ETH SCAM OR LEGIT?

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Mrcoin

Bforum Member

Cryptocurrency is a hot topic at the moment. ETH (Ether) is making a name for itself and has become one of the most popular cryptocurrencies in recent times. However, there are still many bad rumors surrounding this second largest virtual currency that make many users feel unsafe to invest in. Is ETH the best cryptocurrency course out there or Is It A Scam? If you want to know about this token in detail then continue reading this ETH review.

What Is Ether (ETH)?​

Ether is the transactional token that facilitates operations on the Ethereum network. All of the programs and services linked with the Ethereum network require computing power (and that computing power is not free). Ether is a form of payment for network participants to execute their requested operations on the network.​
  • Ether is the transactional token that facilitates operations on the Ethereum network.​
  • While ether can be thought of as the cryptocurrency of the Ethereum network, metaphorically speaking, it is more accurate to refer to it as the "fuel" of the network.​
  • Ethereum technology uses blockchain development to replace the storage of consumer data, including financial records, by third-party internet companies.​
  • Ether is the world’s second-largest virtual currency by market capitalization as of 2021; it is second only to Bitcoin (BTC), according to market value.​
  • Ethereum developers started working on shifting the network from a proof-of-work (PoW) system to a proof-of-stake (PoS) system in 2017; the new underlying network is known as Ethereum 2.0 and it has yet to be fully released.​


What do traders think about ETH?​

There have been many opinions about ETH since it was created . In which a large number of users believe that ETH is really safe and useful, others consider this coin to be a scam that has never been trustworthy . Take a look at what traders think about ETH.




Many who think ETH is trustworthy have claimed that: “People that say Ethereum is a scam probably have FOMO (Fear Of Missing Out) and at the same are forestalled by their lack of understanding and the (erroneous) conviction that they’re too late to join the game".

However, everything has 2 sides and there is always a chance to become a victim of scam.

ETH Pros and Cons​

Being a virtual currency, it still seems mysterious and untrustworthy to some. With so much hype around, you need to do your research and be fully aware of the pros and cons of investing in Ethereum before making any decision. Let’s learn about both bitcoin’s strengths and weaknesses, so you can make an informed decision.

ETH Pros​

  • Global transactions
Ethereum allows for global transactions without the need for an intermediary. This means that it provides a low-cost and efficient way to send money across the world. It is capable of performing quick and secure global transactions. Also, Ethereum is working towards building a global, decentralized financial infrastructure that can handle all types of value exchanges.​
  • Ethereum has a large support
It is important to note that recently, big names like Microsoft and JP Morgan have begun supporting Ethereum with their products. This means that they will use Ethereum’s blockchain or develop blockchain-based on it. This will work to keep demand high for Ethereum and it will keep the price of Ethereum high and increase its value.

Furthermore, these companies will use Ethereum’s network to build their products and services.​
  • It is fast
Ethereum features a blockchain that can process transactions in seconds, whereas before it could take days for transactions to be processed. While the mainstream media has been focusing on ICOs lately, there are much more practical applications for this technology such as transferring money through a smart contract.​
  • Ethereum has a strong development community
It’s open-source which means that anyone can review the code, detect errors and provide suggestions to improve its functionality. This makes Ethereum stronger, more efficient, and secure

ETH Cons​

Ethereum has its limits, of course:​
  • Scaling Issues:
Unlike Bitcoin, which serves a single purpose, Ethereum serves as a ledger, a platform for smart contracts, and so on, which can lead to flaws, breakdowns, and hacks.​
  • Ethereum Investing Can Be Dangerous:
Investing in Ethereum, like any other cryptocurrency, may be hazardous. Cryptocurrencies are extremely volatile, resulting in both increased gains and numerous losses. The price of Ether has fluctuated a lot in the past, which might be a major disadvantage for certain investors, especially novices. Furthermore, Ethereum’s fees fluctuate, which is also troublesome.​
  • Number of transactions:
If a lot of people are trying to transact at the same time, then you might have to wait for a few hours or even days before your Ethereum transaction gets processed. The faster the blockchain network, the better it is for both individual and business transactions.​
  • Transactions cost money:
You will be required to pay the network (miners) for mining your transaction. This means that you must make sure that your Ethereum is worth more than the amount of money you are about to spend on mining it.​
  • Price volatility:
You may be wondering why Ethereum is so expensive right now if it’s just used for transactions. This is because people are using it as an investment rather than a currency, though there are other decentralized currencies that work this way too (notably Bitcoin). The price of Ethereum is not stable, and it may be worth more or less just hours from now.

Now that you know about ETH and both sides of investing in it. Is ETH a scam? Do you think it would be wise to invest some amount into ETH or are you better off investing elsewhere? Leave your impressions about ETH at the comment section down below.
 

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