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Aside from investing in yourself of course :)

"If you would have invested $1000 into ETH on new years eve of 2015, going into 2016, you would be sitting on $1 million or more right now - profit."

The Single Biggest Reason Why Ethereum Is The Best Investment You Can Ever Make In Your Life

Ethereum's versatility goes unmatched.

Hello there my fellow disruptive force,

Welcome to Cryptonicles

This cyrpto community was something that was manifested in an effort to further my understanding of cryptocurrencies and the blockchain, and the roles they will play in our evolving world today, and well into the future.

Most notably, the role they will play in combatting our $100 trillion costs on climate change (that’s right… an absolutely insane amount of money!) has peaked my interest into these digital assets.

But of course, with the advent of blockchain technology, and the epic surge of value into the global cryptocurrency ecosystem (over half a trillion in a year), I now truly believe that a peak demand scenario (end of fossil fuels) can be achieved worldwide. We will be able to stabilize our climate by taking advantage of blockchain technologies, all while involving people of every culture from around the globe in, in this grand exchange. We can see that slowly, yet surely, cryptocurrencies are becoming more and more efficient, and effective at transferring value.

Look at that transaction speed! Trillion dollar market caps are not so far away.

So I’m going to take you through why I think (or ‘in my opinon’) Ethereum and its ETH token are going to be one of the most valuable assets you can ever ‘hodl’, and why it may be the greatest investment you ever make in your life.

First things first, what is Bitcoin and how does blockchain technology even work?

(Said everyone ever!)

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What is blockchain, and how does blockchain technology work?

Ok so before we start splashing thousands of dollars into ventures and investments we have no idea about, its probably best to do a quick background check on the technology that is powering this unstoppable wave of cryptocurrencies worldwide.

Watch this short video, it will make you learn at light speed.

First and foremost you have to understand that this blockchain world is anonymous and decentralized, you are swimming in an ocean of digital code, pretty much on your own. But of course, communities like Cryptonicles are here to assist with your cryptographic evolution. There are many scams, many hackers, and many ways to lose your coins online. Be wary young cryptovestor... many have lost millions to ponzi schemes of all kinds, Bitconnect is a strong example.

But as demonstrated in the markets this past year, sheer volatility makes it possible to accrue small fortunes in a very short amount of time if you are smart. So aside from dodging a constant bombardment of traps, it's time to activate our Market Vision and take a look at what's making the entire world continue to chomp at this digital 'bit'.

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A Short History of Bitcoin

Bitcoin made itself known in 2008, the first decentralized peer to peer cash system, where you were in control of your funds on the blockchain, was born. Interestingly, it was actually just after the Occupy Wallstreet campaign had been accusing commercial banking institutions of client abuse, fraud (subprime loans), and overall mishandling of public finances, that Bitcoin was coming to light.

Coincidence? Probably not, if the guys and gals making Bitcoin were smart enough to write the blockchain code, they most likely recognized that the need for this decentralized financial ecosystem was apparent.

The world wanted a new way of doing business - eliminate middlemen, cancel interest fees, and make transactions completely transparent.

Although wary to adoption in its early stages, the world is slowly yet surely began understanding just how powerful blockchain technology actually is, seeing huge enterprises such as, Paypal, Microsoft, Dell, and soon to be Dallas Mavericks, taking Bitcoin for their products and services.

The cryptocurrency has come a long way in a relatively short amount of time. I mean, how long does it take a FIAT currency to reach 5 figures in valuation against other currencies?

;)

Outside of hacking, extremely high volatility (some love it… I do), and slow transactions times during high volume periods, Bitcoin has made a very powerful name for itself worldwide.

So much so where people in third world countries are finding Bitcoins to be their most reliable avenue to sending and receiving dollars to each other and across borders.

Understand that blockchain is a technology that allows the exchange of information in a trust-less, validated, decentralized, peer to peer network. The accounting system of this validation between peers creates digital code that can be recognized as a currency during these digital transactions.

Bitcoin is essentially an exchange of digital information that allows you to purchase or sell products and service that would otherwise be done so with FIAT (USD, CDN, GBP etc.)

