If you are thinking about investing in the Ethereum project or if you currently hold ETH, which is Ethereum’s native token, you will want to know what you can buy with Ethereum.
In short, ETH (Ether) can be used to pay for many online things and gets its value in several ways. This is because ETH both fuels the Ethereum blockchain and is used to run apps, games, and access financial services.
What is Ethereum
Like Bitcoin, ETH is also held and traded on exchanges. ETH has remained the second most valuable cryptocurrency on exchanges since its creation in 2015. But unlike Bitcoin, the Ethereum price is not purely speculative. This is because Ethereum.org is not just a cryptocurrency.
Ethereum is a massive decentralized blockchain project which enables thousands of applications all around the world. That means that the value of ETH is determined in part by the success of the applications built on the Ethereum blockchain and not just what it is traded for on exchanges.
How To Use Ethereum
ETH is commonly referred to as “the gas” of the Ethereum blockchain, as it is the energy and financing that powers all of its applications and projects.
Many investors who own ETH will hold it the way you hold Bitcoin or traditional ETFs. Investors can trade Ether on exchanges. And because ETH is so valuable, it is a trading pair on nearly every cryptocurrency exchange. You can often use ETH to buy Bitcoin on many exchanges.
The Ethereum project is much different from Bitcoin. Bitcoin and ETH are both cryptocurrencies that can be held, traded, and used to buy items. However, Ethereum exploits the blockchain tech that Bitcoin was able to build itself on. In doing so, Ethereum allows anyone to create new digital assets on the Ethereum Blockchain.
With Ethereum, creators can tokenize any kind of application from: online games and collectibles to real estate and art. Ethereum’s blockchain acts as a gateway that enables users to share any kind of information, including pattens and property.
However, to run all these apps, Ethereum needs to be able to fuel the blockchain. To fund these projects, whenever you buy or mine ETH, you pay a small fee to the Ethereum project. This allows Ethereum to keep the platform running and allows others to build on it.
Tokens and Ethereum
As mentioned, users can create their own cryptocurrency on the Ethereum blockchain project. So many cryptocurrencies run on Ethereum’s blockchain.
Here are some common categories of tokens of cryptocurrencies.
Stablecoins are much more like traditional fiat currencies or even ETFs. These are coins that are backed by a real asset, such as precious metals, real estate, or they are linked to a service or project.
The main reason to back cryptocurrencies is to solve the problem of cryptocurrency volatility. Cryptocurrencies like Bitcoin are based purely on market value. This is not a bad thing at all. However, it does mean that the value is speculative, and therefore is based entirely on market demand and the prospects of future valuation.
Governance tokens are used primarily in decentralized organizations. They work a bit like traditional shares do, where holding more shares represents more stake in the project.
Tokens can also represent collectibles, either digital or tangible. This includes collectible game items, digital art, or other unique assets. These are most similar to non-fungible assets, such as art or jewelry.
Online Shopping with Ether
You can also use ETH like cash to buy things online. The following business and merchant allow customers to pay with ETH:
- Flubit.com is the largest UK-owned marketplace for branded goods. Flubit is much like Amazon, where you can buy over a million items including toys, books, beauty products, etc.
- OpenSea is a marketplace that sells digital goods, such as collectibles, gaming items, digital art. The marketplace runs on a blockchain platform, and you buy, sell, and trade any of these items around the world.
- OpenBazaar is a peer-to-peer application that connects buyers and sellers, like Kijiji or Craig’s List.
- FlokiNET Is a web design company that develops individualized digital products for businesses and individuals.
- DrApis’ Is an artisanal raw honey producer from Alentejo, Southern Portugal.
- Blockchain Coffee Space: A gourmet coffee brand inspired by blockchain enthusiasts. The coffee beans are from the state of Veracruz in Mexico.