The popularity of Bitcoin has led to the rise of several cryptocurrencies. Most of these were designed to improve upon Bitcoin or to carve out their niche in the financial sector. Among the first few coins to come into the picture after Bitcoin were the XRP, Litecoin, and others. However, with the appearance of Ethereum, there are some drastic changes in the crypto industry.
Ethereum is more than just a payment cryptocurrency, it is a supercomputer that has smart contracts for developers to make use of the decentralized applications. These things led to the initial coin boom that was seen in 2017. That saw the many new ERC tokens getting created on the Ethereum blockchain. Though it is now worthless today, it led to the propelling of Ethereum prices to the current high it has reached.
Is Ethereum a good investment?
Yes, provided you are willing to try new technology. Here are some reasons it can be quite profitable.
It is high on innovation
The year 2017, saw a pop in the crypto bubble but Ethereum hung on. Just like the 90’s internet bubble after which it gained momentum, Ethereum too got momentum and strength. Many new and fascinating applications are being built on Ethereum. Some of them include electric vehicle charging stations, microgrids, health care records, home mortgages, and more. So what’s in it for the investor? You will stay ahead of the curve and also be at the forefront of development in sustainable energy.
It is decentralized
There is another reason why it is a good investment and that is because it is decentralized. The data stored on the blockchain is decentralized and cannot be shut down by any government agency. It will remain uncensored and alive as long as Ethereum is in the market which can be a really long time.
Is a World Computer
Ethereum is a smart computer where there is no necessity for a third party to perform transactions. These are irreversible and trackable as they are built on blockchain. This smart contract capability was what helped the Ethereum price to be on par with Bitcoin in 2017. Additionally, Etherum is showing the way for better levels of interconnection for individuals and businesses across the world. Due to all these features, it makes sense to invest in this cryptocurrency.
Diversification
Bitcoin is a saturated market with the price of it not reachable to many of the investors. Additionally, Bitcoin is only a ‘currency’ unlike Ethereum which offers more than that. It offers many decentralized applications as open-source on which many other applications can be built. With Bitcoin, you can pay for things and store value while with Etherum you can tokenize assets, program smart contracts, and more. Ethereum is still uncapped and the ETH to INR price is reasonable compared to Bitcoin. So if you are looking to invest in something beyond Bitcoin, then Ethereum is a good choice.
Reasons that can kill the Ethereum Buzz
Now that you know the brighter aspect of buying this cryptocurrency, there are a few flipsides too. Consider these too to have a balanced perspective on things.
Ethereum Killers are a threat
Ethereum is the first crypto to run on smart contracts, but since then there are many. These are the Ethereum killers which are faster, stronger, and better.
Security threats
Smart contracts were called DAO in 2016. But there was a hack and because of that people lost money. Though it was refunded it is still in the minds of the investors as hackers are a threat even now. The safety of storing Etherum is on the user, it is manageable but requires little work.
Looking at the pros and cons Ethereum is a good investment. The focus of this crypto is not on price but on improving the platform.