It is a currency because it can be ‘valued’ and therefore used to ameliorate the difference in value of products and services in exchanges by acting as a buffer in those same exchanges.

Regular FIAT money is doing this as well.

Lets say you go to McDonalds and want a happy meal for $5 dollars, and you give a $10 dollar bill, the change you receive acts as a buffer in the exchange because the value of what you have is not exactly the perceived value of what you are buying.

That is basically the purpose of money - to fill in the cracks during commerce.

Because of this reason, the digital denomination of bitcoin, during transactions, helps us associate how much digital ‘currency’ (data) is required for a purchase or sale of a product or service. This exchange of digital information during the transaction has a value. That value is pinned onto a named to in order for it to be easily recognized by humans and exchange at scale (crypto markets), in this case the name is Bitcoin.

The transactions of this digital data, in the form of Bitcoin, is trusted and secure because it runs on a peer to peer computer network. This network is constantly checking all transactions for validity, and because of this constant checking of data blocks by multiple third parties in an infinite chain, it is impossible to compromise one block without tainting the others - hence, the magnificent power of blockchain in that there is no central authority determining validity, it is the participants on the blockchain (miners).

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Why was blockchain needed for society?

This problem of validity was originally posited in the Byzantines General’s problem. But once solved - now created a platform for strangers to build trust with one another, and that trust is tantamount to currency.

The importance of anonymous trust is paramount for the business world in general. We currently live in a society where everything is tracked and regulated by a third party, but not for long...

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Principles of a Bitcoin Transaction

1. Irreversible - once confirmed, the transaction is done, you cannot go back. And there is absolutely no one and nothing that can reverse it. That’s why it’s important that you pay VERY close attention to address keys when sending to and from your own accounts. Also, recovering your coins from a scammer who has sent you a key pretty much means you’ve lost them.

2. Pseudonumous - the coins, and value, are exchanged between wallet I.D. address (show example). They are not connected to any real life, in world, entities. They are just addresses on the blockchain. Although you can, potentially, cryptographically backtrack transactions to find out where they start and finish (all data is publicly available), you cannot associate an address to anyone or anything unless the address owner has done so themselves (posted the address for others to see).

3. Relatively Fast, WorldWide - bitcoin transactions only take a few minutes, even though sometimes people can experience especially high wait times during periods of large volume. There is a global network of computers that are facilitating the transaction, but not necessarily anywhere close to wherever the transaction was started or finished. Literally, the entire network is decentralized, everyone on the ledger is contributing to your trade!Very secure (blockchain) - Your Bitcoin address is the safest savings account you will ever had. It in NO WAY can be compromised unless you give it and the associated passwords away yourself. You are storing data on data that is protected by a huge decentralized network of more data. Let’s just say it’s easier to hack into exchange than it is to get into these little data files on the blockchain, and that’s almost impossible outside of a few rare cases.

4. Permission-less (no third party) - You don’t have to ask anyone for ****. Banks, financiers, lawyers, insurance agents, all get bypassed when using cryptocurrency. A great feeling for those who have felt stifled by the banking industry and our economy in general. Your financial choices are now squarely placed in your own hands.

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Where can I buy Bitcoin?

I wrote this guide to help people, new to crypto, buy Bitcoin - check it out here.

Where do I put my Bitcoin when I’m not using them?

You can store you Bitcoins and other cryptocurrency on wallets you can download from pretty much any exchange, or even specialized hardware wallets and that allow you to store the digital currency offline.

For long term investments, most people tend toward the hardware wallet as there is a 0% chance you can lose your coin, unless you lose the wallet of course!

What can I buy, and sell, with Bitcoin?

The adoption of Bitcoin into the mainstream has been huge over the last 2 years especially.

Major retailers are now recognizing the cryptocurrency, and others, as as valid method of transaction and have taken it upon themselves to get on the crypto wave early when it comes to consumers.

Here are some names you might be familiar with, that now accept Bitcoin:

Overstock.com - the first large online retailer to except the cryptocurrency in January of 2014. You can pay for anything from technology to linens with Bitcoin. You can not only use BTC, you can use ETH, Litecoin, and BCC to makes purchases as well. At the checkout you simply change your currency preference to crypto and voila, you are buying real life things with digital currency.

