Learn More. Perhaps fittingly, the site's technical analysis for ether was bearish, with 15 indicators sending out bullish signals and 14 making bearish ones. Some of your options include: Ethereum is a widely used technology that has a variety of applications. 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/. Facebook, Twitter, Youtube, Instagram, all of these companies reserve the right to delete, modify, or hide content. In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. In fact, researchers from the University of Cambridge estimate that the Bitcoin mining process uses more electricity than the entire country of Sweden. It came out in 2016. 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. Another reason you might consider ether a good investment is the launch of ether futures trading. 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. 1125 N. Charles St, Baltimore, MD 21201. Ethereum has seen tremendous growth, but its price has also fallen by 50% or more on many occasions. Plus, Ethereum 2.0 will beleaps forward for blockchain technology and smart contract use cases. First, it's important to distinguish the difference between Ethereum and Ether. And while a. can give you additional protection against crashes and hacks, its still possible to lose your wallet, and with it, your assets. Ethereum's upcoming Shanghai update, scheduled for release in March this year, could be the primary driver behind the surge in the altcoin's value. HODLing cryptospeak for holding assets for an extended period of time can contribute to a surge in the price to a certain extent through increased confidence in the cryptocurrency. There are plans to indirectly lower prices through higher transaction throughput, but that will require implementing unproven technology that isnt yet available. Government regulators dont always agree about crypto or how to treat it. Ethereums smart contracts can secure ownership of these items. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. 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. The Ethereum foundation is pumping $30 million into developing their platform -- which will bring fresh, innovative new dApps for us to use. Whereas Bitcoin is sometimes called a distributed ledger, Ethereum co-founder Vitalik Buterin and others sometimes describe Ethereum as a distributed computer. Sometime between year five and six, Ethereum will catch up to Bitcoin. Ethereum is still a high-risk cryptocurrency, and it's not the right choice for everyone. 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. Dont mistake Ethereums name recognition for stability or growth guarantees. Previously, she was a credit cards writer at NerdWallet for over five years. These are great options for a starter portfolio. Bitcoin has been around for twice as long as Ethereum. Ltd. Crypto products and NFTs are unregulated and can be highly risky. Compared to other cryptocurrencies, using Ethereum can be slower and more expensive. Ether also works as a virtual currency and store of value. Ethereum can help keep the free world remain informed because it is decentralized. Ethereums capacity to serve as a platform for other technologies and services is one reason some investors are upbeat about its future. Invest better with The Motley Fool. And this again, the upcoming update could be one of the reasons why investors and traders might be holding it. Is Ethereum a good investment? This means that Ethereum is in good hands. The world may be interconnected thanks to the internet, but Ethereum is showing new and improved levels of interconnection for businesses and private individuals around the world. It is unfair to only look at one side. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Making the world smarter, happier, and richer. Why Is Ethereum Seeing A Surge In 2023? But I was still wondering whether or not I should invest in Ethereum. Ethereum is the most-actively used blockchain. So should you buy Ethereum or Bitcoin? In 2022, many macroeconomic factors affected the global economy. Ethereum, however, is making moves to make the technology more energy efficient. 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 . Ethereum, unlike Bitcoin, plays a vital role in NFTs (digital assets tied to unique tokens), decentralized applications, decentralized finance and the creation of other cryptocurrencies. Ethereum has seen tremendous growth, but its price has also fallen by 50% or more on many occasions. Thanks to it, the speed will increase, the risk of a 51% attack will be reduced, and the project will become more sustainable. Unlike in the past, the more Ethereum is adopted, the more Ether is burned in the form of fees. People may receive compensation for some links to products and services on this website. It made many people immediately jumped on the wagon to enjoy the deserving fruits of digital currency. But proving it is another thing. Comparative assessments and other editorial opinions are those of U.S. News If ether breaks past the new $1,500 resistance, it should be headed toward $2,000. Foreign investors and people around the world wont need to run through the bureaucracy of foreign nations system in order to own a