I rather like the idea of crypto-currency investors driving about in Ferraris and Porsches and we have already seen a meteoric rise of Bitcoin and Ether over the last few months.
In fact, I started buying Bitcoin after reading this Bitcoin article in the Guardian, where Bitcoin trader Huai Yang predicts that one Bitcoin will be worth one house. I have already discussed my thoughts on why I like to invest in Bitcoin and as you will see from the screenshot in this article from my coinbase account on 21st May. Bitcoin was then worth £1,484. Today it is worth £2,278 so it has indeed seen a very profitable increase in value.
Bitcoin is the gold standard of crypto-currency. You can actually buy things with it – you can book a flight or hotel stay with expedia using your Bitcoin today. Although one could argue that, given the pace of it’s rise, you might be wiser to hold off from spending your Bitcoin on a vacation and pay for your trip with cash.
Ether or Ethereum is the new kid on the block and offers an interesting alternative investment to Bitcoin. Many with Bitcoin see Ether’s potential and it seems that some Bitcoin-ers are moving at least some of their crypto-wealth over to Ethereum.
How can Ethereum be used in real life?
Ethereum, like Bitcoin, is based on a blockchain technology. What it offers over Bitcoin, is the possibility of development around it’s coin. This means that instead of just offering a currency, it offers a way to create contracts around the coin.
This has many practical uses. Just one example is the first Ethereum-funded movie venture, funded around Ethereum smart contracts. How does it work? The ‘Ethereum Movie Venture’ or EMV is a blockchain based movie platform. 75% of the movie’s net profit will be distributed among the Ethereum Movie Venture Token-Holders.
The Ethereum Movie Venture token began its initial coin offering (ICO) for the EMV cryptocurrency on March 20th 2017. The ICO quickly raised more than $300,000 USD for the team behind the film, and the EMV tokens are now available for trading on two exchanges – Ether Delta and idex.market – with the coin achieving a market cap of more than $1.8 million USD.
Crucially, the ERC-20 certified EMV Tokens represent an actual ownership stake in the upcoming Pitts Circus Family film. This ensures that those token holders can enjoy the 75% of net profits of the film’s profits until 2036.
The movie itself is about a family circus and what happens to that family when it stumbles upon an Ethereum hardware wallet, which will surely appeal to to the growing band of cryptocurrency enthusiasts.
Now the Ethereum Movie Venture has moved towards the third phase of its ICO. This phase entails the sale of early bird tickets to watch the movie. Ethereum Movie Venture will sell 20,000 early bird tickets, which will include 5 EMV tokens to attract early bird outsiders to the Ethereum project. The promise of a movie ticket that yields a dividend for 20 years, is appealing. Those dividends are an integral part of the smart contracts that govern the EMV token.
If this business model works well, it could pave the way for many more Ethereum movie ventures. Much like crowdfunding, Ethereum is not restricted to funding movies. It can fund any business idea that captures the imagination of crypto-currency enthusiasts.
Will Ethereum Continue To Rise?
The possibilities are endless and therefore the potential of a further price rise in Ethereum seems inevitable. I for one can’t wait for the first luxury hotel financed with Ethereum. And for those of us that invest now, I tend to feel the future is equally rosy. Not only is the price of an Ether rocketing up, but you can now easily use your Ether to invest in exciting projects which offer even more possibilities, for both making money and being part of something bigger.
Ethereum may fund your Ferrari habit and your luxury lifestyle in general. In fact, it probably will. But for me, the possibility of being part of an Ether-related project is perhaps even more exciting.
How Do I Buy Ethereum?
Coinbase seems to be one of the more secure cryptocurrency brokers offering decent prices and reletively low buy costs. If you open an account with coinbase, make sure you set it up using a coinbase referral link like mine. Once you buy or sell $100 USD (£76) of digital currency (Ether or Bitcoin) or more, you will get $10 USD (£7) of free Bitcoin (as will your referrer, which on the link above would be me). You can then help to grow the coinbase community and your own portfolio by referring your own friends with your own referral code.