Ethereum has been in the limelight in the recent weeks due to its sudden price increase and it reaching $4,000 per coin. In the recent weeks the market has taken a dip in general. The leading crypto favorite, Bitcoin has especially seen an unexpected dip after Tesla announced that they would stop accepting it as a form of payment. It’s currently sitting at around $40,000 per coin.
The reasoning was that it is not environmentally friendly due to the large amounts of energy needed to mine it. There have also been various tweets from Tesla CEO, Elon Musk adding fuel to the fire. Some people see this as a buying opportunity while the price is low but, others are questioning the future of the crypto market and also looking to alternatives to Bitcoin. That’s when attention fell on Ethereum. Lets take a look at what is considered the world 2nd most popular crypto currency.
Ethereum dates back to 2015. It the crypto currency is a product of the Ethereum network which is a decentralized blockchain network. It is very similar to Bitcoin but, it has some features that Bitcoin does not have. Such as its own programming language and people can use it to build apps on the Ethereum network. If you follow our blogs then you remember that we wrote about NFT’s a while ago. Well the emerging NFT market is running on the Ethereum network so that is bringing it more widespread attention from investors, the media and is adding to its price.
New Ethereum 2.0 Coming Soon
One thing to note is that there is already an Ethereum 2.0 that is in the works which will run faster and will be overall more efficient. One added benefit to this Ethereum 2.0 update is that it will now move to a proof of stake model to mine instead of proof of work which is currently in use. Graphics cards are used to perform the POW and this in turn has led to shortages in graphics cards and increased prices from resellers also less natural resources being used to make the cards. This seems like a very smart move ever since the issue of sustainability has been brought up.