Whether you choose to invest or not, be sure you're making this decision carefully. What are the ether price predictions for 2021 and beyond? Definition and Examples of Blockchain Technology, What is Crypto Staking? The first step is to identify a good exchange that supports ether. 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. Understand these guidelines for picking stocks before investing. 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/. So lets peak at a few reasons you should consider not to buy Ethereum. Buying both Ethereum and Bitcoin is asolid diversification. Here's what the experts suggest. With Bitcoin's surge in early 2023, the "crypto winter" began to thaw. Offers may be subject to change without notice. But as weve made mistakes buying and selling Ethereum, weve also learned. If BTC surges in value, ETH also tends to follow suit. Also, new laws and regulations could pose a threat to Ethereum's future. Sign up below to get this incredible offer! But Ethereum 2.0 is in the works. In other words, I now believe that Ethereums price rise acceleration will shorten the period when a parity between ETH and BTC will occur. So, generally, when BTC's value increases, it can increase investor confidence and investment in the broader crypto market, including Ethereum. 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. Ether futures trading is already available on other platforms and they have been progressing well. Historically, this has resulted in periods of frustratingly high prices, exceeding $190 at one point. Ethereum, The 24-hour Surge 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. While technically, this is not an interest rate or a company dividend, the chance to earn passive income is a plus for Ethereum owners who plan to have it long term. Out of the many cryptocurrencies that have made huge waves in the crypto world recently. Copyright 2023 Market Realist. Also, the network can only process about a dozen transactions per second, regardless of demand. 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. It should only be considered if you have a . Your all-in guide to help you make the best decision. Risky investments such as cryptocurrency can affect an investors total portfolio. The Ethereum network is at the forefront of the still-nascent decentralized finance, or DeFi, area. I heard from many reputable sources that lots of innovations and cryptocurrencies were built on Ethereum. Making the world smarter, happier, and richer. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Ethereums 2014 white paper states that it moves far beyond just currency and will be a foundational layer for a very large number of both financial and non-financial protocols in the years to come. Among other things, this means developers can build applications and anyone can write a smart contract, which is code that is stored and executed on Ethereums network. Both Bitcoin and Ethereum use blockchain distributed ledger technology. But if youre keen on sticking to one or the other then lets examine which one is better for you. With Bitcoin, you can store value and pay for things, while with Ethereum, you can program smart contracts, tokenize assets, and more. In fact, over the course of 2018, Ethereum's price plummeted by nearly 94%. Limited supply. For one, you're almost guaranteed to experience significant volatility -- especially if you invest directly in Ether. Ethereum Market Cap Today's Change (-2.95%) -$48.83 Current Price $1,604.46 Price as of February 25, 2023, 2:55 a.m. There are plans to indirectly lower prices through higher transaction throughput, but that will require implementing unproven technology that isnt yet available. Also, as the Ethereum network undergoes changes, some of the Ether coins could be destroyed in the process. Ethereum is the blockchain technology behind Ether. Cryptocurrencies like Ethereum are unlike any other kind of investment. But I was still wondering whether or not I should invest in Ethereum. Thinking of Buying Solana? In October, Rostin Behnam, the chair of the Commodity Futures Trading Commission, said that Ethereum is a commodity and should fall under CFTC regulation. Our opinions are our own. Cryptocurrency is a risky investment in general because it's highly speculative at this point. You can earn additional Ethereum by staking. Crypto isnt something you can physically own, like real estate. If EOS and other so-called Ethereum killers can become faster, better, and stronger than Ethereum -- ETH could be in trouble. So why does this matter if the price is still falling? What are the differences between Bitcoin and Ethereum. Keep in mind what they are saying: each country worldwide will use blockchain technology up to 10% of its GDP. Ether surging to a new all-time high has caught many cryptocurrency investors' attention. Heres a quick rundown of some of the biggest considerations regarding the investment outlook for each cryptocurrency. If you're on the fence about investing, there are two reasons to consider buying now -- and one reason to avoid it. Right now, Bitcoin is the most popular and most widely accepted cryptocurrency. As the years progress, Ethereums technology will grow. Since the beginning of the year, Ethereum's price has soared by 