Why is Ethereum Dubbed as the Digital Silver?

Posted 2 years ago in ECONOMICS & TRADE.

Ethereum is sometimes referred to as the “Digital Silver” because it is similar to the precious metal in many ways, including its versatility and how it can be used for a variety of applications.

Why is Ethereum Dubbed as the Digital Silver?

Ethereum is sometimes referred to as the “Digital Silver” because it is similar to the precious metal in many ways, including its versatility and how it can be used for a variety of applications. While 

Bitcoin is perhaps better known and has risen dramatically in value over the past several years, Ethereum has also been growing in popularity and is one of the leading cryptocurrencies in the market today including LUNA. Which is also becoming known resulting in increasing LUNA 2.0 coin price.

Despite its growing importance, many people are still unfamiliar with Ethereum. The digital currency operates differently than Bitcoin, and most experts believe that eventually Ethereum will overtake its predecessor as the world’s most popular cryptocurrency. 

Learn more about why Ethereum is being called digital silver now.

What is Ethereum?

Ethereum is a public, open-source blockchain-based distributed computing platform featuring smart contract functionality. It was proposed in late 2013 by Vitalik Buterin, who described it as a "decentralized mining network and software development platform rolled into one."

Ethereum can be used to codify, decentralize, secure and trade just about anything: voting, domain names, financial exchanges and pretty much everything else. The applications are wide ranging — from making back-office operations more efficient (legal documentation) to providing data security for online transactions; from streamlining supply chains to facilitating the use of renewable energy for electric grids.

Ethereum As The Digital Silver

Ethereum is currently dubbed as the digital silver, while Bitcoin is dubbed as the digital gold. It's because Ether has a bigger supply of currency and is less valuable than Bitcoin. Ether also has no hard cap (unlike Bitcoin), which means that it can be mined forever, just like silver.

Ethereum was dubbed the “digital silver” by some of its early investors and proponents, who have been pushing it as a complement to bitcoin. In the same way that gold is rarer than silver, and therefore considered more valuable, 

Ether's value lies in its usefulness to execute smart contracts. Ethereum has a different use case than Bitcoin, and so it makes sense that Ether is more valuable than Ether Classic. While bitcoin is an online currency for an online world, ether is the fuel that runs decentralized apps and smart contracts.

Ethereum and ether’s advantages over bitcoin

 

So what are the advantages of Ethereum over bitcoin?

 

One reason to like ethereum is its flexibility. The Ethereum network allows developers to build their own applications and use ether tokens to pay for them. In theory, you could start your own ethereum-based social media platform, but you would then have to use ether tokens instead of U.S. dollars to buy ads on your site or get new members.

 

Another reason to like ethereum is that it’s much cheaper than bitcoin. One ether token costs less than $10 USD right now, while one bitcoin costs more than $1,000 USD. This means people can send ether tokens for significantly less than it costs to send bitcoins. 

 

This makes ethereum more practical for small transactions like buying items online or tipping a friend, since you wouldn’t have to worry about paying a large fee for sending your friend a few bucks via an app (unless you're using Venmo).

Ether’s rise following bitcoin’s upward path?

Ethereum’s price has risen by more than 50% in the past month, and it is expected to continue increasing.

Ethereum has been an active player in the cryptocurrency market since its launch in 2015, but it wasn’t until June 19th, 2017 that it became one of the most valuable cryptocurrencies on Earth. The initial value of an Ether was $12 and within a few months rose to $400.

In 2018 alone, Ethereum's value increased by over 6,000%. Ethereum also led other cryptocurrencies because its team had created a new standard for building decentralized applications (dApps). In fact, many people believe that ETH will become one of the major cryptocurrencies in future years if not already today.

The Future of Ethereum as the 'digital silver'

Now that we've gotten a basic understanding of what Ethereum is, the next question is: what does its future look like?

Ethereum has an incredibly bright future ahead of it. The platform has been able to solve many problems through its smart contracts technology that are facing other blockchains today, and as such will continue to be a crucial part of the ecosystem at large. 

The fact that ETH has so far remained on top of other cryptocurrencies also helps cement its position as one of the most popular cryptocurrencies in existence right now.

As for ether and digital silver, their outlook seems very promising too. With more people getting involved in cryptocurrency trading every day, there's no reason why these two should stop being valuable investments anytime soon.

Conclusion

Ethereum is a revolutionary blockchain technology that is aimed at changing the way we do business. It has been touted as “the next big thing” since its inception in 2015, and it has proven to be just that. Ethereum offers many benefits over other cryptocurrencies like bitcoin and trading pairs including ETHUSDT, but what really sets it apart from other coins is its potential use cases beyond just being an investment vehicle or a store of value. 

In fact, there are hundreds of ways in which developers are using the Ethereum platform today—and those uses will only continue growing as more people learn about this open-source software. As such, we think Ethereum will continue being one of the most talked about cryptocurrencies for years to come.

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abdullah ashraf

Living in Pakistan

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