We have all heard of Bitcoin, the strongest cryptocurrency on the market. However, not much is being said about Ethereum.
Ethereum or ETH is a blockchain-based platform that can be used to buy and sell value globally. It is wise to consider investing in Ethereum because the future of this digital coin is brighter than Bitcoin’s. The following are some reasons why you should invest in cryptocurrencies and choose Ethereum over others.
The ETH 2.0 upgrade
Ethereum is going to have the ETH 2.0 upgrade. This means it will turn from a proof of work into a proof of stake coin. Investing in a proof of stake cryptocurrency means that you first need to put down a minimum amount of money for the transaction to be validated. Someone who puts more money down will have more power to do mining work. Proof of stake mining will not rely on heavy computer work which means, less energy is being used. Why is this important?
Consider what happened when cities in Iran suffered power shortages in 2021 due heavy bitcoin mining work. The country’s president banned cryptocurrency mining for four months so that the affected cities could recover.
However, ETH has not acquired the ‘proof of stake’ status. If it does acquire it this year, its price will go up significantly.
Ethereum runs on blockchain technology
Blockchain is a powerful technology in which each cryptocurrency miner adds a block to the chain of cryptocurrency data every time they make a transaction. This technology is very attractive to investors and traders. We all know that the more investors compete for a digital coin, the more attractive (and valuable) the coin becomes.
Ethereum supports Defi which is the use of services and the acquisition of financial loans without the involvement of financial institutions. For example, if you want to apply for a loan, you will need to use decentralized apps (dApps) to do so. This makes things easier for you since you won’t need to go to a bank for a loan and only rely on investors.
Many Defi services run on Ethereum’s technology. For example, three of the most popular Defi projects are Compound, Marker DAO and Bancor. These projects make Ethereum superior to Bitcoin.
ETH will support business owners across the globe
Ethereum will facilitate a connection between entrepreneurs around the world since all Ethereum owners can use Defi to grow their businesses.
Using Ethereum to make business transactions is also a good idea because, as we will see below, ETH’s value will skyrocket in the next couple of years. This means, as a business owner you will profit from investing in the ETH cryptocurrency.
Predictions for Ethereum are good
Financial analysts and investors see good things in Ethereum’s future. They believe that by 2025, Ethereum will reach the value of $11.000 and eclipse the popularity of Binance Coin and Solana.
The ETH 2.0 version is also likely to attract more enthusiastic investors who are going to prioritise Ethereum due to its environmental impact.
All in all, Ethereum or ETH is the strongest cryptocurrency after Bitcoin. There are valid reasons to invest in it but consider taking the long-term investing approach. The predictions for ETH are good so, who knows how much money you’ll earn in three years when cryptocurrency investing will become even more of a popular trend?
Marlena is a freelance writer and technology enthusiast with an interest in business, health, and cryptocurrencies. She has written for Thrive Global, Life Hack and other publications. You can contact her on Twitter at @MarlenaEeva.