Ethereum has skyrocketed in recent times. (Source: CNBC) Price hits all-time high According to Coin Metrics, Ethereum (also known as Ether) reached an all-time high of $4,196.3 at 12:15 p.m. on May 10. The value of Ether is up nearly 7% in the past 24 hours and is currently at $4,141.99. The total market capitalization of this coin is $476.3 billion, almost half the market capitalization of the world’s largest digital currency – Bitcoin ($1.1 trillion). With the new milestone just set, the price of Ether has increased 5 times from the price of $ 800 at the beginning of 2021. Compared to the same period last year, the price of Ethereum has increased about 20 times in just 1 year. . Ether was founded in 2013 by Russian-Canadian programmer Vitalik Buterin and several other crypto entrepreneurs. Similar to Bitcoin, Ether operates on the Blockchain technology platform. The biggest difference between Ether and Bitcoin is the intended use and core technology. Ether was created with the goal of becoming a platform for smart contract development. Ether serves as a means of paying for the network’s operating costs. Meanwhile, Bitcoin was born with the sole purpose of becoming a means of payment and a store of value. For programmer Buterin, Bitcoin is too limited in functionality. In an interview with Business Insider , founder Ether compared Bitcoin to a pocket computer that “does one thing well,” while Ether is like a smartphone with many apps. Ethereum is not perfect yet However, according to the page CNBC , Ether is not perfect yet. In 2017, the popularity of the game CryptoKitties caused Ether’s network to become severely congested, slowing transactions and causing game developers to raise fees. Scalability is one of the biggest problems with the Ether network today. This cryptocurrency currently works using a proof-of-work protocol (a mechanism that prevents double-spending), similar to Bitcoin. This means that cryptocurrency miners with purpose-built computers must compete to solve complex mathematical puzzles to validate transactions and get the miners’ networks to “mine”. Electrons must consume huge amounts of energy. But Ether is currently “running” an ambitious upgrade called Ethereum 2.0. Specifically, the cryptocurrency moves to a proof-of-stake model and relies on investors holding Ether to process new transactions. Cryptocurrency investors say the upgrade will help the Ether network run at scale, process more transactions at faster speeds, and support applications with millions of users. This can also lead to short-term price increases. However, some experts are still skeptical and refuse to trade digital currencies like Bitcoin and Ether. The latest volatility of the world’s top two cryptocurrencies reminded them of the 2017 crypto bubble, during which Bitcoin surged to a peak of $20,000. But a year later, it “sloped” down to $3,122. Some cautious investors say that the cryptocurrency is in a bubble waiting to burst. What do experts think about Ethereum and Bitcoin? Ed Egilinsky, CEO – Head of Alternative Investments at Direxion said: “Ethereum’s blockchain technology has more uses and functionality than Bitcoin, making it a potentially lucrative game in the long run. Also, at the present time, the price difference between Bitcoin and Ethereum could make Ethereum an ‘affordable’ investment for investors.” “Ether is a blockchain platform that acts like the Apple and Android app stores,” said Pat LaVecchia, CEO of trading platform Oasis Pro Markets. Meanwhile, Bitcoin is a commodity like gold, or a store of value. Unlike Bitcoin, where many properties (such as supply) have been fixed since its inception, the Ethereum platform is still evolving with new updates that promise to improve the system. It’s even entirely possible that regulations change and cause the supply to drop, which will cause the price of Ethereum to continue to rise.” (according to CNBC, Business Insider)

Bitcoin and Ethereum are the two largest cryptocurrencies on the market today. Photo: Getty The days when Bitcoin was the only option for investors looking to get rich in the crypto market are now a thing of the past. Ether, the world’s second-largest digital currency, has just continued to set new records as interest in so-called altcoins continues to soar. Dogecoin, which was originally a joke, now has a market value of nearly $ 90 billion. For the majority of people, the 2 biggest cryptocurrencies still receive the greatest interest. Both Bitcoin and Ether had a great start in 2021, Bitcoin’s price doubled, Ether also more than quadrupled, compared with an 11% increase in the S&P 500 index. Where to invest in Ether Ether is the most commonly used token in the world, and Ethereum is also the currency that Microsoft Corp pays for in exclusive digital art (NFT) purchases and sales, which are causing the ‘ fever ‘in the market recently. Pat LaVecchia, CEO of trading platform Oasis Pro Markets, said, “Ether is a blockchain platform has the same role as the app stores of Apple and Android”. Whereas “Bitcoin is a commodity like gold, or is a store of value”. Unlike Bitcoin, where many features (eg supply) have been fixed since inception, the Ethereum platform is still evolving with updates that promise to help improve the system. It is even possible that regulations change and cause the supply to drop, which will drive Ether prices up. “Investors often see Ethereum as a growth investment, betting on a decentralized ecosystem that continues to evolve,” said Phil Bonello, research director at Grayscale Investments. Bitcoin investment case Although Bitcoin’s lead has weakened somewhat recently, Bitcoin now accounts for about 46% of the total crypto market cap, compared to almost 70% at the start of the year. However, according to crypto tracking firm CoinGecko, it remains the largest digital currency in the world with a market value of more than $ 1 trillion, compared with Ethereum’s $ 380 billion. Bitcoin is still the choice of big businesses. Tesla and MicroStrategy buys Bitcoin, not Ether. When Paul Tudor Jones or Ray Dalio talk about cryptocurrencies, they just talk about Bitcoin. Cornerstone Macro analysts have studied how Bitcoin and Ether prices played during a plunge. They found that when the Bloomberg Galaxy Crypto Index fell 20%, the downside risk for Ether was greater than for Bitcoin and vice versa. If you want to invest in both Anyone who wants to enter the crypto market needs to get used to the huge fluctuations of prices, even for the oldest and largest coins. In addition, this market has countless other risks such as the exchange can be hacked, the management suddenly tightens the management of this currency … Most mainstream financial advisers say that they do not encourage investors to put more than 5% of their portfolio in cryptocurrencies and also warn clients that they need to prepare themselves for the loss. . However, for those looking to get into the crypto space, old advice like diversifying your portfolios and hedging is always true. “Due to diversification opportunities among digital currencies, we should consider investing a small amount of them, rather than just Bitcoin alone,” advises Cornerstone analysts.