My Thoughts On Ethereum

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In this video, I share my thoughts on Ethereum and the pros and cons of Ethereum investment, as well as address questions like:

What is Etheruem? What does Ethereum do? How does Ethereum work? What’s the difference between Bitcoin and Ethereum? Is Ethereum better than Bitcoin? What are smart contracts?

I’ll even share how you can earn extra passive income with Ethereum, if it’s a fit for you.

So what is Ethereum (what is Etheruem / what is Ethureum / what is Ehtereum)? And what does Ethereum do?

Ethereum is considered a cryptocurrency, which is a type of digital money that’s created with cryptography.

Ethereum was conceived in 2013 by a young Russian-Canadian computer scientist, Vitalik Buterin, who looked at how Bitcoin’s blockchain worked and realized that blockchains could do more than just record transactions. Blockchains could run code, store data, host apps and do pretty much any kind of computation.

So Ethereum is much more than a type of money. It’s an open- source platform that anyone can build on top of.

For example, you can create mini apps or automated systems called “smart contracts.”

You can bundle smart contracts together to create apps that live on the Ethereum blockchain. Since these are decentralized apps, they’re called Dapps.

The first and possibly most popular Dapp is Cryptokitties, which is a game for breeding virtual cats.

You might have heard of NFTs lately since they’ve been gaining in popularity. What are nft tokens? NFT stands for non-fungible token and most of these are hosted on Ethereum’s blockchain.

Each Crytokitty is a non-fungible token, which means that it’s unique and not interchangeable with any other Cryptokitty.

In the last year or so, Dapps for automating financial services like lending or borrowing without needing a traditional third party like a bank have been getting a lot of attention as part of the DeFi movement, which stands for “decentralized finance.”

So what’s the difference between Bitcoin and Ethereum?

Ultimately, the purpose or intention behind each of these is very different.

Bitcoin was created in response to governments manipulating the money supply and it’s intended to be an alternative form of money.

Ethereum was created to be an operating system for all kinds of custom programs, apps and digital assets.

How does Ethereum work?

Ethereum is the whole blockchain network that all this stuff is created on top of.

Ether is the actual currency or money part that makes stuff work.

Bitcoin or Ethereum which one is better?

Better for what?

In terms of just the growth potential, from September of 2019 until the day I’m recording this video, Ethereum has been outperforming Bitcoin… meaning it’s been going up faster.

So here are my thoughts on Ethereum and the pros and cons of Ethereum investment as I see them:

If Ethereum is outperforming the overall stock market AND outperforming Bitcoin, then it gets my attention and makes my short list of potential investments.

I think Ethereum is super useful because of all the cool stuff it can do with smart contracts and decentralized apps.

And I’m excited about what’s possible for Ethereum in terms of the whole decentralized finance movement.

On the other hand, like all cryptocurrencies, there’s a lot of price volatility and the whole crypto world still feels like the “Wild West.”

And maybe I’m just being paranoid, but I still get concerned about shenanigans like exchanges getting hacked.

Overall, I feel comfortable having a small percentage of my money in Ethereum that I’m willing to lose if something crazy happens.

If you’d like to see my video on my thoughts on Bitcoin and what I see as the biggest pros and cons of Bitcoin investment, click here

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NOTE: Penelope Jane Smith will receive an affiliate commission or referral bonus from some of the links and other products that appear in this video. Penelope Jane Smith is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.