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alexoppenheimoma (< 20)

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The new crypto-kid in town - Ethereum

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September 07, 2017 – Comments (0) | RELATED TICKERS: GBTC , BITCF

Having displayed interest over 5 years ago in all kinds of investments, funds and whatnot, Alex Oppenheim Omaha is still having it hard to imagine the world without cash. Don't get him wrong, as the concept of everybody not using paper/metal objects to negotiate some kind of trade is a bit foreign to him. Now, there is a new kid in town, and it is called cryptocurrency. While it is fun to imagine that is basically digital cash encrypted with hashes and smileys, we have to understand the concept behind this phenomenon and be prepared to handle the risks of such conversion.

Now, futurists envision the world free of physical cash, so this naturally means adopting a (new) system that will consumers to pay for their goods or services, right? Well, nowadays this is being pushed towards mobile payments with (perhaps some kind of bio-metric identification) faster and more secure protocols. And it is so far so good as it becomes more natural with each day, as almost smartphones, laptops or tablets seem to incorporate this kind of feature. The truth is, cashless payments have come to the prime position and "are simply more convenient" than using real money (you know the paper and metal denominations).

It is important to understand that digital currencies can (but might not) accelerate the push of establishing cashless societies. But, Alex personally has a number of questions concerning any positive (or negative) impact on financial stability. From a totally objective monetary and financial point of view, the current rise of cryptocurrencies is fairly uncertain and nobody knows why is that so. Yet, if you haven't been sleeping under a rock for the past month-or-two, you probably know that cryptocurrencies like soaring on the market and keep increasing their value. From all of the currencies, only 2 matter in this moment: Bitcoin and Ethereum. Their rise is making the shift (from a cash-dominated world) much easier.

Ethereum is in Oppenheim’s focus today... as it seems that the thunder for Bitcoin might be away any second now. Ethereum was first conceptualized in 2013 by Vitalik Buterin as an open-source platform that facilitates the development of next-generation decentralized applications. In non-fancy words, it is a Bitcoin alternative. Ethereum is currently becoming the second-largest cryptocurrency. This comes down to 2 major factors:

It has drastically increased its value, especially in the past few months. Since the start of this year, Ethereum has gone up for more than 5,000 percent.

Russia was recently looking for a country-wide cryptocurrency as part of their internal monetary strategy. Buterin, a Russian-native has met with President Putin and might have a solid contract behind his hands 

That means this currency, backed up with major Russian banks, will have an even bigger market share. This is significant as we might be seeing the next Bitcoin in its infancy here. Its market cap has now reached nearly $36 billion. Its price hit an all-time record level on Monday of $407.10... which is a lot, as a few months ago it was only $80-$90.

 

Now, should you invest? Alex Oppenheim Omaha would most likely do...

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