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Cryptocurrencies are skyrocketing for the few last months and they celebrate a great popularity among a huge audience. We no longer talk only about Bitcoin, but also about other cryptocurrencies. One of the most far-reaching ones is after BTC, Ethereum.

Bitcoin – One of the best investments of this decade

Cryptocurrencies can significantly help your business. As a long-term investment, they proved to be a fairly good option. In 2008, one unit of Bitcoin was worth only of a few cents, this year BTC already crossed a benchmark of 4700$. That still does not mean that there are not many stories about people who lost all their savings trying to catch the Bitcoin wave. From a more happy angle, there are also cheerful stories, one of them is about a man from Norway Kristoffer Koch who bought in 2009 BTC in the worth of $27. He forgot about this investment and in 2013 he found out that the coins are worth of $980k.

Looking at this perspective now, Bitcoin really was a good investment to choose in the past. That is, however, the past and we have to look into the future and decide for ourselves whether it is still a good investment. No matter the conclusion, Bitcoin and other cryptocurrencies are undoubtedly very different from classic currencies like American dollar or Euro.

Ethereum – New to the game, yet fearless

Ethereum is on the other hand fairly new cryptocurrency that is yet making its direction. At the beginning of Ethereum in August 2015, one coin cost about 3 dollars. In January of 2017, the price of the currency was about 10$. A few months later, on the 14th of July, the price skyrocketed to a new high that it has not seen before - 390$ was a price of one Ethereum coin. The cryptocurrency, however, couldn’t maintain this value for a long time and the very next day the price dropped by 20%.

Such extreme volatility of the Ethereum market is very common for cryptocurrency investing. The risk-to-reward ratio is therefore very similar to that of betting on horse racing. Extreme risk, but if you win, you win big.

Bitcoin VS Ethereum, Who has the upper hand?

Bitcoin is currently more popular. There are many companies and merchants who have no troubles with accepting BTC as a real payment for good or services. By that, the digital currency gains credibility and trustworthiness and more people are not afraid to use it as a regular payment method. Simply, because they believe that in the future they will be also able to pay for what they want. Every new technology takes some time before it becomes useful. Take, for example, phones or emails. Both of these technologies were ineffectual until someone else on the other side started using them as well. The usefulness of technologies is growing with the number of users who use them.

And it is no different with Bitcoin and other cryptocurrencies. The more people exercise them and believe in them, the more their prices can grow.

Bitcoin – So many questions with no real answers

Satoshi Nakamoto is known as the mastermind behind Bitcoin, but he never publicly appeared, not once. So it is not known who he really is or what are his intentions with Bitcoin for the future. We also do not know about any other real person working on Bitcoin software. BTC also have to face the inevitable fact that there is a coin limit that can be mined out. It is a gigantic mystery for everyone and the market how the Bitcoin price will react to it. Will the price grow because there will not be any more coins to mine? Or will it fall and another cryptocurrency will take the lead? There are many unanswered questions we might think about. But one thing is certain now, the current price of Bitcoin do not worry about them as it already tripled its price this year.

We know about you Vitalik Buterin!

Ethereum does not have a coin limit and even though it is a fairly new cryptocurrency, it is already showing a very promising future. Behind the birth of Ethereum stands Vitalik Buterin, so a real person (unlike from BTC). Buterin wrote the code and he regularly shows his face to the public and he discusses the development and problems of Ethereum. Just like Bill Gates or Elon Musk are the faces of their products they have created, so is Buterin. This fact gives the market reassuring tendency.

Other aspects that might influence prices of Bitcoin and Ethereum

The price of Bitcoin and Ethereum may also depend on the perfection of the software code. BTC has been with us for almost a decade, Ethereum on the other hand only for about 2 years. Even the most professional programmers can not predict all the situations that can happen until they actually happen. And especially these errors in the system can have a significant impact on the cryptocurrency market.

Investing in cryptocurrencies can significantly help your money situation and your business, but it is very far from a safe investment. If you are looking for a safe investment, put your money into the bank even though the inflation is actually bigger than the interest rate your bank will most likely offer.

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