Ethereum becoming an official challenger to Bitcoin

in cryptocurrency •  7 years ago  (edited)

Earlier this morning Ether surged to over $350 per coin. Setting yet another all time high. 

Since early January Ether has been on an incredible run. Trading for around $8 at the time, it has now run up over 4,000% in just the last 6 months. 

During that same time Bitcoin is up just over 200%. A great return in it's own right, but it is pretty clear to see where the major returns are coming from.

To put this run that Ether is currently on into even more perspective, it was trading for around $.90 in January of 2016. I won't even get into the percentage returns on that, but it's huge. 

Ever since Bitcoin was created in 2009, it has been Bitcoin and then everyone else.

However, in the last couple months there has emerged the first real legitimate challenger to Bitcoin's throne. 

Ethereum is backed by big time Wall Street corporations such as JPMorgan, Microsoft, and Intel. 

The entire list can be seen here:

 https://entethalliance.org/members/ 

I did a post a few weeks ago talking about some of the companies backing Ethereum, it can be read here:

https://steemit.com/bitcoin/@jrcornel/bitcoin-tops-usd2500-and-ether-tops-usd210-both-all-time-highs

The dollar trading volume between the two has gotten startling close.

Usually the dollar volume traded each day is dominated by Bitcoin. However, over the last 24 hours, Bitcoin and Ether have both traded roughly $2 billion USD each.

Furthermore, Ether's market cap now sits at $31 billion, which is over half of Bitcoin's current market cap. That might not sound like much, but no coin has really ever gotten close to challenging Bitcoin's market cap leadership position until now. 

Bitcoin has fallen below the 50% threshold of the entire market cap of the crypto space for several months now, and even though it has risen over that time, it still hasn't been able to regain that 50% threshold.

The primary reason is because of the incredible surge taking place by the rest of the virtual currency space.

What is Ethereum?

From their website (https://www.ethereum.org/), Ethereum can be defined as:

A decentralized platform that runs smart contracts. Applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third party interference. 
These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.

Basically, Ethereum hopes that it could one day become the backbone for the entire world with many decentralized applications running on top of it in some shape or form, casting a much broader net than Bitcoin. Scaling issues aside, that is the ultimate vision from Ethereum creator Vitalik Buterin. 

Either way, Bitcoin is not going away.

No matter if Ethereum or some other coin eventually overtakes Bitcoin in terms of marketcap, it is not going the way of the dinosaur. 

It is already too entrenched to completely disappear. Even if the technology behind it's blockchain is a bit dated. 

It seems likely that at some point someone will overtake Bitcoin, and it looks likely that someone might be Ethereum. However, even when that happens I still find it hard to believe that Bitcoin is not the first name mentioned when talking about crypotcurrencies. It's hard to replace it's first mover advantage. 

Perhaps with enough people using a Steem powered social media site we can one day talk about Steem surpassing Bitcoin as well in terms of market cap. 

That day seems a long ways off, but it sure would be a fun day indeed. 

Stay informed my friends!

Sources:

https://themerkle.com/ethereum-value-surges-to-us350/

https://bitcoinmagazine.com/articles/vitalik-buterin-on-his-long-term-goals-for-ethereum-1462381147/

Image Sources:

https://bitcoinmagazine.com/articles/vitalik-buterin-on-his-long-term-goals-for-ethereum-1462381147/

https://coinmarketcap.com/currencies/ethereum/

https://thebitcoinking.uk/

Follow me: @jrcornel

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

I wonder how soon the developing nations will start using Ethereum smart contracts to pay for all the development happening through contractors especially from China and other nations.

  ·  7 years ago (edited)

Thank you @barbro. Much appreciated.

This is just a hunch. but they may start using a Ethereum setup to get funding from Investors through JP Morgan and large hedge funds, to start building the infrastructure in their countries. Using the block chain to move provide large sums of money through smart contracts. This will provide security that is superior then traditional contracts at a cheaper cost. I can see that wire transfer fees will be one way of savings.

There's a number of players in this particular space such as Ripple and Stellar. The JP Morgan fork is a hint that they will probably try to compete in the same way I'm guessing.

What is so different about this particular currency?

The Smart Contracts

  ·  7 years ago (edited)

In Ethereum computations can be embedded into each transaction, essentially allowing miners to process computing determined by the developers writing smart contracts.

It seems the future of Ether is bright. The Ethereum Enterprise Alliance is certainly propelling the Tech forward.