Expedia.com - Another large company to start taking Bitcoin in June of 2014. One of the world’s most popular online travel booking agency now allowed people to pay for their hotels with Bitcoin.

Both Expedia and Overstock actually integrated with Coinbase (link to referral) in order to implement Bitcoin payments.

Egifter.com - this is one of my personal favourite BTC merchants because although you cannot spend Bitcoins at every single website or brick and mortar store in the real world, you can buy gift cards here for those exact same places. They even have a mobile app. Mobile cards for Amazon, JCpenny, Sephora, Home Depot, make this an amazing place to spend your Bitcoin for real life things.

Newegg.com - Electronics, gadgets, and gizmos can all be found at newer. BTC hodlers will be more than happy that Newegg is using BitPay as a means to accept cryptocurrency. It looks like most companies in tech or software are moving towards the currency faster than others.

Shopify.com - Do you have your own Shopify store? Shopify developers had the presence of mind and foresight to see Bitcoin payments as a possibility for its users. In November of 2013, all 75000+ Shopify merchants could now accept Bitcoin payments with Bitpay. This to me is a groundbreaking development as Shopify has quickly become the go to spot for commerce for hundreds of thousands of small business and individuals today. Giving the ecosystem of cryptocurrency another avenue of exchange through ecommerce at this scale is a HUGE deal.

Microsoft.com - Microsoft is an extremely important adoption because it basically means that big tech is showing support for the adoption of cryptos.

If Bill thinks that Bitcoin has a future in world due to its marginal transaction costs and ease of proliferation, then there should definitely be a use case for the digital currency on a much grander scale. This is one of pioneers of modern technology after all.

Even though Bitcoin can only be used to purchase games, movies, and apps in the Windows and Xbox stores, you will most likely see yourself able to purchase much more from Microsoft as time passes, and much more from the world over the next few years.

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Ok I know more about how Bitcoin works now, but isn’t this article about Ethereum?

Yes the title of this article - I almost forgot!

First I had to stress how important blockchain technology is before presenting the case for ethereum. It was important that I demonstrate the use cases for Bitcoin, in order for you to understand that yes, you can use cryptos for many different things other than storing and trasnferring value as demonstrated by the first digital currency.

Because Bitcoin, in ALL of its glory, is still simply a currency, its value is only determined by what people are willing to pay for it, and accept whatever amount for the goods or services they provide.

It’s functionality outside of being a currency is therefore limited.

In recognizing that, an amazingly versatile currency with infinite possibility of utility, aside from just currency, was postulated, conceived, and now powers over 1000 different platforms (and their respective coins) on the global exchange.

That currency is ethereum.

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What is the Ethereum?

Ethereum was first described in its white paper in 2013, by Vitalik Butern, a cryptocurrency researcher and programmer studying at the university of Waterloo in Ontario, Canada.

Vitalik was only 19 when the concept of Ethereum started to take shape - what were you doing at 19? Kidding, kidding! Vitalik was trying to build a platform off of Bitcoin, that could then facilitate the development of other platforms, a cryptocurrency creation catalyst, so to speak.

Interestingly, Vitalik did not recognize the potential of Ethereum in the beginning.

He was a Bitcoin community writer and entry level programmer, getting paid 4 Bitcoin at a time to write about the emerging cryptocurrency and blockchain tech.

A very good deal in hind-sight, you must agree...

Surprisingly Vitalik’s idea didn’t gain much headway at first (sort of like Mark Zuckerberg).

Only after sitting down and rewriting out Bitcoin protocols into a programmable language did Vitalik’s ideas fully form into the smart-contract distribution computation machine that the Ethereum blockchain is today.

A crowd sale, from July to August of 2014, funded the development of the Ethereum platform and the system went live on July 30, 2015 with 11.9 million coins already mined and ready for market.

Vitalik, who was already a blockchain beast from co-founding Bitcoin magazine after dropping out of the University of Waterloo, had just changed the world forever with this platform, and undoubtedly became insanely rich in the process. Another L for school - womp womp. But another enormous win for the world of cryptocurrencies and society in general.

