Market Watch: Bitcoin 2.0

Corbis Documentary / Erik Tham

Corbis Documentary / Erik Tham

The crypto-currency market is emerging in the 21st century due to the surge in technological advancements. Physical currency is a thing of the past due to its security issues, like the ease of its theft, and the waste of nonrenewable resources, like copper and other metals. These crypto-currencies are tracked, counted and placed in the market just as their predecessors, but are more reliant on things like cyber security and firewalls to protect their assets. In response to transactions that would normally be recorded on a business’ ledger, blockchains are chronological and linear public records of all transactions made with crypto-currencies.

Bitcoin was the first real shot for the market to transition to these crypto-currencies and had a large influx in the market when introduced, but ultimately failed because it was not fun or easy to use, faster to transact, or insured. Their blockchain was flawed as well, resulting in poor record management and overall poor use of the currency. These small yet influential facts created a volatile market for the Bitcoin and eventually resulted in its undoing. However, a more recently revised, debugged and solution-based crypto-currency has seeming taken its place and been deemed “Bitcoin 2.0” due to its similarities in market spikes in its emergence. Conversely, Ethereum’s blockchain technology allows for businesses to build applications without having to build their own blockchains. Those applications can interact with each other, creating a library of useful functionality with shorter block times to create more feasible applications. The Ethereum blockchain will transition, affecting the security of the blockchain and its value.

Recently, a user stole around 50 million USD worth of Ethereum but was unable to transfer it into real, tradeable currency. This crypto-currency is not frozen in that user’s account while Ethereum and its users decide what to do next to stabilize the market and their investors. A vote was recently held to decide whether users were in favor of a hard fork, the rewriting of the Bitcoin protocol, so that only newly accepted users are able to utilize the program’s features. The vote was accepted by a margin of 94 percent. With numerous deadlines, the first beginning with the implementation on the 21st of July, founder Vitalik Buterin believes the easiest part is the hard fork. Once the hard fork is enacted, the coding surrounding the Ethereum coin that was stolen will need to create a pathway through several blockchains. These pathways are like roads for the crypto-currency to follow and eventually make it back to the bank of coins. Through implementation, businesses are likely to download the upgrade within hours of its release, while independent users may take a little longer.

This event may have initially hurt the prospects of this specific crypto-currency, but will eventually level out with the success of the hard fork. Through its success, Ethereum will entice new investors with its proven security and the ability to insure its users’ currency. The developing market for these crypto-currencies show consumers how effective for inter-business usage they can be. For such large entities, the growth and ease as you progress into the program with use is essential. This aspect allows businesses to invest and divest with ease, giving the ledger more information to work with and creating a database for Ethereum to manage. Once that information is managed properly and sorted through the proper blockchains, the business will have an easier time both navigating and storing information such as currency. Once they program has this information stored, it becomes self-sustaining and compatible for inter-business use. Currency may be traded between companies at will and with a beefed up cyber secure network.

Individuals have the potential to invest in a revolutionary technology with the potential to impact a whole spectrum of industries. The developers for Ethereum utilize state of the art coding technology in their programs. With the second largest market cap after Bitcoin and one of the most popular crypto-currencies in terms of volume, Ethereum is what investors refer to as “the next big thing”. Since its emergence in July of 2015, Ethereum has raised beyond its projected market value. The current market cap is over 800 million dollars while the individual coin price is around 10 dollars. It is able to represent financial agreements like contracts, swaps or coupon-paying bonds. In these electronic representations, users will have all the features of current options, but with the ease of immediate use.

Overall, Ethereum is an emerging venture you would hate to miss out on with high security and low cost of investment.