Disclaimer: The information in this blog represents the opinions of its author and is for educational purposes only. It is not intended as investment advice. Cryptocurrency markets are extremely risky so you should only invest money you are willing to lose.
Ethereum is the cryptocurrency that is widely perceived as an investment in blockchain technology itself. The platform is designed for building custom blockchains and smart contracts.
Top Performing Asset
So it's no coincidence, with all the hype around blockchain, that it also happens to be the best performing asset of the year, with a return of 60x since January 1st.
We've been watching ETH carefully as it remained stuck in a trading range below $350 throughout September, October, and November, while bitcoin crushed new high after new high on a runup from $2900 to $8700.
We've been patiently waiting for the #2 cryptocurrency to make its move and resume its historic uptrend.
ETH Did Not Disappoint
We were not disappointed. In our blog post of Nov. 20th (see chart above), we reported on 4 key factors indicating that ETH was in the midst of an upside breakout:
- Investor confidence reflected in the price bounce after the Parity wallet fiasco
- Definitive price breakout above $350 for the first time since sept. 3rd
- Rising trendline
- Confirming momentum indicators
Don't You Wish...?
If you had taken our advice and jumped into ETH in the $360 range, you'd be sitting on a cool 33% gain in less than 5 days as the cryptocurrency rocketed to $488 on Nov. 24th.
The Truth Is In The Math
Blockchain technology exploits the asymmetry of cryptographic math to build a revolutionary kind of database that is esay to verify but nearly impossible to alter, fake, counterfeit, or corrupt. Mathematical verification means that there is no need for a trusted 3rd party to serve as the enforcer or keeper of truth. The truth is right there in the math and no hacker or computer can change mathematical truth.
Self-Verifying Data, Self-Enforcing Contracts
Ethereum (it's actually called "ether") is the native cryptocurrency that powers the ethereum network - one that allows anyone to build their own blockchain. Self-verifying data is only part of the magic of blockchain. The ethereum network is also designed to facilitate the creation of smart contracts which, like robot lawyers, can automatically execute the terms of complex agreements when specific conditions are met.
The highest value blockchain and smart contract applications have yet to be imagined and developed, so there is plenty of room on the upside for the #2 cryptocurrency, whose market capitalization now stands at $45 Billion.