What is Ethereum? ETH For Beginners! Ethereum For Beginners | Cryptocurrency For Beginners 2021

all right let's talk about ethereum so what is 
ethereum often called the digital silver ethereum   is the second largest cryptocurrency after bitcoin 
with a total market cap of roughly 300 billion   us dollars like bitcoin ethereum is based on a 
blockchain but it's improved bitcoin is closer   to digital money whereas ethereum allows its users 
to build smart contracts and decentralized apps   or dapps smart contracts are what the name 
suggests contracts you offer them using the   ethereum blockchain and when the conditions you 
have set are met then the transaction happens   now once you've written the contract it cannot be 
changed but at the same time you don't really need   to trust the individual on the other side if the 
conditions are not met then the transaction will   simply not happen what this means is that the 
person who sets the contract does not need to   trust the person who is actually executing it and 
vice versa the person who is executing it can be   certain that they can get paid the same amount 
they were promised so i guess you can say that   it takes the haggling out of the transaction 
this isn't the grand bazaar in istanbul this   is ethereum you set the price you pay the price 
no discounts no i saw it cheaper down the street   and then we have decentralized apps 
or dabs which are essentially apps   that allow you to use smart contracts in the 
ethereum blockchain in a user-friendly way   some examples of dapps are gollum which allows 
you to run computing power melonport which is   a digital asset management app and ether 
tweet which is a decentralized blogging   platform similar to twitter but because it's 
adapt content post on it cannot be deleted   so it's pretty much uncensored which is really 
good or really bad depends how you look at it then similar to bitcoin there are miners who 
verify these transactions and receive ether as   a reward and ether is the ethereum currency when 
ethereum was initially launched a new block was   formed roughly every 15 seconds as opposed to 10 
minutes of bitcoin and the reward was 5 ether now   a new ethereum block is formed roughly every 13 
seconds or so so it's 2 seconds faster and the   reward has gradually gone down to 2 ether 
to preserve the current's purchasing power   and avoid massive inflation now ethereum does 
not have a limit or cap on its maximum supply   although this has been proposed on a couple 
of occasions by its creator vitalik buterin   currently there is roughly 115 to 116 million 
ethereum on the market now generally ethereum is   an improvement to bitcoin in a lot of senses and 
it is much more advanced it's much more scalable   it can handle roughly 16 to 18 transactions 
per second or tps which is about three times   more than bitcoin and also if you've 
heard of nfts or non-fungible tokens   most of them are actually part of the ethereum 
blockchain which is a very interesting use case   however ethereum also has transaction fees 
which depend on how much demand there is   whether there is any congestion on the network a 
year ago the fees were around 20 to 30 u.s cents   but on 27th of april 2021 the average 
transaction fee was 10.73 so that's a huge   huge rise but if you think that's a lot on 
23rd of february the average fee hit 38.21   which was huge however i want to clarify that 
this is the transaction fee when an ethereum   transaction is confirmed and processed by a 
miner not the fees that you pay to buy it it   is too good to be aware of them though as they 
can deter people from actually using ethereum   now i will not get into the details but if you're 
interested in the technical workings of ethereum   i will add some links to the description below 
also if you've enjoyed the video so far make   sure you subscribe down below and click the bell 
icon so that you can get all of the latest videos   now why buy ethereum well for pretty much the 
same reason you would buy bitcoin ethereum is   unregulated decentralized and it's all 
governed by any government body it is   also an established cryptocurrency and therefore 
carries less risk than most of the other cryptos   it's a great way to diversify your portfolio but 
again whether you want to do that and how much   you want to allocate to it it's up to you and your 
personal risk appetite i personally think that it   could offer a better return to bitcoin although i 
roughly own the same amount of bitcoin in ethereum   now why is ethereum going up well same as bitcoin 
really fiat currencies around the world are being   devalued as a result of massive printing the stock 
markets are overvalued bonds are at an all-time   high gold is expensive silver is expensive 
it just simply makes sense that investors   will flock to an alternative asset which has a 
relatively low risk but can offer huge returns   and i just want to point out that cryptocurrencies 
are considered to be a very very very risky   investment but personally the more i look into 
them the more i like their long-term prospects   obviously do your own research but i think things 
are looking very rosy for ethereum secondly with   bitcoin paving the way for mainstream acceptance 
ethereum and other currencies have also started   to be accepted as payment although it's still in 
the early stages of acceptance just like bitcoin   now there is something known as a network 
effect which essentially says that the more   participants there are in a service the more 
valuable it becomes and this is very important   to remember when thinking about ethereum and other 
cryptocurrencies two good examples are twitter and   facebook they're obviously not cryptocurrencies 
but you get the picture finally ethereum's price   is correlated to the price of bitcoin so basically 
they tend to move together however recently they   start to divert a bit which is technical speak for 
saying that they no longer move together as much   finally how do you buy ethereum again lots of 
ways binance coinbase ethoro revolut is the   second biggest crypto so most online brokers and 
cryptocurrencies exchanges will offer it whichever   way you choose just make sure that you're the 
one who owns the cryptocurrency and not the   broker or the platform make sure it's not a cfd or 
spread betting as then you essentially not own the   cryptocurrency but rather you just be betting 
on the price most people i know own it through   binance and coinbase um they're a popular choice 
personally i own my cryptos for etoro but that's   just for my own personal preference and i just 
find it more convenient really alright so this was   ethereum in a nutshell let me know what you think 
in the comments below if you enjoyed this video   like share with your friends and subscribe thanks 
for watching and i'll see you in the next video

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