The ‘Ethereum Project’, an open-source, public, blockchain based computer platform, had featured ‘smart-contract’ scripting functionality, making it an ideal tool for digitally facilitating the verification, negotiation, or performance enforcement, of a contract written on the platform. This process of smart contract creation, and blockchain proliferation, spurred a frenzy of cryptocurrency takeover.

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What are Smart Contracts?

Smart-contracts could be anything.

In fact, blockchain developers claim that many kinds of contractual clauses can be expressed partially or fully, using these smart contracts. Everything from self-execution, to self-enforcing, these contracts provided greater security than traditional contract laws and significantly reduce other transaction costs associated with contracting out business, legal, and administrative services that would ordinarily be carried out by humans.

Just imagine going to school to become a contract lawyer, only to find that your line of work has been completely automated, digitized, secured, and concretely verified, and validated by a mega network of computational algorithms, decentralized to the degree of being unbreakable - poor, poor, lawyers… (seriously, its ok to pity lawyers now, they get beat up enough ;D).

Basically, smart contracts allow for credible transactions to be recognized without third party verification. For example, paying for dinner with a debit card, you need the bank to verify whether or not you have ‘money’ before the transaction can be complete.

Blockgeeks will learn you in the ways of the blockchain. Keep learning young cryptovestor...

With Ethereum, it was possible to come to agreement on terms and conditions of most, if not all, permutations of a contractual clause, and transactions, without 3rd party intervention of any kind.

That is a contributing reason as to why Ethereum is so powerful, because we can do business with each other, and not have someone else getting involved in the administration or legal side of things.

And when I say we can do business with each other, I mean in every sense of the word. How many agreements do businesses have with each other in the B2B economy? All of those relationship can be replaced with smart contracts. In this case, lawyers, banks and potentially, the government have no say in what we do with our currency in this digitized world.

For example, you could buy a house using ethereum, and completely eliminate the need for lawyers, brokers, real estate/insurance agents, the list goes on. How many people were involved in your latest home purchase?

Let's use cryptocurrency to invest into real estate, no 3rd party required!

The goal of Ethereum was to be a platform that other decentralized applications (DApps), or currencies, could be built off of. A general purpose platform, like the programming languages used by app developers for both Android and iOS applications that we eventually have all come to love.

By enabling the rest of the blockchain community to contribute towards this bubbling ecosystem of cryptocurrencies, Ethereum has given enough momentum, and life, to exchanges across the globe. Ethereum based platforms can be built and run without any downtime, fraud, control or interference from a third party. It is not just a platform, but also acts as a programming language (Turning complete) running on a blockchain, that helps developers continue to build and publish DApps (distributed applications).

ETH enters the fray to change up the game.

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What is the Ethereum network?

So how does all of this work on the blockchain?

What is it about these transactions that makes them more effective, or more secure than the conventional banking transactions we know? Well it has to do with the fact that each crypto/platform transaction, every single one, is broadcast to a giant mass of connected nodes (computers) that automatically update and record these transactions in an open and distributed ledger. This system of nodes constantly updating, recording, and broadcasting ledger data is known as the “Ethereal Virtual Machine”.

The EVM is a decentralized cloud computing system that can literally facilitate almost any term, condition, or transaction through smart contracts.

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What is the difference between Bitcoin and Ethereum?

Ethereum is different from Bitcoin in that Ether, its token, is used for two purposes, as to opposed to just being a currency, like Bitcoin.

With Bitcoin, the primary intention of its development was the actual accounting mechanism used for transactions along the blockchain, this accounting mechanism between digital transactions of data is known as the “Bitcoin”.

Ether is generated the same way, through balancing digital accounts on the blockchain.

But as much as Ether can be traded as a digital currency, like Bitcoin, it can also be used to run applications and even ‘monetize work’ on the Ethereum platform.

'Monetize work' is a funny term.

Well basically, work can be considered many thing on the blockchain. The Ethereum platform allows the development of smart contracts that reflect an exchange, agreement, or transactions of any kind.

Ethereum solved the problem of multiple applications using blockchain technology on multiple blockchains. Ethereum is a general purpose blockchain that multiple, if not unending, amount of applications can be built.

