You've probably heard of Bitcoin by now — the peer-to-peer payment method powered by users, with no central authority or middlemen (like a bank or PayPal).There's a new hotshot in town, though, giving Bitcoin a run for its money: What is Ethereum, and why should you be paying attention to it?Like Bitcoin, Ethereum is a digital currency that you can use to pay for things online, trade money, and buy and sell anyplace that accepts it.The cryptocurrency been sneakily creeping up on Bitcoin while no one was really looking.In fact, it's currently getting nearly as much business, although it's not as big in terms of its monetary value as Bitcoin (which had a value higher than gold at one point this year).Ethereum is similar in nature, but a bit more complicated.While Bitcoin might be more widely known, Ethereum is unique in its own right.It runs on something called a smart contract; and long story short, it uses an "if:then" system, meaning that Ethereum can be traded only if a certain condition is met.

This smart contract is something Bitcoin doesn't use.This means that, for example, you could use it to place a bet on a sporting event like the Super Bowl, and set it to pay if a certain team wins.Another cool application, as Mashable and the HuffPost point out?Platforms like Kickstarter and GoFundMe charge fees; with Ethereum, you could use it so that your money is taken only if a project's goal is reached, without fees.In other words, Ethereum could replace a lot, and its potential is huge.And while it isn't the only alternative to Bitcoin, other cryptocurrencies don't really give users much of a reason to switch over — until Ethereum came along.The new currency is making things possible that previously weren't even imaginable.Notable is what Ethereum would mean for the control we have: it would return to us the control we used to be able to exercise over our own information, and combine it with the easy-to-access quality we're used to our information having today.Currently, apps rely on the company or a third-party service to store all of your information — credit card numbers, personal data, etc. Heck, even your choice of apps is controlled by third parties, who decide what you can and cannot download.

Now, imagine these servers being replaced by something that lets you offer and purchase services and keep control of your data.That's Ethereum.As with most things in life, there are risks.If something bad were to happen with Ethereum's smart contract, the consequences could be catastrophic.Money could disappear and there'd be no way to get it back.But the likelihood of that happening?There's also the erratic value to consider: for instance, in March, the price of Ethereum doubled and has been jumping around since.If it sounds complicated, that's because it is.Regardless, keep your eyes and ears open, because a new cryptocurrency is making a name for itself.Cryptocurrency’s “Other” Big Winner Signals Sector’s Emergence As Ethereum Price Goes Ballistic By Benjamin A. Smth It’s not just Bitcoin anymore.Digital currencies have another big winner now, Ethereum (ether), and it’s more than just good news for early investors.The Ethereum price explosion ultimately signals digital currencies aren’t just flash-in-the-pans; they are morphing into legitimate alternative assets nudging their way into the mainstream.

Arguably, the biggest proof of cryptocurrency transcendence has been the upswing in institutional involvement.This is the “smart” money that generally calls trends correctly.It’s one thing for mom & pops investors to move the needle higher in a limited way, as was the case with early adopters.It’s quite another for price and volume to skyrocket in unmistakable fashion due to billions in cash infusions by institutions investors.bitcoin mining sslBeyond the obvious price appreciation, institutional participation also signals a deeper confirmation of the long term viability of the asset.litecoin mining with bitcoin asicIt tells us all those multinational and governmental pilot projects worldwide are yielding positive results.best litecoin asic miner

Our bitcoin price forecast foresaw the growing sector institutional interest gathering on the periphery.And aside from the conservative nature of the forecast, our prophecy was dead-on.Frequent CNBC cryptocurrency analyst Brian Kelly has recently suggested Bitcoin’s May 2017 surge past $1,500 was the result of greater institutional demand – particularly from Japan.“The biggest driver right now is you’re starting to see institutional investors take a keen interest in the entire sector,” said Kelly, who himself has launched a digital asset fund for outside investors.bitcoin nutzer deutschlandLikewise, CoinDesk research analyst Alex Sunnarborg attributed Bitcoin’s price explosion to a spike in global trading volume, particularly from Japan.bitcoin sweden tax(Source: Bitcoin jumps to a record, nears $1,500 on a spike in demand from Japan, CNBC, May 2, 2017) It’s now quite apparent the same institutional interest dynamics buttressing Bitcoin prices have migrated to Ethereum.bitcoin saint petersburg bowl

In hindsight, the reason seems obvious: if you believe in the long-term viability of cryptocurrency sector, it stands to reason multiple “winners” will emerge, as opposed to just one.With a maximum of 21 million Bitcoins that could ever be in circulation, it’s clear the market could support other alternatives.Clearly, institutional investors have crowned Ethereum next in line.Early indications of a powerful surge in capital flows could be seen back in March 2017.Vice president for Genesis Global Trading, Martin Garcia, noted that they “started to see institutional investor interest pick up in ethereum, something we hadn’t really seen before.” While other industry gatekeepers noted high-net worth trading in ethereum has picked up considerably.(Source: Ethereum’s Price Surge is Sparking Institutional Investor Interest, coindesk, March 17, 2017) To demonstrate how powerful institutional-infused investment capital has elevated the Ethereum price, one only has to glean a 2017 daily chart.

Prices have entered full mania mode, jumping from just over $8 at the beginning of 2017 to $265 as of this writing In percentage terms, that’s an increase of 3,171% in only half a year!Bitcoin’s percentage gain is more modest due to the law of large numbers, but impressive nonetheless.It began 2017 trading around $1,000 in USD terms, but has jumped to $2,820 as of this writing.That’s an increase of 282% which makes it hands-down the top appreciating recognized “currency” in the world.The last time investors witnessed these types of frenzied moves was during the late 1990’s Tech Bubble.Once institutional money got involved, “modest” moves in equities (pennies to single digits) turned into a full-blown mania (single digits to triple digits; quadruple digits in some cases).A considerable washout of excesses occurred, but the internet winners went on to soar in price to new heights.We expect the same dynamics are at play with cryptocurrencies today.At these nosebleed levels, investing in ether is not for the faint of heart.

As mentioned, prices have increased over 3,100% year-to-date and show no signs of abating.In terms of timing, the low hanging fruit has already been plucked.I would imagine it’s almost impossible to stake a significant position at these levels, no matter how bullish your long terms sentiments are.But that doesn’t mean you should forget about it either.Rather than focusing on incredible short term price movements, mindsets towards ethereum future value predictions should instead shift to a long term perspective.While the “easy” early-adopter money is gone, we may be only entering the third inning in terms of overall ethereum price outlook.Because even after this incredible run, total market capitalization is only around $23 billion.For perspective, if Ethereum was a stock, it’s overall value would barely crack the top 300 issues in the S&P 500.With all the business and transaction potential amassing down the pike, ethereum will deservedly command higher valuations than many obscure companies ahead of it should its potential be fulfilled.

The last part of that sentence will ultimately tell the story.The Ethereum vs bitcoin debate really comes down to which cryptocurrency is perceived to hold the longest term value.Strong arguments can be made either way, but from our perspective, ethereum has some important characteristics which give it a competitive advantage.The first of which relates to transaction times.It currently takes about 12 minutes on average to confirm a Bitcoin transaction, while it takes Ethereum is only around 12–15 seconds to do so.Ethereum’s “GHOST” protocol can process greater data loads and in greater speeds than Bitcoin’s peer-to-peer cryptographic protocol.This advantage cannot be understated.Secondly, Ethereum has the ability to run “smart contracts,” which are code functions which can handle legal functions, data storage, information processes and more.Bitcoin, not so much (although this may be changing soon).This gives Ethereum the prime advantage of added utility over just being a currency.