What is Ethereum (ETH)?
Surely some of you know what the Ethereum blockchain is, others, on the contrary, do not even have the slightest idea about it. Over the five years of its existence, Ethereum has become the second largest cryptocurrency in terms of capitalization.
In 2021 Ethereum price growth continues, which means that Ethereum remains an increasingly attractive investment tool.
Ethereum is a decentralized platform where the smart contracts,i.e. the applications that work in strict accordance with the algorithm without the possibility of stopping, censoring, falsifying or interfering by the third parties, are launched. In the Ethereum protocol and ETH blockchain, each operation has its own cost. In order to carry out transactions or perform an operation on the network, you must consume or burn Gas. Ether is used as a payment for computation and transaction time.
Ethereum is a platform that aims at helping people easily create decentralized applications (DApps) via blockchain technology.
Ethereum is the foundation for building an alternative, digital financial system which can be completely independent and open. Any new financial system needs its own currency in order to function. Financial applications operating in this environment require an independent asset that is not controlled by any public or private institution in order to act as collateral. Ether (ETH) is the only fully independent asset on Ethereum platform and it can perform different functions, being simultaneously in different aggregate states. This makes ETH the best form of money that humanity has ever invented.
Among numerous Ethereum news on how to buy Ethereum which are constantly appearing on the cryptocurrency market, online crypto exchanges, exchange services and making hand-to-hand purchases remain three the most popular ways to do it.
- Crypto exchange services are the most common and easiest way to buy Ethereum, Bitcoin or other cryptocurrencies for "classic" or digital money. You can pay for your purchase using a terminal, bank card, Visa or Mastercard payment system. Exchange services work for a commission which on average varies from 3% to 20%. In rare cases, an online exchange service can deceive you and leave you without money. To avoid this kind of situation, choose reliable and proven services with a good reputation and honest work schemes. Godex.io online exchange service has a number of advantages over its competitors such as users` anonymity, absence of registration and exchange limits, a fixed rate until the end of the transaction, and a high level of security.
- Cryptocurrency exchanges are a more "serious" and specialized tool for trading. These sites are inferior to online exchange services in terms of exchange speed, simplicity and security. They are more suitable for professional traders: it is convenient to track rate fluctuations, study analytics there.
- There are many offers on the Internet from individuals who are ready to sell you Ethereum for cash or wire transfer. You can even find a person who will agree to exchange Ethereum without commission. But this cannot be considered an advantage as fraudsters may stand behind any such ad.
Circulation of Ethereum
For five years now, Ethereum has confidently held the second position in the top 5 most sought after cryptocurrencies in terms of market capitalization which is used as an indicator of the dominance and popularity of a coin. On February 18, 2021, the price of Ethereum renewed its all-time high at $ 1,900 while its market capitalization reached $ 218 billion. The exchange rate fluctuates every day. The rise in ETH quotes has led to an increase in the cost of transaction fees on the network. Now this indicator is at the level of about $ 20, while making transactions on decentralized exchanges that operate on Ethereum basis costs $ 100 or more. Ethereum prospects, as well as the historical development of the entire ecosystem, look very solid. Almost half of the tokens which are in the top 100 cryptocurrency list are based on Ethereum technology.
Many experts say that ETH rate will overtake the BTC rate. But the majority of them believe that this is impossible in view of the endless ETH circulation. However, the upcoming Ethereum 2.0 update will turn everything around Ether upside down. At the very least, the introduction of a new level of anonymity and the transition to Proof-of-Stake (POS) can put an end to the free ETH circulation, since the US Securities and Exchange Commission may consider the new type of Ether as securities. If the Commission really does target Ether, it can seriously harm the rise in its price.
Can You Mine ETH ?
Ethereum cryptocurrency remains the most profitable cryptocurrency for GPU mining.
The peculiarity of the process lies in the young age of the cryptocurrency and the large number of prospects. At this stage, it makes sense to start the Ethereum mining process with solo mining without specialized equipment. You don't have to purchase multiple PCs or graphics cards in order to earn Ethereum. The negative side of the process is the complexity of working with the command line, as well as with the withdrawal of the extracted money to an electronic wallet. Ether is mined via video cards, a processor, or both.
You can use any video card for mining, even your own one, without additional installations, provided there is at least 2 GB of free RAM. It is important that the load on the processor does not exceed the earning capacity. In order to improve the efficiency of your PC, you can combine two video cards using the CrossFire technique.
The complexity of the process of mining cryptocurrencies lies in the fact that independent mining loses its effectiveness over the development of the cryptocurrency. Solo mining is ineffective due to the appearance of a lot of competition and blocks in the process. When a block appears, one PC with a high power will not be able to unravel it and obtain cryptocurrency. Therefore, several PCs are combined into pools, and joint industrial production of Ethereum takes place.