in journalism from the University of Missouri-Columbia. According to statistics from Coinmarketcap, Ethereum is the second most valuable cryptocurrency by market capitalization with more than 41.3 billion USD and is being traded for about 377 USD (statistics on September 17 . This was a new high for an artwork that exists only digitally. Previously, both cryptocurrencies used the proof-of-work, or PoW, mechanism to validate transactions and secure the blockchain. If BTC surges in value, ETH also tends to follow suit. First, it's important to distinguish the difference between Ethereum and Ether. At that time, you could buy one of the new digital tokens for less than a penny. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, 2 Stocks That Are About to Make Their Shareholders Richer, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. The Ethereum network is at the forefront of the still-nascent decentralized finance, or DeFi, area. Many or all of the products featured here are from our partners who compensate us. Its price had sunk below $1,800 as recently as July. Thanks to it, the speed will increase, the risk of a 51% attack will be reduced, and the project will become more sustainable. As experts believe, the price will keep growing . It's been a wild ride for Bitcoin over the last 14 years. In addition, Ethereum is now being slowly upgraded to Ethereum 2.0. #1 Ethereum Killers, a real threat? Unlike a bond, you arent promised payments in the future. Storing ETH and other crypto carries risks. Conclusion: Is Ethereum A Good Investment? Ethereum has seen tremendous growth, but its price has also fallen by 50% or more on many occasions. While there might be a correction after a huge price surge, the involvement of large investors helps provide a level of price support. Out of the many cryptocurrencies that have made huge waves in the crypto world recently. Answer (1 of 10): There are a number of reasons why Ethereum dominated Bitcoin in 2021, including the emergence of NFTs and those trends only seem set to accelerate in 2022. That is a gain of 87%. However, the Ethereum blockchain is used for a variety of purposes, which gives it an advantage. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. According to Ethereum founder Vitalik Buterin, the update's primary focus is to address the platform's scalability challenges by fragmenting the ETH database, enabling the network to scale while preserving its decentralized nature. We at Cryptomaniaks have had our fair share of challenges and mistakes. Artificial Intelligence Stocks: The 10 Best AI Companies. As the years progress, Ethereums technology will grow. However, even just a fraction of Ethereum can be purchased starting on most exchanges or trading platforms at a very low minimum. Tags: investing, cryptocurrency, Apple Inc., Meta Platforms Inc, CME Group, Nike, Walmart, Best Buy, McDonald's, MicroStrategy, Block, Tesla Motors, bitcoin, Ethereum, decentralized finance, blockchain. With S&P 500 companies alone sitting on trillions of dollars in cash and short-term investments, the growing acceptance of holding Bitcoin on balance sheets has potential to be a massive catalyst for BTC. Ethereum is typically swapped in exchange for the hottest new tokens, which raise demand for Altcoin. These are great options for a starter portfolio. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. After Phases 0 and 1, which will take place in 2020 and 2021, respectively, the Ethereum team is already hashing out what Phase 2 will entail, and how long it will take to reach it. This implies that you may purchase several coins at a significantly lower cost. So, here are the 2reasons why now might be a good time to buy Ethereum and why might ETH be a good investment: Ethereum has faced many criticisms: slow network, power hungry mining, scalability. Is Ethereum a good investment? In October, Rostin Behnam, the chair of the Commodity Futures Trading Commission, said that Ethereum is a commodity and should fall under CFTC regulation. Ethereum Classic kept the old blockchain -- along with the hacked funds. Transaction fees can be a drag. Aside from their rapid rises and their distinction as the two biggest cryptocurrencies by market capitalization, the similarities more or less end there. The team is working on Ethereum 2.0 now. The Motley Fool has a disclosure policy. Investors and traders may anticipate fewer interest rate hikes than last year and may be interested in buying crypto assets. In October 2021, ProShares Bitcoin Strategy ETF (BITO) launched, becoming the first SEC-approved crypto-based ETF. Everyday consumers can earn Bitcoin via services like Lolli, the first Bitcoin rewards application allowing people to earn BTC back when shopping online. Here is a list of our partners. Whether you choose to invest or not, be sure you're making this decision carefully. The Winklevoss