The rise of value by more than 5000% is mostly because of the fact that Ethereum makes use of a blockchain – which is essentially a database maintained by several thousand individuals – rather than one administrator.
So, Ethereum basically “wants to be a ‘World Computer’ that would decentralise and democratise the existing client-server model. With it, servers and clouds are replaced by thousands of so-called ‘nodes’ that run by volunteers from around the world, forming a the ‘World Computer’.”, according to Coindesk.com
As one report by Motherboard notes, “Ethereum has almost five times as many nodes in the network as bitcoin, which means that more people are using their computers to support it.” Hence, the value of Ethereum could be bigger.
So, when you see some of these metrics, you will realize that Ethereum already has eaten Bitcoin’s lunch. This is mostly because it has almost five times as many nodes in the network as bitcoin, which means that mroe people are using their computers in order to support it. It also has more transactions per day.
There is even a term for Ethereum overtaking Bitcoin which is known as ‘The Flippening’. However, Bitcoin’s price is way greater than Ethereum and that way, the market cap sits at about $280 billion compared to the $44 billion market cap that Ethereum has.
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