Ethereum is a digital asset that came along in 2009 as an alternative way to store, spend, and invest your money. As opposed to local currencies, Ethereum doesn’t exist in any kind of physical form, meaning that you can only access it via the internet. Considering that most people worldwide have internet access, this shouldn’t be a problem.
Think of Ethereum as a heavily-encrypted computer file. When you store Ethereum in your digital wallet, you’re storing computer files with monetary value. These assets can be used for international purchases, trading, and more. Ethereum is a decentralized asset, which is another difference that it has from other currencies. Decentralized means that it doesn’t have to go through any banks or government authorities for a transaction to go through.
In that sense, people are free to spend their Ethereum in any way they please, allowing the general market to flow more smoothly. Another thing to keep in mind is that Ethereum works the same regardless of your location; these funds get stored on international servers, so there aren’t any local variants of cryptocurrencies. Overall, Ethereum is a global currency, which makes things much less complicated.
In this digital world, where many businesses and deals happen online, it’s vital to have an asset that you can use effortlessly to pay for anything you want, regardless of the place you’re buying it from. If you were to use traditional currencies, you would have to go through extensive and overwhelming processing platforms, which can take days to process a small transaction.
On the other hand, Ethereum transactions often get verified within minutes or hours, meaning that you can close a deal much faster, translating to a more active business model.