twins, the famous Harvard alumni who claim Mark Zuckerberg stole the idea for Facebook now Meta Platforms Inc. (META) from them, famously tried to start a bitcoin ETF, but they were rebuffed by the Securities and Exchange Commission. Copyright 2023 Market Realist. It is unfair to only look at one side. Subscribe to our daily newsletter to get investing advice, rankings and stock market news. The Ethereum network, on the other hand, brings virtually limitless possibilities. on this page is accurate as of the posting date; however, some of our partner offers may have expired. Latest Cryptocurrency & Blockchain News and Updates. This smart contract tracking ability is one of the unique aspects that sets Ethereum apart. The so-called 2017 bubble has popped. This means that Ethereum is in good hands. One of the biggest criticisms of cryptocurrency at large has been its massive carbon footprint and high energy demand, an issue ETH has now directly addressed while Bitcoin has not. Bitcoin was the first cryptocurrency that CME Group Inc. (CME) offered futures contracts on in late 2017, allowing investors to wager on prices at specific dates in the future. So why does this matter if the price is still falling? Unlike Bitcoin, which is pretty much like cash for the Internet, according to Bitcoin.org, Ethereum has grander ambitions. Just like the internet -- which didnt die after the 90s internet bubble -- Ethereum has gained strength and momentum. and have not been previously reviewed, approved or endorsed by any other What are the ether price predictions for 2021 and beyond? In either case, it's not 2009 anymore: Both currencies have sprinted past the proof-of-concept phase and it's now time for risk-tolerant investors who haven't considered this asset class in the past to start taking both BTC and ETH seriously. If Ethereum were to disappear overnight, a much larger swath of the crypto world would also vanish. As a result, risky investments should make up just one part of your. In this article, we will attempt to forecast how Ethereum's price may behave in the future. In addition, filed for bankruptcy in 2022. Ethereum 2.0 is an updated version of the blockchain that's set to roll out later this year or early next year, and it claims to use 99.95% less energy than the current technology. By keeping most of your money in safer investments, you can limit your risk in the event that Ethereum takes a turn for the worse. Ive been where you are asking myself is Ethereum worth investing in. Developers of the technology are currently working to shift how coins are mined to make the process more energy-efficient. You can earn additional Ethereum by staking. Eberhardt had previously referred to The Merge, which was finally completed at around 7.45am on 15 September 2022, as "one of the most influential events in the history of crypto by impacting Ethereum both technically and economically". Not necessarily. The rate of new BTC creation also gets smaller over time through a process known as Bitcoin halving, which cuts the pace of bitcoin creation in half every 210,000 transactions. As its technological advantages gain steam, Ethereum investors could see $1,500 in the near term and $2,500 sometime by the end of 2021. If youre in the game to try and make some money, then youre looking for the one that will make you money. Instead, he will work on fixing the flaws and improving Ethereum -- which often leads not only to increased price, but also to a sustained higher price. Crypto could be a life-changing investment, but it's not right for everyone. Is Ethereum a good investment in 2021? NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. This site contains affiliate links. Ethereums price has significantly jumped, but it has also seen major dips. after opening a Webull account, activating crypto trading, and completing one [1] crypto trade before 3/31/2023. The first step is to identify a good exchange that supports ether. And while a hardware wallet can give you additional protection against crashes and hacks, its still possible to lose your wallet, and with it, your assets. Here are some of the best picks for 2023. 2023Cryptomaniaks. By contrast, BTC is down $1,059 from $55,750 to $54,851, or about -2%. The implication here is pretty clear. Theres a group of investors that follow trends. It has more media coverage and is the most established crypto asset. It has all these different applications being built on top of it. No major companies have publicly bought Ether to maximize returns on cash. About the author: Kurt Woock is a writer at NerdWallet. The cost to use Ethereums network is based on supply and demand if the network is busy, youll pay more. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Its price in November 2022 was less than a quarter of what it was one year earlier. Buy Ethereum Instead. