Should I invest in Ethereum?
If you’re thinking about investing in Ethereum, you’ll want to be sure you’re doing the right thing; after all, there are so many different cryptos out there it can be hard to pick out the best ones.
You can keep a regular check on the outlook for cryptocurrency prices at InfoChoice.
What is Ethereum?
The story behind Ethereum (so far):
Ethereum was first proposed as a development of Bitcoin, but BTC developers nixed the idea so programmer Vitalik Buterin went it alone with his own team instead.
The idea was to give programmers a way to develop their own applications to use on the blockchain and it’s this facility that makes it popular with investors and the crypto industry in general as it can seed new projects.
ETH was launched in August 2014 and the team has made quite a few changes and improvements to the token since that date.
Ethereum has been a rising ‘investment’ – so far
Over the last 12 months the price of ETH has almost doubled to AUD$366, from around $170.
Buying ETH has worked out pretty well for lots of Australians so far. In January 2017, one ETH was worth around $14, whereas in January 2020 one ETH was worth $230, and now $366.
The currency had a huge spike in the middle of 2018, reaching a high of $1,752, before falling to around $115 by the end of that year.
Ethereum and Ethereum Classic
You might wonder
what the difference is here. Classic is the original ETH, but after a huge
hack, the Ethereum community decided to make a fork – a change in the protocol
– so that the thieves couldn’t use their ill–gotten gains. Ethereum is actually
the forked–off currency.
Is ETH a good investment?
The crypto industry is still very young, so as it expands and develops, ETH should grow alongside it.
Ethereum is one of only a few cryptos used by initial coin offerings (ICOs), so it can act as a launch pad for new tokens and this makes ETH very useful to the community and industry.
As more people catch onto crypto and start using it, ETH could grow quite a bit, especially as it’s also one of the most popular currencies for payments and purchases.
Blockchain and its associated cryptos are helping to drive forward open financial systems by making them more secure, streamlined and accessible to everyone, not just banks.
What is an open financial system?
An open financial
system, or open banking, is when banks and their customers agree to share their
data with a third–party service provider and this provider can speed up
transactions, help to advise consumers and make the system much more secure.
The downside (negatives) of Ethereum
There may well be better cryptos to invest in, so always be on the lookout.
Long–term investing means that while you might see gains over time, you don’t get the same opportunities to buy low and sell high that a volatile market could offer you.
Another coin could come along at any moment to disrupt the industry, or at least knock ETH and BTC off their pedestals.
The government could bring in new regulations which could affect the price of ETH, so keep your eyes on crypto news and be ready to move if this looks likely.
Making short term investments in ETH
The short term outlook for Ethereum seems positive but short–term investing means that you’re buying and selling in synch with the falls and rises of Ethereum.
As cryptos are prone to volatility, you’ll get more chances to buy low and sell high, but this takes a lot of watching so that you’re ready to make the moves. You need to keep up with the outlook and research and spend time tracking the market.
The 2020 Outlook for Ethereum
Lots of ICOs are planning to release their tokens on the ETH network in 2020, so this could see the currency rise. At the moment, ETH is at a fraction of its 2018 record high.
Looking at Ethereum vs Bitcoin, BTC’s finite supply of coins may push it higher in 2020 while both BTC and ETH are set to gain a lot of market traction as more people and institutions adopt cryptocurrency tech and systems.
Get the latest updates on crypto prices and the outlook for cryptocurrencies at InfoChoice.
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