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3 Cryptocurrency Investments to Capitalize on the Bitcoin Craze

Forget Dow 20,000 -- it's bitcoin that breached a long-awaited threshold

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Cryptocurrency Investments: Ethereum

Cryptocurrency Investments: Ethereum
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As the pioneer, bitcoin naturally grabs all the headlines. However, what I’d like people to realize is that the revolution is not just about any particular asset, but about the idea of truly free markets. According to CoinMarketCap.com, there are currently 643 digital currencies in existence. There’s even a “TrumpCoin” if that suits your fancy.

Of course, just like our traditional markets, not every cryptocurrency is a legitimate one. Most are probably garbage. But there are a few names that are gaining volume and acceptability, and ethereum is a prime example. With a market capitalization of over $920 million as of this writing, ethereum is the second-biggest digital currency. Another validation is that Coinbase — one of the most respected names in the industry — only offers bitcoin and ethereum procurement.

But how is ethereum fundamentally different from its predecessor? From an investment point of view, not much. The value of ethereum derives from standard supply and demand dynamics. But its core contains what is known as a smart contract — “scripts of code that can be deployed in the Ethereum blockchain.”

Against a practical framework, these smart contracts potentially offer even greater retail convenience compared with what we are already accustomed. According to The New York Times, one ethereum application in development “would let farmers put their produce up for sale directly to consumers and take payment directly from consumers.” That puts a new twist on the farmers’ market concept!

This also means that ethereum may be the worst fear of lawyers. Imagine conducting business, or fulfilling contractual obligations without the need for expensive legal fees. In theory, breach of contract cases would sharply decline because if there indeed is a breach, the ethereum network will not process payment.

Anything to make life simpler is a plus, which makes ethereum deserving of a second look.

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Article printed from InvestorPlace Media, http://investorplace.com/2017/01/cryptocurrency-investments-capitalize-bitcoin-craze/.

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