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Is Ethereum A Good Investment? Pros And Cons Of ETH – Tekedia


KEY POINTS

  • Ethereum is predicted to be the next trillion-dollar cryptocurrency. It benefits from a growing dApp and DeFi ecosystem.
  • While Ethereum will likely not overtake Bitcoin it is still an excellent investment opportunity. Ethereum has much larger goals than Bitcoin, it is a different kind of investment.
  • It isn’t too late to buy Ethereum. Ethereum is predicted to rise exponentially in price, and so it is still early to invest.

The cryptocurrency market continues the bearish trend that started earlier in the year. Without much big news, it is only natural to wonder, is Ethereum a good cryptocurrency to buy now?

This is a legit question, given that the world economy is expected to enter a recession in 2023. There is also talk of the Federal Reserve raising interest rates by up to 100 basis points.

With this in mind, is Ethereum worth buying now?

Let’s do an in-depth analysis of Ethereum to figure this out.

Virtual currencies are highly volatile. Your capital is at risk.

Why Ethereum Worth Buying Right Now

If you are new to the world of Ethereum investing, you might be wondering if Ethereum is a good investment, or should I invest in ETH? Well, the easiest answers to those two questions is yes – Ethereum is likely a good investment and investing in Ethereum could pay off big time.

One of the biggest reasons to invest in Ethereum is Ethereum 2.0, an upgrade of Ethereum’s algorithm that will transition it from proof of work to proof of stake. If the transition is successful, it may increase the price of Ethereum immensely. But that’s just one of many reasons why investing in Ethereum could be profitable.

Ethereum has increased significantly since the start of last year, and it shows no sign of slowing down. Experts believe the ETH coin has plenty of growth ahead and that investing in Ethereum is a smart financial decision for the long-term. Therefore, it could be a good time to invest in Ethereum ETH while the coin is performing very well.

In this article, we’ll break all Ethereum-related myths circulating online and help you come to your own conclusion on if you should consider investing in Ethereum.

Virtual currencies are highly volatile. Your capital is at risk.

Reasons Why Ethereum Is A Good Cryptocurrency To Buy Today

As Ethereum is the second-largest blockchain platform, many crypto experts believe that Ethereum is a good investment compared to other cryptos. Despite all the ups and downs in Ethereum’s history, analysts believe that Ethereum’s price could grow further in the long-term.

One of the factors that will influence investing in ETH in 2022 is Ethereum 2.0, the second iteration of Ethereum. Ethereum 2.0 will focus on energy efficiency and staking instead of mining. Note that proof of stake involves the active transaction validation and network support by holding funds in a crypto wallet to ensure safety.

Another reason to consider investing in Ethereum is the increasing use of blockchain technology, which attracts more and more successful crypto traders. Such technology can facilitate online payments, loan distribution, and commodities trading.

Ethereum is the largest and one of the oldest altcoins in the market today. Since it launched in 2015, Ethereum has given investors a pretty high return, up to 284,861.87%.

That said, the market dynamics are ever-changing, and how the market was between 2015 and 2017 is slightly different from what it is today. At that time, retail money was the key market driver. Today, institutional money is taking an even more significant role in the market, and there are many regulations.

With all these changes, it is pretty natural to wonder, is Ethereum a good investment today?

To answer this question objectively, let’s take an in-depth look at the advantages and downsides of buying Ethereum. For a start, below are 8 reasons why Ethereum is a worthy cryptocurrency to invest in now.

1. Ethereum Has Real-World Usage

There are a lot of cryptocurrencies that have no real usage besides speculative trading. In fact, a huge chunk of altcoins falls under this category. Ethereum is one of the top trending cryptocurrencies that have a high utility.

Ethereum use cases span from DeFi to NFTs. For context, all the best DeFi cryptocurrencies in the market today are Ethereum-based. Similarly, all top NFT cryptocurrencies like ApeCoin, Decentraland, and Axie Infinity are based on Ethereum.

Ethereum’s dominance in various cryptocurrency use cases has two advantages. The first one is that the demand for Ether tokens will grow going into the future. Secondly, investors seeking a mix of value growth and some element of stability will increasingly see Ethereum as a smart cryptocurrency investment.

The result could be an upsurge in the value of Ethereum once broader market factors become favorable to the cryptocurrency market.

If you are optimistic that these use cases could play a role in Ethereum’s value growth, then the next thing to consider is where to buy Ethereum safely.

Below are some of the best exchanges to buy Ethereum.

  • Coinbase
  • Huobi Global
  • Binance
  • eToro

 Buy Ethereum Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

2. Ethereum Is Becoming Environmentally Friendly

Environmental issues have become a major concern for investors across all markets. That’s because the world is heating up, and it is everyone’s responsibility to ensure that we leave behind a livable planet for future generations.

