The Promise and Peril of Ethereum

Ethereum has the potential to revolutionise the entire financial landscape, but this cryptocurrency is a high-risk investment asset

Amy C. Arnott 14 July, 2021 | 10:42AM
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ethereum
If you're still getting up to speed on the cryptocurrency space, you've probably heard of Ethereum, which ranks as the second-largest cryptocurrency after Bitcoin (new to bitcoin? Read this first). This article will explain some of the basics of the Ethereum protocol – I'll discuss Ether as an investment asset in my next article.

As the chart below illustrates, Ether (the official name of the cryptocurrency) is an extremely volatile asset from an investment perspective, even compared with bitcoin. But Ethereum (the broader term for the protocol that enables decentralised finance applications through smart contract functionality) is worth knowing about because of its potential to revolutionise the entire financial landscape.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Amy C. Arnott  Amy C. Arnott, CFA, is director of securities analysis for Morningstar.

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