Is Investing in Ethereum Right Now Still Worth It?
Ether, the native cryptocurrency of the platform Ethereum, almost ousted Bitcoin as the most profitable digital asset in June 2017.
11:57 25 January 2021
This is because of Ethereum’s innovation in smart contracts.
Simply put, smart contracts are computer protocols that facilitate, verify, and enforce the performance of a code. This means, there’s no need for a third party to perform credible transactions just like cryptocurrency exchanges. These smart contracts also leave a data trail called blockchains that can be trackable and irreversible. This is how Ethereum makes cryptocurrency seamless and a lot safer than any other platform.
So is that enough to justify investing in Ethereum? Probably not. But here are some of the reasons why Ethereum is a good investment for the future.
Why is Ethereum still worth investing in?
Ethereum is still in its infancy stage, just like cryptocurrency. The early “adopters” - people who embrace new technology in the hopes that it will someday grow and mature, have seen Ethereum’s potential on the world stage. It’s not really about dominating the cryptocurrency race but wielding all of the cryptocurrencies in the market. So why invest in a future that is not yet fulfilled?
It’s Still The Second Most Profitable Digital Asset
The year 2020 has marked a very large dent in business all over the world but cryptocurrencies survived. As of this January 2021, ETH prices skyrocketed that it is again closing in with Bitcoin’s revenue and profits after it happened the first time in early 2018. The cryptocurrency has reached 17% within a day at $1,439 according to CoinDesk.
This trend is expected to still continue as individuals and businesses alike find their ways to get back up after a very terrible financial loss last year. Plus the demand is exponentially moving. Research shows that Ethereum’s gains in 5 years will be a whopping 70.974%. That means if you invest $1000 now, you will get $709,740 in 5 years! And that’s not a false claim, the projection came from analysis of previous statistics.
Adoption of Ether
As said, the cryptocurrency industry is still young and is expected to grow more. What you have to understand is Ethereum is used by ICOs (Initial Coin Offerings) which means it is a launchpad for new tokens. And because Ethereum is needed by the system to exist and progress, it’s just right to project that it will stay for a long time and will profit even more from it.
ETH, as of late, has been in the top three cryptocurrencies used by crypto traders and will likely stay for the longer part of the haul of cryptocurrency trading. And probably will stay at the top.
These two reasons may just be enough for you to be convinced that Ethereum is a good investment. However, like all the other cryptocurrencies, ETH is a highly volatile investment that can give you the highest peak and the lowest loss. So better check your risk appetite before diving into the world of crypto and investing in Ethereum.