Doom for Bitcoin as another Digital Token Steps in and Threatens to take over

By Juma Fredrick

There has been much talk and discussions about the digital currency Bitcoins that seemed to be baffling many on what it was, how it works, how one can invest in it and how one can make billions from its investment.

The excitement about Bitcoins, however, is likely to receive a shaking after another entrant on the market who is winning the hearts of online investors as well as cryptocurrency diehards across the world.

Welcome to Etherem Blockchain, a digital currency whose value has been skyrocketing and according to financial analysts, its value is likely to surpass that of bitcoins by the year 2018. According to the Chief Executive Officer of cryptocurrency hedge fund Polychain Capital, those trading in Bitcoins should brace themselves for a tough contest.

According to an interview published on Bloomberg Carlson-Wee says that “what we’ve seen in ethereum is a much richer, organic developer ecosystem develop very, very quickly, which is what has driven ethereum’s price growth, which has actually been much more aggressive than bitcoin.”

In the last two months, Bitcoins doubled its returns to investors by more than 100 percent hitting one time high before slumping back sending shockwaves through the spines of those investing in it. Economic experts now say that the coin is already showing signs of a bubble and the risk of investing in it is very high. Bitcoins has numerous risks not to mention fraud, safety as well as the lack of recognition by governments around the globe.

In both investments ethereum and Bitcoins, however, safety is not guaranteed. Just last year (2016), hackers stole ether worth millions of dollars but this has not stopped investors from investing in the digital business. Economic analysts, however, point out some of the advantages of investing in the digital coins despite the high risk involved:

1. They are not subject to regulation. The cryptocurrencies are not recognized by federal banks around the world and are not subjected to any regulation by the authorities. This also implies that the trading in either of them cannot be subjected to taxation. One can, therefore, move billions of money in form of cryptocurrency across countries without being detected.
2. They are not limited to specific groups for investments. Anyone around the world can invest in them provided one is knowledgeable on the processes and the safety measures involved.

READ More on What are bitcoins? This question came up prominently in Kenya recently after reports of international computer hackers who were demanding ransom in terms of bitcoins. Many people around the country appeared not to know what bitcoins are and what they are all about except a few in the financial sector.