  ·  7 years ago (edited)

What has set Ethereum apart from other alt-coins is the fact they have never tried to be the next Bitcoin or Bitcoin 2.0. Ethereum takes blockchain technology and applies it to unique use cases that Bitcoin cannot currently compete with. While Bitcoin’s emphasis has always been on securing the network, Ethereum offer significantly greater flexibility. It is my hope as a supporter of both Bitcoin and Ethereum that each will find their niche and effectively optimize to dominate therein. At the currently high fees and extended confirmation times, Bitcoin is no longer feasible for accepting micro payments. Anyone have any thoughts on the proposed BIP 148?

Ehh. I really don't like this comparison.

ETH and BTC are trying to solve two different things. ETH is not a store of value - it was never supposed to be. Bitcoin is.

Completely different. Period.

Does it make it extra hard for Steem to reach bitcoin market cap as there is no maximum supply of Steem?

Not really. It might make the price per coin forever lower, but market cap is determined by how many people want to buy the coin, and how much money they're willing to put in.
If 100 people are willing to pay $1000 for a coin, it's market cap will be $100,000 -- regardless of the supply of the coin.

Look at how DOGE used to be in the top 10. An individual DOGE is worth almost nothing, and the supply is unlimited, but it is way ahead of '42COIN', of which there will only ever be 42.

The trend is clear, as you pointed out. We're smart to invest both in BTC and ETH, but Ethereum is poised to make much greater gains in the near future, and is likely to overtake or at least equal bitcoin as the #1 crypto!

Totally agree. Especially lately you have noticed that if Bitcoin goes up it also drags Ethereum with it but Ethereum itself is also growing on its own and with all its backing probably close the gap soon.

100% Agree. Ethereum has a higher ROI so the investors are going for ethereum and in the end investments are the driving force behind price. It think ethereum can even hit 1000$ by the end of 2017.

Could happen in the next month at this rate.

thanks for the tip!
I was thinking sell ETH already back then :D

My thoughts exactly, I think it will increase at a much faster rate than bitcoin did maybe even catching up in USD value. Im all in on both myself.

Some of my thoughts on all 3 coins in this blog, would love to have a conversation about it here.. I think ETH has a much higher possibility than BTC because of potential help from Russia... https://steemit.com/steemit/@wvm/is-today-the-day-bitcoin-cracks-3k

Serious question, what does ETH offer which ZEC doesn't?

Smart contracts. @rejoys

On the advice of a good steemit friend, I split my my Bitcoin holdings into ETH about 2 weeks ago. Watching them both rise in value has been satisfying. But it's good to not miss out on one of these bullruns for once.

I'm just waiting for the steem bull to come charging through. THAT will be an exciting time for me, as I own about 1000X more Steem than anything else :)

Bitcoin is like Google.. Strong name. the name is well known to people. That has lasting power... Ether is like that 2nd chance for investors that missed out on the Bitcoin ship.. Like me who had a chance to invest when Bitcoin was $5 - $10... I started in on Ether around $9 and have full confidence that it will reach $1k

Agree. The excitement about Ether is being able to participate in ICO’s

Bitcoin maybe more like Netscape, Gateway, and other tech companies that were early giants but disappeared into memory . JP Morgan, Microsoft and others are some of the largest company's in the world and gives Etherum a huge advantage. I see Etherum taken passing over Bitcoin and taking the lead. Bitcoin may turn out to be the next prodigy. Invest in both and in the future some other platform maybe the winner. Time will tell.

@seymourbucks
Yes, it's def going to $1000 beginning of next year(2018). You heard it from me @tradz ;)
Eth isn't the only chance to catch up where ppl missed out on investing in bitcoin in it's early stages. We have so many coins that can make us some serious money by just investing under pennies(sats) and cashing out on just $1.

I don't know about Bitcoin name being like Google, in social media Myspace was greater than Facebook... for some reason I think the comparison of Bitcoin to Myspace fits a bit better. And lucky you on Ether at $9!!! Some of my thoughts on all 3 coins in this blog, would love to have a conversation about it here.. I think ETH has a much higher possibility than BTC because of potential help from Russia... https://steemit.com/steemit/@wvm/is-today-the-day-bitcoin-cracks-3k

I think it will reach even more!

Seriously, WHEN is this meteoric rise going to have a big correction so latecomers like me can get in?? :p

It'll probably have a correction within 24 hours of me investing in it. So I'll let you know when I do, and you can prepare to buy in after :)

I loled. The problem is, if you invest and it tanks, then when I invest it might kill it entirely :p

I don't think you are late. 300% returns on Ethereum are still very realistic.