home or artwork in another country. But it may not be the best store of value, because Ethereum does not have a maximum supply. Buy Ethereum instead of Bitcoin, if you believe this outperformance will continue. Here's what the experts suggest. While technically, this is not an interest rate or a company dividend, the chance to earn. 2023Cryptomaniaks. is a plus for Ethereum owners who plan to have it long term. Like Bitcoin, you can invest directly in Ether by purchasing coins. Both have the potential to perform well over time as the world continues its shift to digital and cryptocurrency's acceptance grows. Ethereum moving to PoS means that instead of using computing power to finalize the blockchain, validators must have a certain amount of Ether themselves to approve a block of transactions. The Ethereum network is at the forefront of the still-nascent decentralized finance, or DeFi, area. Historically, this has resulted in periods of frustratingly high prices, exceeding $190 at one point. Unlimited supply. This would further eliminate banks and centralized third parties from the transaction process. One area where ETH definitely loses out to BTC, for the time being at least, is transaction fees. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105. More recently,. But the code wasnt secure. Now is the best time to buy Ethereum and prepare for the end of censorship. This uses a proof-of-stake system to validate blockchain transactions. Ethereums use case goes beyond crypto. Cost basis and return based on previous market day close. However, several reasons are attributed to the recent surge above the $1,600 and $1,700 levels. One of the only things standing in the way of Ethereum's continued meteoric rise is the amount of success it is currently experiencing. But the decentralized Ethereum network also makes it possible to create and run applications, smart contracts and other transactions on . It allows programmers to pick up digital artifact information used in the creation and sale of NFTs. While Bitcoin has a finite supply, Ethereum possesses vast utility and is poised to undergo numerous upgrades, resulting in exceptional scalability and applications soon. NFTs have been rising in popularity as a means of providing for the sale of digital assets. In other words, ETH has outperformed by almost 3 times, just since the beginning of the year. One of the criticisms of cryptocurrency in general is that it's incredibly energy intensive. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Not necessarily. But is Ethereum a good investment only because it innovates? As a result, risky investments should make up just one part of your asset allocation. Vitalik Buterin, the founder and CEO of Ethereum, announced they will release Ethereum 2.0 -- saying the future launch of Ethereum 2.0 will be 1,000x more scalable and cut energy costs by 99%. We will only display websites accepting The Wall Street Journal says Ethereums supply is determined by members of Ethereums community. It has more media coverage and is the most established crypto asset. In addition, lawmakers are still figuring out how to regulate the crypto market. For any cryptocurrency to survive, it needs to have some type of real-world utility. NFTs could change the way digital items are bought and sold, and the decentralized finance movement aims to revolutionize the banking industry. Master limited partnerships offer reliable and robust payouts for investors. While there might be a correction after a huge price surge, the involvement of large investors helps provide a level of price support. The upcoming upgrade will radically change Ethereum and is known as Ethereum 2.0, a multi-year transition from Proof-of-Work to Proof-of-Stake that will make ETH an interest-bearing . The DeFi explosion continued, with more than $100 million in total value being locked up. As with most investments, it's possible Ethereum's higher risk brings with it potential for higher rewards. Since this info will benefit everyone who reads our articles, we went ahead and made a list of the best platforms to buy Ethereum. I would simply say -- diversify: Buy both. Despite ETH being down by nearly 66 percent from its all-time high, it has gained about 84 percent from its lowest cycle in the past seven months. When interest rates are increased aggressively, it can impact people who borrow large amounts of money. The team is working on Ethereum 2.0 now. It makes sense that, according to cryptocurrency researcher Kevin Rooke, 94 out of the top 100 blockchain projects were launched on the Ethereum network.. The Ethereum network can be used for the creation and trading of non-fungible tokens, or NFTs. It has a market cap of more than $1 trillion compared to Ethereum's $400 billion, according to CoinGecko. On the other hand, there were issues such as the conflict between Russia and Ukraine and the uncertainty caused by the pandemic. They're both digital currencies that can be used to make transactions. Ive been where you are asking myself is Ethereum worth investing in. Bitcoin was initially meant to be a cryptocurrency -- emphasis on currency. Ethereum is different and is intended to be a platform for smart contracts.