This is why cryptocurrencies with a low environmental footprint are becoming more attractive, especially to institutional investors. Ethereum has made significant strides on this front by changing from a Proof-of-Work algorithm to a Proof-of-Stake algorithm.

The shift started in 2020 and is almost complete in what is known as Ethereum 2.0. Once the transition is complete, Ethereum’s carbon footprint will be less than a percentage of what it is today.

That’s because rather than mining, which is energy-intensive, protecting the network will now entail buying tokens and being rewarded with more tokens for staking. This makes Ethereum attractive to institutional investors, who mostly have a social responsibility to their backers.

This could see Ethereum’s demand grow, making it a high potential cryptocurrency to invest in at current prices.

3. Ethereum Is Censorship Resistant

Lately, there has been an increase in censorship-related issues on the internet. Big tech companies have so much power and can determine what is said or not said on their platforms.

Ethereum is coming in as a solution to the issue of censorship, and that’s a big deal at this point. Ethereum is censorship resistant because it has no central point of control. This means no one can shut down Ethereum; by extension, the data stored on Ethereum cannot be stopped, not even by the government.

This factor could see even more Dapps launch on the Ethereum blockchain going into the future. Since it requires Ether tokens to launch Dapps on Ethereum, this rising demand will likely translate into a higher price for the tokens. That’s why Ethereum stands out as a highly undervalued crypto today. The price is low, but the potential demand is high.

4. Ethereum Has The Potential To Redefine The Internet

The internet is huge, and since it became a thing has changed the world as we know it. Today, billions of people are connected to the internet, and trillion-dollar companies have their origins in the internet age.

Now imagine a scenario where Ethereum changes the world as it is today and becomes a world computer. Since it launched, Ethereum has experienced a surge in popularity as a launch platform for decentralized applications.

This use case continues to grow, and today, Ethereum is used as a launchpad for all kinds of smart contracts. Ethereum is being used to digitize diverse assets in a decentralized environment.

As this adoption grows, so does the growth in popularity of Ethereum’s programming language, Solidity, which is further helping entrench Ethereum as the launchpad for Dapps.

This places Ethereum in a unique position to become the world’s largest and most important decentralized computer, effectively reshaping the internet. With time, multi-billion-dollar decentralized organizations with global influence will run on Ethereum, which is a big deal in terms of ETH’s potential value growth. It makes Ethereum a smart cryptocurrency investment today when adoption is still in its infancy.

5. True Decentralization Is Proving To Be An Asset

If you are still wondering whether Ethereum is a smart investment today, consider that it is one of the most decentralized cryptocurrencies in the market today. In fact, Ethereum is almost at par with Bitcoin when it comes to decentralization.

But why does Ethereum decentralization matter? For the last couple of years, it didn’t matter that much. Most of the top performing cryptocurrencies in the 2020/21 bull run were heavily centralized. Similarly, many top-performing Ethereum alternatives mostly have an element of centralization.

However, things are changing, and investors are beginning to realize that decentralization may be one of the most significant assets you can count on in this market. This followed the collapse of Terra, a $40 billion project, and the move by Celsius and a couple of other cryptocurrency platforms to limit withdrawals.

This is a wake-up call for investors that there is a risk in putting all your hopes in an individual or a single organization in an unregulated market like crypto.

The power of decentralization makes Ethereum a heavily undervalued cryptocurrency at current prices. More investors seeking a mix of safety and gains are likely to turn more to Ethereum going into the future.

6. Ethereum Tokenomics Are Changing

Since the hard fork of August 2021, Ethereum has experienced a massive change in its tokenomics. Unlike in the past, the more Ethereum is adopted, the more Ether is burned in the form of fees.

This was why Ethereum rallied from around $1k in August 2021 to highs of $4800 by December 2021. Going into the future, Ethereum is likely to get even more adopted thanks to its resilience even in tough market conditions.

With aspects of the market, like DeFi and NFTs, all likely to grow, the burn rate of Ethereum will accelerate. The result is that Ethereum’s price could go up exponentially as demand outstrips supply going into the future.

Of all the reasons to consider investing in Ethereum, this is probably one of those that make Ethereum a smart cryptocurrency investment in 2022.

7. Ethereum Is Handling The Competition Very Well

The Ethereum blockchain has faced a lot of competition since 2017, when its scaling issues became most apparent. This was followed by a rise of many Ethereum killers, all angling to dethrone Ethereum from its position as the number one Dapps platform.

However, none of these competitors have in the last 5-years managed to dethrone Ethereum…



Read More: Is Ethereum A Good Investment? Pros And Cons Of ETH – Tekedia

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