How high can it go? 500 by end of this year?

it can go where ever it likes... haha it is too difficult to give a number. in fact every prediction is hard/impossible

I think it has the potential to reach 1000$ by the end of the year but in case of cryptos you can not be sure.

exactly

what do you think is going to happen with scaling issue with Bitcoin, will we have 2 coins of btc like ethereum?

ETH broke the $400 threshold. At what price is ETH running up to? I personally think it has a lot more room ahead.... I was pounding the table when it was $8 and $12 a coin.

Wonderful P0st. I have to start getting into LTC now cuz it's next in line to reach the $300 mark. I tried to catch ETH @17 but it took off b4 I had money to invest;(
Gave up as I started to place more money into cheaper coins. I will figure a way to go about it. I may just buy one LTC this coming wk just to get it out the way lol
REsteemed ;)

Some people are saying ETH will get to $1,000 by the end of the year. The market is expanding so rapidly it may get there even before then.

This bull market has been a wild ride. I am glad for any of us who managed to get in at the best opportunity.

It's possible that ETH is surpassing BTC's market cap sooner than we think right here - right now.
My thoughts behind that:

1st - "Watch money flow!" Stocks, bonds, housing markets are all in a big fat ugly bubble; if the money leaves them - like it did last friday in the tech sector on a very small portion - big fat money will flow into other directions... especially into the cryptocurrency market and the long suppressed physical PM markets!

2nd - "ETH is a much broader market!" Meaning by that: if I want to transfer big fat money very fast on low fees, ETH is much quicker and cheaper than BTC is right now! No one who is transfering big amounts is patient enough to wait more than it needs! ETH is also becoming a SOV, slow but steady! - (Store of Value; maybe even on a much higher return than BTC!)

3rd - "China & Russia (& Brics)!" Some insiders say that they're trying to set up a cryptocurrency backed by Gold on the ETH-chain.... - wasn't Vladimir dating Vitalik lately??! Mmmmmh...

4th - "Psychology!" If I have a clear goal and have come that far, I will make the last steps that it takes to reach my goal... - (as NADAL did today in Paris!); meaning some will try to pump ETH even further to kick BTC right in the ass.

Cheers folks, have a nice one!

People that say ETH is going to the moon do not understand inflation. Casper is coming online soon and soon after ETH will have controllable growth. If it gets too expensive to build on, then they will enforce capital controls.

Remeber folks. Etherium is not a currency, it is a platform.

Bitcoin is deflationary, ETH inflationary. Own both but know how their properties are different and will behave when mature.

It is unbelievable the run that Ethereum is on. Especially considering that not 1 DAPP is actually running or usable at this point as far as I know. I mean what is taking so long?
Hopefully some of the investors will realize this and take some of that money to Steem!

yes I love ethereum- seems its def going up against it and is taking bitcoin on. This is a fun ride

You are right but what of Zcash?

Both are great however I do not see Etherium surpassing Bitcoin in the near future unless something really bad happens to Bitcoin. Remenber that Etheriu has a face : CEO which can be compromised but bitcoin has no management and is the papi of them all...Good post @jrcornel

Well said! I am surprised no one wants to up-vote your comment.... They are all going crazy about ICOs...

Exactly I agree Ethereum is becoming an active competitor in crypto market and those haven't yet invested much in crypto must go for Etheruem best time to get in to the race of crypto.

Is true Ether is so fast pursuing bitcoin but before either will get to bitcoin level that means bitcoin would have been in saturated state welcoming the children "altcoins"

I see ethereum overtaking bitcoin in the next few days for sure. just because of the usage (ethereum platform) i think it deserves to have a higher value..

Thanks jrcornel, this article keeps me excited about owning Bitcoin Etherium and steem. I also have litecoin for now...

Bitcoin has the first mover advantage, however, Ethereum is innovating all the time and has much more utility than Bitcoin. Ethereum taking the number one position could happen very soon.

big time. this is crazy. soon it will have more marketcap for sure!

bitcoin still good to keep our future.

I think both serve entirely different purposes. They will both have their place in the field of cryptocurrencies.

Eventually one day, gas will power the decentralized blockchain. I think XBT will be like one of those big banks - too clouted, but too big to collapse entirely. Unless the developers behind it get some more value into holding a bitcoin, other than a form of currency.

No, I will purchase 1 ETH and 1 LTC this wk ;)

thanks for this interesting post,i have gotten great insight into cryptocurrency from following you and reading your post.BTC and ETH are the top dogs, what other coin still under $1 do you see gaining momentum sometime in the nearest future. if you could do a post on that it would be an eye opener to a lot of us.

In accumulation mode when it comes to Ethereum.
Excellent post as always, happy Sunday.

