With the recent surge in the popularity of cryptocurrencies, many people wonder if investing in digital currencies is a good idea. And, of course, that’s a smart move for anyone looking for an excellent place to put their money. If you have followed blockchain news or cryptocurrencies lately, you must have heard about Ethereum.
But the challenge is that most people need to know if investing in this digital currency is wise. Ethereum is one of the most well-known cryptocurrencies and has a lot of potential as an investment. It offers some unique features that make it very different from Bitcoin and other cryptocurrencies, like being able to support smart contracts.
If you are struggling with deciding if Ethereum is a good investment, here are some reasons you may need to consider.
Ethereum Is the Second Most Valuable Cryptocurrency, Right after Bitcoin
Ethereum is the second most valuable cryptocurrency, right after Bitcoin. It has a market capitalization of over $40 billion, which makes it one of the largest cryptocurrencies in terms of market capitalization. Ethereum is also one of the most widely used blockchain platforms for various applications because its intelligent contracts have helped solve many general issues arising from blockchain technology.
Many people see this as an advantage because it means that a large community is supporting Ethereum and helping it grow and develop new features for its platform. That should keep things running smoothly for some time to come!
Ethereum Is One of the Most Exciting Blockchain Applications Being Developed Today
Here’s how it works. Ethereum is a platform for smart contracts, which are agreements that execute automatically when certain conditions are met. When you get into a car, your seat belt clicks and locks as soon as you sit down. That’s an example of an intelligent contract: one party makes a promise to another based on an established set of rules, and then the software executes that promise automatically. That means users no longer rely on traditional organizations like banks or governments for trust when doing business online.
Ethereum Is More than Just a Digital Currency
Ethereum was also designed not just to be another cryptocurrency but also as something called “Turing complete,” which means that any developer can write their smart contracts on top of this platform using their programming language (which can then be compiled into Ethereum). Developers can create their decentralized application (DApp) on top of this network without prior knowledge about how blockchains work; they need access via web browsers or mobile applications (like Metamask).
Ethereum Is Backed By a Strong Team of Developers
That is one of the reasons Ethereum has grown so much in its diversity and popularity. The Ethereum Foundation is a non-profit organization dedicated to developing the Ethereum platform. The team is made up of experienced developers who are constantly working to improve the Ethereum network.
Ethereum Has Lots of Use Cases
No other cryptocurrencies come close to Ethereum when it comes to usability. And that has significantly contributed to its popularity. It’s useful for everything from smart contracts to creating virtual worlds that can be used in gaming and entertainment. Ethereum could be a good investment because it has lots of use cases, including:
- Virtual reality: Ethereum is being used to create virtual world platforms where people can interact with each other in real time. This technology could have applications in gaming and entertainment, as well as communications and education.
- Fintech: Ethereum’s blockchain technology is used by banks and financial institutions to create new ways of doing business and storing data. The technology behind Ethereum has created opportunities for new companies using blockchain to create new financial services.
- Energy: The peer-to-peer nature of Ethereum makes it possible for people to sell their surplus energy directly to each other without going through an intermediary like a utility company. This technology could be used by homeowners who want to install solar panels on their roofs or wind turbines on their property but want to avoid the hassle of dealing with utility companies themselves!
With these things in mind, it’s easy to see why Ethereum could be a good investment. The more people use it, the higher the demand for its tokens (called Ether). And if there’s a higher demand for something, there’s usually a good chance that its price will increase.
Ethereum Has an Interesting Price History
That is another factor that makes investing in Ethereum worth it. The digital asset has remained consistent in its price over the years. Even when the crypto market is hit generally, like it is presently, Ethereum has done reasonably significant over the years.
Let’s take a quick look at Ethereum’s price history to know what to expect in the coming years. In 2015 when the crypto asset was launched, it sold at $200 two years after. And by January 2018, Ethereum was already selling at $1,066.72. But it fell from its high again and sold at around $200 in 2020.
Ethereum’s price rose again in January 2021, reaching a high price of $1,285. And since that time, Ethereum has consistently grown in price.