Vitalik wanted to bring a general purpose flexibility to the Ethereum platform, treating it much like the Android/iOS operating systems that use general purpose programming languages, allowing anyone to create apps for your phone. Ethereum is the same way, it is a platform that allows others to build out other platforms on the same Ethereum blockchain.

So in the case of a gamer playing on an ethereum based platform, that gamer could essentially be rewarded (alt coin currency) for their achievements or even just time spent playing a video game (gaming application built on ethereum platform where block transactions occur during in game content [in game currency even]).

Work is just another term for data processing. Wether smart contracts or triple kills, monetizing work for any activity, even the mundane passage of time, is possible on the Ethereum platform.

Keep in mind though, that Vitalik’s true goal was not to simply build out a digital asset, but a platform that others could build additional platforms off of. Remember, cryptocurrencies are the by product of these decentralized applications needed an accounting system for the validation of transactions. Hence, a currency is always born with each application that is developed.

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Building currencies off of the Ethereum Network.

ETH’s primary use is as ‘gas’ or fuel for mining out other currencies on the ethereum network.

The programming language, solidity, is used to express smart contracts on the ethereum network.

i actually had a great opportunity to learn a little bit of solidity when deploying my own cryptocurrency to the Ethereum test network.

The actual base code I used to deploy my cryptocurrency, the Cryptonicle, is below if you are curious. Solidity is a very interesting language.

What an amazing experience!

I had the most genuine pleasure in being able to experience building my own token, and deploying the cryptocurrency to the test ethereum network.

And let me tell you… this exercise opened my eyes to the infinite possibilities for the ethereum network.

Although I was extremely tempted to deploy my Cryptonicles to the main Ethereum network (where everyone fights each other on exchanges for ETH and BTC), the instructor at Blockchainhub Toronto kindly advised that I wait until I had at least prepared a platform and ICO team for Cryptonicles before deploying the token…

LOL not QUITE there yet, but at least the solidity base code worked.

As a now VERY amateur blockchain developer, I had managed to squeeze my own currency out of the Ether, the gas required to power the Ethereum network.

All smart contracts on the blockchain must come with an associated cryptocurrency to act as a balancing mechanism towards accounting transactions when contracts are being excercised. Thus, a currency is necessarily created every time a smart contract (or a platform service) is being developed.

These currencies built on the ethereum not only need ETH gas to deploy, but after deployed, most of the time, ETH is required by market participants and ICO investors to get their hands on the newly deployed cryptocurrency. If you’ve invested into alt coins, you know this scenario all too well.

Giving us the most important reason why ETH is the best investment you will ever make.

Infinite Functional Utility for Ethereum - A piling up of use cases (ICO frenzy)

ETH has a self-perpetuating intrinsic value - we just cannot see it so clearly right now when looking at the overall crypto ecosystem.

It’s far easier to grasp once you understand the technology that builds the token.

Vitalik could not explain it better than in this video.

The Ethereum network is replacing organizational protocols of businesses, corporations, administrations, and soon to be governments like nothing has ever before.

People think that automation and artificial intelligence (AI) is going to replace our work force...

Well in addition to that you have an unending see of ICO platform seeking to blockchain every service you can possibly think of.

Just got your law degree? Really consider diversifying your knowledge, or better yet, get into this blockchain space, its amazing (you will do VERY WELL).

Because if you don’t, some blockchain, somewhere, is getting into your space and replacing your life with solidity base code.

That is why so many platforms are being build off of ethereum network, its versatility for creation, and validation of smart contracts is unmatched. And because each platform, by nature, needs its own accounting system, cryptocurrencies are being born en masse as more and more use cases pile onto the ethereum network.

As well it is required to not only build new alt coins, but also to buy them. This will significantly increase the demand for ETH as more businesses learn how to create there own coins, and consequently, more customers seek to acquire them in order to use those same business' services.

Ethereum can spawn an infinite amounts of other additional currencies, or smart contracts, for just about any service, or agreement, you can think of. Anyone who has an online service or transactional exchange of some kind, is able to create their own unique currency, any volume of them, to service their community and facilitate transaction.

Even my Cryptonicle. I wanted to create a trillion tokens to be honest - its literally just adding in a few zeros to your code. But I thought at that point no one would believe me or my creation, because creating a trillion units of your own currency is pretty insane - sometimes modesty works.