4,000% in just the last 6 months.... Now that is CRAZY!!

Let's just hope it's not stage-1 of that rocket :)

I agree with your assessment, ETH could take over as the leader. Of course, it's also a good idea to diversify so that you don't miss the boat any possible surges. I think the digital world of currency is surging in general, I'm an example of that since its only been about a month since I started getting into it. Glad to be here!

Good article. Nice basic info about Ethereum and its helpful to hear about the trading volumes matching.

People interested in understanding more about Ethereum will likely enjoy this probabilistic valuation I just wrote - https://steemit.com/bitcoin/@chainstudy/what-s-ether-worth

hello jrcornel i like the post and your right Ethereum is truly a challenger at this point being above 50% bitcoins market cap really unsettling but great if your a Ethereum investor. Ethereum will be king of the hill one day in my humble opinion. by the way i just added you to my follow list and upvoted you, im new to steemit would appreciate it if you could do the same.
great post again love the content keep them coming, Thanks

The upside for ETH is huge as more and more people start using Crypto and ETH is the more affordable option the volume traded might even be more than BTC .

I'm going to agree with pretty much what has already been said.
Bitcoin is here to stay, but I look at etherium as an open door for some people just getting into cryptocurrency. People who got bitcoin for a few bucks are rich! Same for the ones who got Etherium at 10 bucks. Damn I'm so angry I didn't pay better attention. But it's me and my brother in law trying to get into it, learning about it, and from what we have learned from reading, I do see Etherium reaching 2000.00 soon, with no problem and more! Will that mean bitcoin losses value?
Now that's the question to ask!!!! I think Etherium is going to become top dog.

I think Ethereum will soon beat the bit change at some point.
It may take some time.

I lived in Asia for many years, and I noticed how they loved to take very big risks and speculate on any market that was hot. And it looks as though the Asians are a big contributing factor in this run up in cryptos. No telling where this could go...

very true that ethereum has gained a lot in 2017 and it may touch the 1000usd mark by the end of the year

Don't forget that Ethereum is many orders of magnitude more complex than Bitcoin and although it's promising as a technology, with complexity comes higher possibility of bugs. Particularly with the massive protocol change to Proof of Stake.

Point being, don't put all your apples in one basket.

ETH is going places and going there real fast!

Bitcoin Bitcoin $47,431,231,440
Ethereum Ethereum $35,938,718,948

Alright it's just 75% !!! When we see the same Market Cap ?
1 Week? 1 Month ? who knows !!

Yeah, we really need to look at market cap, I don't see it surpassing bitcoin market cap anytime soon, but as the total market cap is growing daily, you will see a lot of the market grow. Currenlt as of writing this we are seeing a slight drop in the total market cap ($106b). One things is for sure is it will be a crazy ride!

Congratulations @jrcornel!
Your post was mentioned in my hit parade in the following category:

  • Upvotes - Ranked 8 with 585 upvotes

All crypto-currencies The price will keep rising of their own value.

Ethereum is the #1 coin. Bitcoin was a test coin. Ethereum is the one they plan to use. Better not be holding Bitcoin past August 23rd.

Why august 23?

Is August 23rd some arbitrary date?

who is "they"?

Ethereum's concept is fascinating. Its like freedom for developers. I hope it will move a long way.

Good, I have still some time left to sell ETH before the market realizes that ETH has infinite supply, lol.

Intresting facts but not sure if ether will be able to beat bitcoins price. As ether is not currency and bitcoins is only currency and you can say it's digital gold.

nice...let's celebrate bitcoin shut up high.... upvote and resteem for bitcoin....

You are right...
The price is higher, ethereum bitcoin rival
Good news...
Upvote & Resteem

There is one problem with Ethereum. It's horribly complicated.
Does anyone know how they really work inside? Basically no article says how it functions, only what it does. You would need to go deep into whitepapers.

With Bitcoin, there is completely different story. Here is blockchain, this is how block looks like, hash goes here, mining means that... etc. Everything can be described in one YouTube video.

In my opinion this is why Ethereum will never replace Bitcoin. Too much error-prone. Developers will rather stick to something they understand better.

Yes. Bitcoin will eventually be equalled by Ethereum (if not overtake it) this is mainly due to higher ROI on etherum. So investors are more likely to invest in ethereum then bitcoin. And in the end of the day the prices are driven by the investments.

like

Ethereum is now getting the pump due to ICO scams once they fail, Ethereum will come down to 8$, Bitcoin is the real "Store of value"....

