With Ethereum nearing its fifth birthday, and most of the world still unaware of it, we take a look at whether it’s worth investing in Ethereum.
After launching in July 2015, and setting off the mega crypto bull run back in 2017, Ethereum has since been a bit of a flop when it comes to price.
So, with such a huge drop in value, wanting to know whether it’s worth investing in Ethereum or not is a valid question.
What is Ethereum (ETH)?
The Ethereum network, is an open-source, decentralized platform that allows developers to create smart contract applications (dApps).
It has its own economy and the currency that powers the network is Ether (ETH), which is needed for anyone wanting to send a transaction on the Ethereum network, and by developers wanting to build something on Ethereum.
When somebody mentions the idea of investing in Ethereum, it’s the ETH currency that they actually buy.
Ethereum has the second-largest market cap after Bitcoin and the second-highest trading volume of all cryptocurrencies.
And although Ethereum is relatively untested, it has many huge corporate partners that are using its technology. The Ethereum Enterprise Alliance is made up of many corporate partners who are already working with the Ethereum network.
Is It Worth Investing In Ethereum?
Ethereum’s market cap is much smaller than Bitcoin’s. Although, it is seen as a riskier investment than Bitcoin, but the potential upside is huge.
When Ethereum delivers its 2.0 upgrade, it will be able to scale to meet the demands of the world, basically, and Ethereum can become the platform for the web 3.0.
It must be said, that this upgrade is behind schedule and has been delayed many times. However, if anybody can pull arguably the most innovative upgrade in software history it’s Vitlaik Buterin and co.
Investing in Ethereum doesn’t come without risk, as it is still untested, but in my opinion, it’s worth a small investment at least. After all many huge corporations seem to believe in it.
Ethereum’s Price Has Been a Rollercoaster In Its 5 Years
Investing in Ethereum and even Bitcoin isn’t for the fainthearted.
Since launching in 2015, Ethereum’s price has gone way beyond the moon and back, a couple of times.
At launch Ethereum was around $0.09, and just two and a half years later it hit the heady heights of almost $1400.
In 2017, Ethereum led the crypto bull run, and crashed back down to earth again, but this is normal for new assets finding their value.
Many Ethereum hodlers have kept hold of their Ethereum through the wild price moves as they expect it to reach much higher than even the $1400 it almost reached in January 2018.
Is Ethereum a Safer Investment Than Bitcoin?
The short answer to this is no. While both cryptocurrencies are new and relatively untested, Bitcoin has established itself much more, and is the go to cryptocurrency for most people.
However, it is 6 years older than Ethereum, and when Ethereum releases its 2.0 update, Ethereum will become much more widespread than Bitcoin and probably all cryptocurrencies put together.
But as I said, it’s still untested, and there are no guarantees. While Bitcoin market cap is still really small for an asset, Ethereum’s is much, much smaller.
And, if Ethereum does pull off its major upgrade the upside could be unbelievable. However, if you’re interested in investing in either or both, it would be wise to invest a small amount in Ethereum.
But don’t worry, if Ethereum reaches its goal, a small amount could turn out to be a fantastic amount in a few years.
The Ethereum Eco-System
Ethereum was the ICO platform for dApps back in 2017, but many believe this use case is fading. And although the numbers are much less than 2017, the ICO model of fundraising is still working, and a bit more regulation could still see it become the future of venture.
If the ICO is a thing of the past, DeFi certainly isn’t and the money and tokens being created in DeFi is growing exponentially.
DeFi, also known as decentralized finance, is a new financial industry being created on platforms like Ethereum, and it recently passed $1 billion invested in the whole DeFi space.
This use case alone is enough to generate plenty of value for Ethereum, but it isn’t just DeFi that has many excited about Ethereum’s future.
Gaming is set to be revolutionised when Ethereum can scale. Games built into smart contracts allow developers opens so many more possibilities than what is possible on centralized platforms.
Already there are second life-like games like MegaCryptoPolis, in which gamers can invest in virtual land. Sure, this kind of thing is possible on centralized gaming, but what is revolutionary about Ethereum gaming is that it offers real ownership and scarcity without the possibility of duplication.
Ethereum Is Worth The Investment
Like all new technologies and assets, Ethereum’s price is volatile. It’s finding its true value and because the market cap is tiny, much of the price swings can be heart wrenching for some.
That said, many corporations, gaming companies, DeFi platforms are being built on Ethereum, and it is the most useful blockchain platform already.
Once Ethereum upgrades to 2.0, it will open the doors to so many possibilities, we don’t yet know what will be possible.
There can be no guarantees that Ethereum 2.0 will come off. Decentralized protocols are harder to scale, but Vitalik Buterin is quite simply a genius, and if anyone can deliver the web 3.0 it is him.
Author: Pablo Clarke