Why Is the Co-Founder of Reddit So Confident About Ethereum?
Alexis Ohanian, the co-founder of Reddit, is also a well-known fan of Ethereum. He has stated publicly that he believes Ethereum is the second-largest cryptocurrency in the world. Why is this Reddit co-founder so optimistic about Ethereum? BigONE is here to provide you with the answers.
Why does Alexis Ohanian like Ethereum?
It appears Ohanian favors Ethereum because he recognizes the core value and potential of the non-fungible token (NFT) field. NFT is a type of digital collectible in which the item’s ownership and copyright information is encoded. They are stored on the blockchain using smart contracts, a self-executing code technology. Ethereum is the forerunner in smart contract technology, with many substitutes and imitators following closely behind. Smart contracts also enable DApps and other cryptocurrencies to run on networks such as Ethereum.
The combination of online games and NFT is the new trend, and it is one of the factors that drew Ohanian’s attention. Prior to the introduction of NFT, players could only purchase in-game assets for use in specific games. With the advent of NFT, gamers can now buy items outside of the game and own them. “NFTs are just the start of what’s getting built on top of the Ethereum blockchain,” Ohanian noted in an interview with CNBC’s Squawk Box earlier this year.
Ohanian is also a fan of the digital trading card game SkyWeaver. The SkyWeaver game is built on blockchain technology, and players can own the digital goods they purchase in the game. In fact Ohanian’s investment firm, Initialized Capital, led the company behind SkyWeaver in a $3.75 million financing in 2019, showing how much he loves Ethereum and blockchain technology!
Is it suitable to invest in Ethereum under the current market conditions?
Ethereum is a cryptocurrency giant that can be purchased on leading cryptocurrency exchanges such as BigONE. It has, however, always been a victim of its success. Since Ethereum’s successful launch, it has been plagued by network congestion and high transaction fees, prompting some investors to look for an alternative solution.
Nonetheless, the Ethereum network continues to host most decentralized applications and serves as the foundation for many decentralized financial projects. As a result of network congestion and high transaction fees, Ethereum is also upgrading its own to improve speed, scalability, and lower costs with Ethereum 2.0 or ETH2 for short. “Currently, we are in Phase 0 of the road towards Ethereum 2.0. The Beacon Chain was launched in December 2020 and exists separately from the Ethereum mainnet that we are all using today. However, the Ethereum mainnet will need to be merged with the Beacon Chain, which is anticipated to happen in 2022,” confirmed Michael Gu, of Boxmining.
BigONE is always interested in Ethereum’s development and upgrade process. In the long run, some of Ethereum’s competitors are attempting to knock it off its top spot. But one thing cannot be overlooked: Ethereum has an unrivalled first-mover advantage. Many developers have grown accustomed to developing and programming on its platform. If a new platform wishes to succeed Ethereum, it must work hard to attract this committed developer community.
Assuming that investors are willing to accept the inherent risks of cryptocurrency investment, BigONE advises that when investing in cryptocurrency, you should add as much higher value and strong crypto currency to your crypto investment portfolio. Although this investment portfolio still has some risks, notably the ongoing upgrade of Eth2, the risk of investing in Ethereum is much lower when compared to investing in some new cryptocurrencies. Simultaneously, before investing in Ethereum, you should consider the enormous benefits that Ethereum has already achieved, as well as its future growth potential.
As reported in ZyCrypto the world’s largest investment bank JPMorgan’s advice to crypto investors is that they should focus on Ethereum rather than Bitcoin. In a recent investor note published by the bank’s analysts, the bank asserted that Ether (ETH), the native token of the Ethereum network, had more upside potential than Bitcoin in the current market. “With rising interest rates, Ether is poised to surge as it will not be affected by the market trend as much as Bitcoin. Ether’s many utilities in the Ethereum ecosystem will ensure this, as the token powers the majority of the DeFi and NFT markets,” the article said.
Because cryptocurrency is still a relatively new and unregulated market, investors should expect market volatility. This is why BigONE reminds investors time and again to only invest in funds that they can afford to lose. In the end, only you know your risk tolerance and financial goals, so before making any investment decisions, please thoroughly research and study the projects you intend to invest in.
