Blockchain expands into more financial sectors with Ethereum

Blockchain expands into more financial sectors with Ethereum
Photo: David McBee, Pexels

Ethereum regained some of the financial losses in the second week of May of 2018. The crypto has seen ups and downs as financial institutions, countries, and banks have dithered about accepting the new currency as rapidly as the citizens of the internet have embraced money that is backed by blockchain technology.

Ethereum has several things going for it already. The blockchain currency has a price tag that is within reach of a much wider audience than Bitcoin is. The blockchain technology that protects the investment has proven to be as robust if not more technologically sound than any competitors.

The acceptance of Ethereum has been a phenomenon. The growth has been faster than other blockchain currencies. The value of the currency has grown by 89 percent in value in three years.

It is true that the original blockchain technology that powers Ethereum is light years faster than competing blockchain technologies.

The platform has been consistently looking toward the future. The tech has been adopted by a multitude of App development companies that handle money, people, and need security that is foolproof.

Ethereum looks to have a vision to be the first blockchain based organization that offers a complete investment portfolio of their own. The portfolio is independent of any bank and exists like all blockchain entities entirely in the realm of the internet.

These are a few of the endeavors that Ethereum has made a reality in their effort to make a blockchain investment platform that uses only blockchain technology a further iteration of the present success of blockchain companies. The idea is partly involved with what to do with the crypto profits.

Crypto futures

Ethereum has backed a successful futures market for cryptocurrency. The only crypto that the futures market is dealing in at present is the Ethereum and all versions of that cryptocurrency.

The market is completely legitimate and registered. The idea is to provide people with a stake in the Ethereum a potential to make more money from the eventual and some say inevitable success of the cryptocurrency.

The trading platform can be accessed without any humans involved. Human advisors are available for those who do not understand how the futures market works. The investors are protected by Ethereum’s own contract creation programs. The smart contacts prevent any of the futures market theft of accidental losses due to human errors.

Better tracking

Ethereum has faced a constant struggle to prove its legitimacy despite the fact that no system breaches have ever occurred and no mobile App development company that uses any of the technology has ever reported a loss due to the tech.

Ethereum App development companies have made changes to the tracking system for contracts. The newest release allows auditors to track all changes to any contracts. The idea is to add higher security for clients and legitimacy to the blockchain system and further proof of concept of the blockchain technology.

SEC

The majority of analysts and market watchers claim that the Securities and Exchange Commission will view Ethereum as a legitimate security. The case is with a jury. Ethereum may face some difficulties due to initial coin offerings that have been proven to be scams.

The things that are in favor of approval are the facts that the technology is being used by stock trading companies that the SEC approves and banks that the SEC approves to trade and sell stocks.

The recent volatility in the price of the Ethereum is attributed in part to the SEC case.

Banking and mutual funds

Ethereum has an estimated value of $73 billion. This is a larger capitalization than some of the most respected and productive investment vehicles used for retirement and wealth management.

There has been some talk about Ethereum either becoming an investment broker on its own or partnering with an established firm. The advantage from a security side is simplistic. The contract management software alone would be a superior selling point to any brokerage firm that operates at present.

The speed that the technology provides presents a potential to make more money for investors. The use of technology for trading is limited by the SEC and other global organizations but the laws were written before blockchain companies existed.

The real advantage here would be for the individual. There would not be a need for a broker or an advisor at all. The technology could do it all for a person. Trades and changes that benefit the investor could be planned by the investor. The option for human assistance for a fee could be available but would not be necessary.

People who have traded stocks frequently would immediately understand the advantage of machine speed and accuracy. There would never be an instance where a broker forgot to make a trade for an investor.

The age of truly tailored investing would be real. An investor could set out an initial set of parameters for his machine broker. The machine operates strictly on these parameters. The advantage of the machine is that it can check all the data all of the time and make changes that benefit the game plan all day long.

Ethereum Coin on a table
Photo: David McBee, Pexels

Costs would be lower and returns would be much higher

Trust would be a major issue for some people. These people might pay a slightly higher fee structure to have a human involved in the process. Younger investors who grew up with machines that are close to thinking would be more ready to adopt the new investment scheme.

Cost for the service as a broker, investor, or a mutual fund would be near nonexistent. There is no overhead. That has always been the beauty of blockchain. The software and improvements to the tech are the major cost factor.

Most people are still thinking of Ethereum as only a cryptocurrency company. The technology that made Ethereum the number two rated cryptocurrency in the world has been adopted by so many other businesses that Ethereum has become cash heavy even without the rapid acquisition of the crypto.

Ethereum is looking at new opportunity. Some of the new opportunity is focused on being the first mutual fund that is backed by a cryptocurrency.