Are you thinking of buying more Ethereum? Now could be a great time due to multiple signs pointing to a strong bullish run. The shockwaves from the recent plummet seen throughout the world financial markets certainly had a devastating effect on many cryptocurrencies. Now, however, it seems the situation has greatly improved and we are now in a consolidation phase building steam. Additionally, global adoption of crypto and blockchain technologies has begun to skyrocket which can only mean good things for crypto moving forward.
As institutions work hard to buy up all the crypto that many retail investors have dropped due to fears of a complete market crash, more and more governments, large companies, and crypto whales have been looking at ways to take advantage of the current instability facing most crypto coins and tokens.
A couple of clear results that come from global adoption is that crypto payments are becoming easier than they ever have been before, and there are new takes on what decentralized currency really means as more concepts begin to emerge. Of course, there is also the fact that many more people are starting to see cryptocurrency as a real-world asset that can and should be included in a diverse financial plan.
Reddit to offer Community Points
Following the trend of crypto adoption into the mainstream, social media giant Reddit has announced that it is introducing an in-built payment system with an Ethereum token as the currency. The payment system will focus on “Community Points” and will allow Reddit users to send and receive ERC-20 tokens from their Reddit-based Ethereum wallet.
According to those close to the subject, the community points are being introduced to empower and reward ‘active members’ of a specific community. What ‘active’ means is yet to be determined, but if we look at how Reddit currently handles its community members the rewards would most likely go to users who are most active and who get updated the most. More details will surface over the next few weeks.
Community Points won’t be exactly like the points system that users benefit now, however. The points system that is currently in use, karma, is of Reddit’s own making and is, therefore, controlled by the Reddit team. Community Points will ‘decentralize’ the points further, allowing users to utilize their tokens in interesting new ways.
For instance, as users will be the owners of their own ERC-20 crypto and hold those funds in accounts personal to them, users will have full control over how those tokens are used with usage patterns likely looking very different from one subreddit to another.
The token could be used to award active and popular members as previously mentioned, but those rewards would come directly from Reddit. Users will be able to buy and sell GIFs and images, emojis, membership into certain groups, and more.
In a recently released video outlining how the new system will work, the unconfirmed new points system seems to be a sure thing.
For the first time in Reddits long history, users will now be financially rewarded for their contributions to the subreddits they already love.
Why Reddit adoption could be good news for Ethereum
Reddit may have been, at one point in time, a quirky social media platform for a select few, but that has changed considerably over the past several years. Not only is Reddit now squarely in the mainstream of social media-type information sharing platforms, but it is also growing in popularity every day.
To put it to the numbers, there are nearly 26.5 million US reddit users monthly. That number is just a drop in the bucket, however, as there are more than 330 million monthly users globally. Research also suggests that the demographics between crypto users and Reddit account holders have a lot in common. What does that mean for Ethereum? Well, millions of crypto-enabled internet users hungry for a way to spend and receive their coins and tokens on their favourite web-based platforms means Ethereum usage is set to hit a major spike.
Many users have taken to Twitter and other social media platforms to voice their enthusiasm and positive outlook for the incoming effects of a world where millions of devout Reddit users will use their favorite blockchain as the common currency.
In this Tweet, for example, we can clearly see the enthusiasm of one popular YouTube analyst, as he calls the move nothing short of bullish.
With such an impressively large user pool and the obvious potential for an explosion of Ethereum use as the new Community Points system develops, it seems perfectly plausible that ETH would only gain traction in both global acceptance and value.
More about ERC-20
To get a clearer picture about what ERC-20 means for Ethereum and how adoption by a major platform like Reddit could spell very good news for ETH, we should consider the nature of the ERC-20 token.
For starters, Ethereum is more than just a cryptocurrency. It is also a blockchain that is structured to allow various tokens to run on its networks. These tokens represent a large number of varied asset types that utilize the Ethereum blockchain to trade, buy and sell. Of these tokens, ERC-20 is one of the most important as it has become something of a template for virtually all other tokens on the network.
In fact, ERC-20 is the playbook for developers looking into and launching new tokens on the Ethereum blockchain. It outlines rules that need to be followed on the Ethereum network as well as use case scenarios that assist developers in getting a complete view of how their token should behave once launched.
A few popular examples of ERC-20 tokens include Basic Attention Token, Maker, USD Coin, Augur, Chainlink, Ox, Pundi X, and QASH. In short, ERC-20 is essential to Ethereum and any news pointing to an exponential growth in its use is certainly worth a second look.
Should You Buy Ethereum Today?
The answer to whether you increase or maintain your bags of Ethereum today, tomorrow, or in the near future is solely up to you, but we can say that there are many indicators pointing toward bullish trending over the next few months. Markets of all kinds will likely resume their normal behavior over the next few months. And, by the time they do, crypto and blockchain will have considerably closed the gap between fiat and digital assets.
Products and systems like Reddit’s Community Points are going to continue cropping up because crypto users want nothing more than to have more control over how they can use their coins and tokens. There is an obvious market for blockchain and crypto systems to be baked right into the platforms already in use, and once that happens fiat is going to have a tougher time competing when it comes to the speed and cost of conducting online payments. That is, of course, until Central Banks and traditional currencies come up with digital coins.