Ethereum and Ripple are exploding higher thanks to the growing interest in cryptocurrencies that lifted Bitcoin above $18,000
Ethereumand Rippleare soaring, echoing the powerful rally in Bitcoin, as mass interest in cryptocurrenciespicks up steam.
- Ethereum has jumped almost four-fold this year to just below $600, although this is still short of its record $1,500 in January 2018.
- The price of smaller crypto rival Ripple has hit its highest since mid-2019, having doubled in value in this month alone.
- This growing interest raises red flags, because many people are pouring in money into cryptocurrencies without really understanding how they work, which could lead to several mistakes and lost money, a researcher said.
Bitcoin's growing reputation as an inflation hedge is boosting the price of other cryptocurrencies. Ethereum, the second-largest cryptocurrency platform in the world, rose by more than 6% to $597 on Monday, its highest since mid 2018.Ethereum is still well below its all-time high of about $1,500 recorded in January 2018, but its price has increased four-fold since March 2020, when the pandemic brought global money
Michael Sonnenshein, managing director of the world's biggest crypto fund Grayscale Investments, told Business Insider last week that he believes Bitcoin is the next step in the evolution of money.As the pandemic continues to quarantine huge swathes of the global population, people are spending more time online, and they're probably getting more interested in cryptocurrencies like Ethereum, Bernard Meyer, senior researcher at CyberNews.com, said.
"If they're on Ethereum, they'll be using what's known as a smart contract to sort of automate the process of sending and receiving payments for users. But these smart contracts can have some big security holes in them," Meyer said.
Investors need to check the type of smart contract they're using and whether it has been audited and verified, to limit the chances of something going wrong.Read More: GOLDMAN SACHS: Buy these 14 stocks well-positioned to see surging cash flow as the recovering economy upends the market
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