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Cryptocurrency is not a legal tender and is subject to market risks. This influences which products we write about and where and how the product appears on a page. (Getty Images). Ethereum is a dominant force in crypto, but that doesn't mean it's risk-free. It's no surprise that investors are interested in cryptocurrencies. These gas fees, which compensate participants for validating transactions, can be outrageous, especially for smaller transactions. I would simply say -- diversify: Buy both. Ethereum is currently priced at roughly $380 after a fall from the current 2020 high of over $490. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Disclaimer: NerdWallet strives to keep its information accurate and up to date. Ethereum's high gas fees. It made many people immediately jumped on the wagon to enjoy the deserving fruits of digital currency. Let's put that performance in perspective. It still manages to feel "do-it-yourself" in an era . Neither the author nor editor held positions in the aforementioned investments at the time of publication. 3 Cryptocurrencies Poised for Monster Rebounds in 2022. Contrast that with Apple Inc. (ticker: AAPL), the archetype of a fantastic stock and one of the best-performing equities of all time. It was a top-five crypto within a year, measured by the total value of its circulating supply, and in early 2016 it was second only to Bitcoin, a position it still holds today. Ethereum also does not have a supply cap like Bitcoin, which is limited to just 21 million Bitcoin. With this in mind, the answer to the question is Ethereum a good investment starts to look like a no-brainer. The great thing about institutional investors is that they tend to have a long horizon. What Is Cryptocurrency? Ultimately, the debate between Bitcoin and Ethereum as investments comes down to an investor's risk profile. Since the hard fork of August 2021, Ethereum has experienced a massive change in its tokenomics. Consider these diversified no-load fund picks for your retirement or taxable investment accounts. Which Is Safer: Stocks or Cryptocurrency? With Bitcoin, you can store value and pay for things, while with Ethereum, you can program smart contracts, tokenize assets, and more. Previously, it launched bitcoin futures trading. Yield-hungry investors can make use of a variety of income-generating assets. Here are 5 reasonswhy is Ethereum worth buying and why to take action and become an early adopter and investor. Users can also create decentralized apps that facilitate gaming, gambling and even the trading of other digital currencies. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/ethereum-will-catch-up-to-bitcoin-within-the-next-six-years-if-past-performance-continues/. This will give you a more balanced perspective. It also allows owners to stake Ethereum, earning additional ETH in return. Also, the network can only process about a dozen transactions per second, regardless of demand. All rights reserved. Remember: You should buy Ethereum now only if youre prepared to keep your ETH safe! But it may not be the best store of value, because Ethereum does not have a maximum supply. Pre-qualified offers are not binding. Timing - dont buy at an all-time high, dont sell at an all-time low. Also, the network can only process about a dozen transactions per second, regardless of demand. ( Image Source : Bastian Riccardi/Pixabay ) In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. Dont leave your crypto assets on exchange platforms. In fact, over the course of 2018, Ethereum's price plummeted by nearly 94%. And because these smart contracts live on blockchain technology, they are trackable and irreversible. Investing in Ethereum is risky, but it could potentially be lucrative. It still has bugs here and there, but for people who are willing to be involved and try this new technology --- it can prove quite profitable. Master limited partnerships offer reliable and robust payouts for investors. Katie Brockman has no position in any of the stocks mentioned. Last year, the Fed cranked up interest rates eight times since March 2022, including four consecutive 0.75 percent base points increases to tackle inflation. ( Image Source : Bastian Riccardi/Pixabay ). Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. But it has been going on for a good while. While we're here, I've compiled my favorite platforms to buy ETH, and I recommend you use one of them: *eToro Disclaimer: Your capital is at risk, The World Economic Forum (WEF), in their surveys and research, projected that up to 10% of the global Gross Domestic Product (GDP) will be stored and transacted with the help of blockchain technology by 202527.. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Other cryptocurrencies are issued on it, NFTs trade freely on the platform, and the entire field of decentralized finance was ushered in with Ethereum and its versatile ability to create smart contracts. 