Nice blog. I was about to start a similair discussion. The biggest group of uneducated investors in mankind get's a shot to determine the price of a crypto. It's an interesting world we live in. Does anyone know about: https://www.coincheckup.com The site lets you check all there is to know about the team, product, communication transparency, advisors and investment statistics on every crypto. Check: https://www.coincheckup.com/coins/Bitcoin#analysis For the Bitcoin Investment research.

This is crazy! Eth indeed hit 400$ today :O

I don't think anyone truly grasps the potential of Ether for revolutionizing so much in our world!

It is only time before Ethereum and Steem pass BitCoin.

You should start watching Stratis, if you aren't already. Was at .19 cents in February, now it's over $9

Great article, this latest rise in ether prices also seems to be having a knock on effect on its cheaper cousin ethereum classic which to me looks like a good buy right now @ $22 usd it could be seen as undervalued. I have ether since it was bout $40 usd its been a great run with it so far!

Great post, re-steemed, upvoted and followed!

Having only got into crypto in the last few months it is amazing watching the incredible gains. Eth was one that we were considering not buying as the entry price. But we are glad that we made the jump now. We are holding our investment as I anticipate that this coin will exceed all expectations. It is exciting to log in each day and see the gains.

follow me plz ㅠ.ㅠ

I agree with your analysis. It's nice to meet a fellow trader you may want to checkout my channel. I am reviewing coins and giving tips myself. Up-voted and followed.

Both are growing fast.

Ethereum is going to $1000 and its going to get there sooner than we think!

I made a post asking if it is better to mine or buy ethereum at this point. Which is better in your opinions?

Mike, it's whatever is most profitible for your graphics cards to get the greatest return in YOUR LOCAL CURRENCY.
Have a look on https://whattomine.com/ to help determine this.

Each time you get a mining reward, deciding to invest that in a crypto coin is a separate decision.

For example, if you want more Zcash (ZEC); but it's more profitible to mine Ethereum (ETH), you're best of mining ETH, and selling it for ZEC.

I made a more drawn-out post about this here: https://steemit.com/mining/@rejoys/crypto-mining-as-an-investment

Also note: if your GPU has less than 3GB of RAM, you can't actually mine ETH directly, so you'll be looking at ZEC or some ETH clones, and selling them to buy ETH.

Thanks for the article. I love the way the very idea of Ethereum is beginning to sink in in much the same way as the vitality and usefulness of the internet itself took a little while for most people to "get"... but it's real and it's valuable to the entire spectrum of global culture. Definitely is here to stay...

Ethereum to $1000 soon!

Ethereum's price has mostly been fueled by the sheer value of all the ICOs conducted so far this year. The ether used to buy tokens in these sales are generally held back by developers in cold storage, effectively reducing the circulating supply.

The ethereum trade volumes have equalled that of bitcoins' in the past 2 days, probably because of the Bancor ICO which raised $150m (or 0.3 million plus ethers) . If trade volumes stay high even uptil next week then I am wrong. But bitcoin is much more liquid given the number of retailers who accept it and number of exchanges where it can be directly purchased for fiat. I don't think ethereum is as liquid yet. Bitcoin trade volumes should remain higher than ether for a while at least.

Given the last 2 years success, I think it is inevitable that Ethereum will overtake Bitcoin ("the filppening"). But the demand for ethereum will demand on whether ICOs manage to raise as much in the future as well.

I sold off my Ether stake at $414, although when Serenity is full implanted next year I think it really will jump.

So excellent chart and so many other positive things on Ethereum that I will get tired soon typing them all here. One of the best investments ever!

ETH is currently trending at $388.

happy that i got in ethereum when it was under $100...too bad i only got very little LOL..

Really good read, thank you.

Of course, it depends from the perspective we perceive reality. Bitcoin has already proven to be resistant to drops. The same thing can be said for Ethereum too. I think Bitcoin is still the leading coin, that opens the way for many other currencies. Bitcoin has in a brilliant way promoted the world of digital currency and mining, and it still does. We can say that Bitcoin has made a way for Ethereum too. Therefore, none of them is concurrent to the other, nor has a negative effect. As I said, it all depends from the viewing perspective.

  ·  7 years ago (edited)

Ethereum will undoubtedly take over the market cap of #Bitcoin, simply because there are more Ether than BTC.

Also, Ethereum has countless applications, while Bitcoin is simply a #Peer-to-Peer payment system. Here is a three-minute video from the creator of Ethereum to explain it's #capability:

#Ether is just getting started....

Ethereum is supported by the elites like Microsoft, JP Morgan, etc. Here i guess can be the reason.

i just wish i had some