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Three Reasons Why Ethereum Will Change the World

Raymond’s take: Just like Bitcoin, Ethereum will change the world as we know it.

If you have dabbled in cryptocurrencies or read about decentralised applications, you have most likely heard about Ethereum. 

If you know about Ethereum and are aware of its implications on the world’s payment and financial systems, then you may know much of what I am going to write about. But if you haven’t heard of Ethereum, I will give you three reasons why I am very confident the cryptocurrency and its decentralised, open-source blockchain are set to change the world just as Bitcoin did. 

Most importantly, I will share my long-term view on the future price of Ethereum. 

Ethereum Payments Are Private and Secure

The Ethereum network shows more promise than Bitcoin because of its real-world applications and its ability to store value. It also represents the future of programmable money and smart contracts in a way that Bitcoin simply cannot. 

While Bitcoin is the first original cryptocurrency, it can be argued that Ethereum was blockchain technology’s true first mass-market application that could be used by global businesses, small and medium companies and consumers around the world.

Because the Ethereum network supports the development of and allows the creation of new applications on its infrastructure by anybody who has an idea, many people have used it to create payment systems. We have seen this explode with the booming popularity of NFTs and saw Ethereum’s utilisation rate reach more than Bitcoin in the last 12 months.

One of the key reasons that people enjoy using the Ethereum blockchain for payments is because it's private and decentralised. If you use credit cards or debit cards to make a transaction, corporations will have your information and can use it to sell it to other parties or find ways to market more products and services to you. 

With Ethereum, privacy is embedded in the system, and you are simply a long string of numbers where capital flows in and out of in a completely safe, secure and decentralised manner. With Ethereum, you never have to worry about somebody selling your personal information. You are safe and sound. 

Ethereum Allows Anyone to Build on Its Blockchain Programs

The Ethereum Foundation invites developers all over the world to work on their blockchain technology and create decentralised applications (Dapps) that can accomplish many different tasks. On their website, their mission statement is clear:

"The Ethereum Foundation’s mission is to promote and support Ethereum platform and base-layer research, development and education to bring decentralised protocols and tools to the world that empower developers to produce next generation dapps, and together build a more globally accessible, more free and more trustworthy Internet."

Ethereum’s mission is just beginning. According to the crypto app tracker, State of the Dapps, there are over 3,000 decentralised apps currently running on the Ethereum blockchain. These developers can also apply for grants for their projects, as UniSwap did, the world’s largest decentralised exchange.

Many of these applications on the Ethereum blockchain platform are already changing the world by inventing new ways to transfer property, funds, debt, equity and even create multi universes—all in a safe and secure fashion. 

The Rollout of Ethereum 2.0 Will Change Everything

Right now, we are in the Ethereum 1.0 world, which was great for its time, but is now congested with too many transactions, difficult to scale, and uses outdated technology in minting new tokens and making transactions.

That is why the Ethereum Foundation is in the process of rolling out Ethereum 2.0. The upgrade could potentially be the game changer the world needs to make cryptocurrency usable for everyday people for payments and banking services. 

First, the environmental impact of Ethereum 2.0 is much less than the first one. Currently, the demand for immense electricity is the core part of Ethereum’s Proof-of-Work mechanism. The problem is, Proof-of-Work demands more and more electricity over time. Ethereum 2.0 will slash the network’s energy consumption by at least 99.95% by shifting to a Proof-of-Stake mechanism. 

Source: The Ethereum Foundation

Second, Ethereum plans to significantly increase the number of transactions it can handle per second to about 150,000 by the end of 2021. The Ethereum upgrade will definitely reduce congestion of the network leading to a major reduction in gas fees.

Finally, Ethereum 2.0 will support thousands of dapps and other scalable applications for thousands of users. 

I am confident that the improved infrastructure along with the growing DeFi community could lead to a major increase in the price of Ethereum over the long-run, especially as institutional investors continue to get involved. 

What Should You Do?

If you believe in the potential and future growth of Ethereum blockchain, like I do, then you could take some of your disposable income every month and invest it in Ethereum. This is what you call dollar-cost averaging (DCA).

When you dollar-cost average, you invest equal dollar amounts in a crypto at regular times every month rather than attempting to time the market, you buy in at a range of different prices.

With this method, you will regularly accumulate more Ethereum, and in the long-run, I believe you will be in a great position. 

Most importantly, you will help contribute to a more fair, secure and transparent financial system. 

Edited by: Baron Laudermilk

This article has been prepared by Cabital Fintech (LT) UAB  (the “Company”) and is general background information about some of the Company’s activities at the date of this presentation.

This article does not contain all the information that is or may be material to you and should not be considered as advice or a recommendation to you in respect of the holding, purchasing or selling of digital assets and does not take into account your particular objectives, financial situation or needs. This article has been made to you solely for information purposes. This presentation may be amended and supplemented as the Company sees fit, may not be relied upon for the purpose of entering into any transaction and should not be construed as, nor be relied on in connection with, any offer or invitation to purchase or subscribe for, underwrite or otherwise acquire, hold or dispose of any digital assets, and shall not be regarded as a recommendation in relation to any such transaction whatsoever. The contents of this presentation should not be considered to be legal, tax, investment or other advice, and you  should consult with your own counsel and advisers as to all legal, tax, regulatory, financial and related matters concerning an investment in or a disposal of such digital assets and as to their suitability for you.

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The information in this article has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the presentation and the information contained herein and no reliance should be placed on it. Information in this article (including market data and statistical information) has been obtained from various sources (including third party sources) and the Company does not guarantee the accuracy or completeness of such information. 

Raymond Hsu

CEO of Cabital

Raymond’s 10 years of experience holding leadership positions in fintech companies and banks inspired him to democratise digital currency financial solutions with Cabital.