7 Penny Stocks Poised for Explosive Growth in 2023, Ethereum Is a Much Better Long-Term Crypto Investment Than Bitcoin. Some experts say that the comparison between Ethereum and Bitcoin is like comparing electricity with gold. Sowhat happened was thatthe DAO raised $150M in ETH by spring 2016. Ether might see broader adoption after the network upgrade is complete, which should boost its price. Bitcoin has the potential to be used as a way to transfer and store value. But if youre keen on sticking to one or the other then lets examine which one is better for you. Like Bitcoin, you can invest directly in Ether by purchasing coins. From an investor perspective, it just kind of. Fundstrat Global Advisors analyst David Grider ether price prediction is that the altcoin could reach $10,500 in the long term. To make the world smarter, happier, and richer. Another reason you might consider ether a good investment is the launch of ether futures trading. Of course, if Vitalik manages to release these updates on time, the value and price of Ethereum will increase significantly. Answer (1 of 246): Asides from Bitcoin, Ethereum is the next big thing about cryptocurrency. So, should you buy Ethereum? This information may be different than what you see when you visit a financial institution, service provider or specific products site. You should buy Ethereum if youre more interested in innovation and use cases rather than in scarcity and the economic model of Bitcoin. But as weve made mistakes buying and selling Ethereum, weve also learned. Ethereum was at $198.47 on April 28 last year. But before you invest, it's important to understand the advantages and disadvantages. They can use a smart contract built on Ethereum. The ETH to INR rate was around 345,480 at that time. The last time AAPL traded at one five-hundred-seventy-fifth of its current price was in 2003, some 20 years ago. Bitcoin was initially meant to be a cryptocurrency -- emphasis on currency. Ethereum is different and is intended to be a platform for smart contracts. The Motley Fool owns shares of and recommends Bitcoin and NVIDIA. Also, as the Ethereum network undergoes changes, some of the Ether coins could be destroyed in the process. That mining process requires a significant amount of energy, and crypto critics have raised concerns over its impact on the environment. Its set to be released in phases, starting from December 2019. What about 50%? The Shanghai update is one of the most anticipated events in the cryptocurrency industry, attracting the attention of crypto enthusiasts worldwide. His passion and genius are committed to improving Ethereum no matter what. Ethereum is the most-actively used blockchain. Ether costs around $4,100 per coin, as of this writing, while Bitcoin costs around $57,400 per coin. Moreover, it is likely to continue to do so. This means there is no real floor in terms of Ethereum investing. She has edited articles on a variety of topics, including business software, Medicare and home improvement. I postulated that if Ethereum rises three times as fast as Bitcoin, it would take eight years or less for Ethereum to catch up to the same price as Bitcoin. Finally, you might need to create a separate crypto wallet to hold your ether coins. A Guide For Beginners, What Is a Blockchain? Crypto Rebound: The 1 Cryptocurrency I'd Buy Right Now, These Are My Top Risk-Averse Cryptocurrencies, The One and Only Reason I Am Buying the Ethereum Dip Today, 2 Reasons to Avoid a Roth 401(k) for Your Retirement Savings, Want $1 Million in Retirement? supply of 500,000,000 TRAC coins. With a smart contract, you dont need a third party to perform credible transactions. This will give you a more balanced perspective. However, this does not influence our evaluations. Before you invest in Ethereum, think about your tolerance for risk. Unlike gold, however, newly discovered reserves aren't possible, and around 92% of all Bitcoin, or roughly 19.3 million, have already been mined. Ethereum Merge and Everything in Between. The table on the right shows the result of this trajectory. Uncertainty, even about government regulation, leads to a murkier investment environment. For example, year-to-date ETH is up by $1,993 from $737 where it was on Dec. 31. As a result, traders and investors are likely to buy ETH to take advantage of its anticipated utility services post-update, driving its value further. For the upcoming trading day on Thursday, 2nd we expect Grayscale Ethereum Trust (ETH) to open at $7.37, and during the day (based on 14 day Average True Range), to move between $6.80 and $7.78, which gives a possible trading interval of +/-$0.486 (+/-6.67%) up or down from last closing price. Historically, this has resulted in periods of frustratingly high prices, exceeding $190 at one point.