With the Ethereum network, you can essentially digitize every variation of a transaction required for agreement and trust between two parties.

We can basically create a smart-contract for anything.

Recent ICO’s Using the Ethereum Network that I personally believe have high scaling potential.

As an investor, In order to acquire alt coin cryptocurrencies, or token when purchasing ETH, one must have something called an ERC-20 compatible wallet.

You can visit myetherwallet.com for a free decentralized, anonymous ERC-20 wallet that you can access at any time. This is actually the platform I used to deploy the Cryptonicle, it syncs well with the Metamask chrome extension if you are looking to sexify your crypto portfolio through your browser.

There have been hundreds of ICOs using the Eethereum network, just in 2017, here is a short list of a few:

EOS

- Infrastructure for Denctralized Applications

TRON (TRX)

- Torn looks forward to building a global free content entertainment system using the block. They’re recent exploration through gaming partnership has TRX #hodlers clammering - #MOON.

ICON (ICX)

- ICON connects independent blockchains without the use of 3rd parties, and interconnecting blockchain network, ICON is considered the ETH of Korea in some circles.

Binance Coin (BNB)

- Binance’s coin is used to ameliorate transaction costs while using the exchange.

Augur (REP)

- market forecasting tool on the blockchain! Stunning technology.

Dentacoin (DCN)

- Dentacoin is pretty cool, its the first blockchain concept designed for a global dental industry! Get your teeth cleaned anywhere on the planet.

Below are some of the ones I thought to have the greatest potential given their industry. I have a strong interests in financial platforms and ecommerce along the blockchain as globalization of products and proliferation of services becomes faster and faster.

We need these tools for everyday life just to keep up.

So the potential functional utility of these platform are ones that I feel will be most effective, and far reaching.

It will be interesting to see how many more applications are built on the Ethereum network now that developers are seeing each others work in action and continue to innovate and build off of ideas floating around the block.

I suspect thousands of more currencies to be built in the near future.

I would go as far as to say up to 5000 different currencies will exist by 2020 given the exponential trajectory of their creation.

Woah that’s a lot!

But what will that do to the value of ethereum, or even the future of the overall ecosystem?

My opinion on Ethereum's Value, Price, and Future in the overall Ecosystem

If you would have invested $1000 into ETH on new years eve of 2015, going into 2016, you would be sitting on $1 million or more right now - profit.

For a VERY small investment - you could have been a millionaire.

Coinmarketcap wins!

I often wonder how much ETH Vitalik Buterin actually holds, but then thinking that this 23 year old is a multibillionaire, and the likelihood that he will be overseeing much into the future, gives me the heeby jeebies!

I can only thank him for unleashing a tool onto a market that has lured billions of dollars in commercialization well into the future.

We all have an opportunity to benefit from this ethereal innovation.

What is your risk threshold when the upside on cryptocurrencies is 100000% ?

I see a crypto currency ecosystem with thousands upon thousands of platforms and variations of service, all requiring gas, all requiring ETH. And you have to remember.

We are only at the beginning of this epic rise in cryptocurrencies - worldwide.

So the true value of these platforms has yet to be realized.

Making ethereum one of the most provocative investments you could add to your porfolio, ever.

Upcoming Piece

The decentralization of our world.

Stay tuned!

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Thank you so much for reading this far, wow.

I’m impressed that you finished!

But I hope that I have provided you with a sharper insight into the crypto scene while demonstrating that these digital assets do, in fact, have true value as people, and organizations around the world, are doing everything they can to acquire, and even create them.

If you’ve noticed I’ve made any errors in this piece, or any others I’ve written, don’t hesitate to let me know. I believe in truthful information sharing, and I do quite a bit of research because I feel like providing the right content is very important for the community.

If you have content of your own that you would like to share here, on Cryptonicles, check out the link below so you can post your own thoughts, or analysis, on crypto, blockchain, and this global revolution, that is disrupting our world.

Looking forward to your submission - welcome to the community!

Alex

@peakdemand

Join in on the conversation with Alex Masters Lecky when you subscribe to CRYPTONICLES.