435%. Ethereum Is a Much Better Long-Term Crypto Investment Than Bitcoin Ethereum will catch up to Bitcoin sometime within the next six years, if past performance continues By Mark R. Hake, CFA Apr. Infact by the end of 2022, Ethereum will transition from a proof-of-work (PoW) to a proof-of-stake (PoS) network, which could reduce its energy consumption by over 99% from current levels. Unlike stocks, owning crypto doesnt give you ownership of a company. While Bitcoin has a finite supply, Ethereum possesses vast utility and is poised to undergo numerous upgrades, resulting in exceptional scalability and applications soon. Yes, investing in Ethereum is worth considering. The Ethereum network, on the other hand, brings virtually limitless possibilities. The ETH to INR rate was around 345,480 at that time. However, this is not the only factor that has influenced Ethereum's value, but it could be one of the factors. *Average returns of all recommendations since inception. And this again, the upcoming update could be one of the reasons why investors and traders might be holding it. Many large corporations and financial institutions, such as Visa, announced a proposal last December to enable Ethereum holders to set up programmable payments from their own self-custodial wallets. A $1,000 ethereum purchase on Jan. 1 at a price of $730.97 per coin would be. Ethereum may have been the first blockchain to run smart contracts -- but now it is not the only one. Our partners cannot pay us to guarantee favorable reviews of their products or services. What Is the Best EV Stock to Buy Now? In addition, filed for bankruptcy in 2022. That means its up by $2,531.53 or 10 times over the past year. It has grown 6000% in 2018 and is the fastest growing skill on freelancing websites. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. While Ether futures would eventually launch on CME in February 2021, Bitcoin's early dominance allowed it to gain institutional acceptance more quickly; there still isn't an ETF that tracks the ETH price, even through futures contracts. Some of your options include: Ethereum is a widely used technology that has a variety of applications. These are great options for a starter portfolio. This smart contract tracking ability is one of the unique aspects that sets Ethereum apart. Learn More. 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. Simply put, Ethereum is a smart computer. As a result, risky investments should make up just one part of your asset allocation. In 2022, many macroeconomic factors affected the global economy. Ether might see broader adoption after the network upgrade is complete, which should boost its price. But strap on your . Is the original crypto making another comeback? However, several reasons are attributed to the recent surge above the $1,600 and $1,700 levels. The Ethereum network can be used for the creation and trading of non-fungible tokens, or NFTs. Is ether a good investment in 2021? Ethereum price prediction in 2021 and beyond Ether surging to a new all-time high has caught many cryptocurrency investors' attention. These gas fees, which compensate participants for validating transactions, can be outrageous, especially for smaller transactions. Cryptocurrencies generally are highly volatile. after opening a Webull account, activating crypto trading, and completing one [1] crypto trade before 3/31/2023. So get on Coinbase or another site recommended in this article and buy yourself 1 Eth today -- and welcome to the wide world of blockchain. As of Jan. 22, the dollar value of all outstanding Bitcoin was around $440 billion. 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. These five stocks are selling at attractive valuations today. CME Group, the worlds largest derivatives trading platform, plans to introduce ether futures trading in 2021. More than 10,000 vendors offer rewards via Lolli, including companies like Nike Inc. (NKE), Walmart Inc. (WMT), Best Buy Co. Inc. (BBY), McDonald's Inc. (MCD) and Dunkin' Donuts. In other words, it has applications outside the cryptocurrency world. But proving it is another thing. NerdWallet's ratings are determined by our editorial team. "Ethereum can host a variety of different assets, not just its own native assets. This influences which products we write about and where and how the product appears on a page. This means the supply is capped and the value will not be diluted or inflated by adding more Bitcoins. In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. It is unfair to only look at one side. Cryptocurrencies are still a new kind of asset, and they have been highly volatile. (Getty Images). Even after a severe crypto market pullback in 2022, Ethereum was recently trading for around $1,628, which means it has advanced 575-fold in less than . Ethereums capacity to serve as a platform for other technologies and services is one reason some investors are upbeat about its future. However, this does not influence our evaluations. The DeFi explosion continued, with more than $100 million in total value being locked up. The great thing about institutional investors is that they tend to have a long horizon. Like any good punk or hip hop show, this year's Colorado event for coders will feature events that will "scare away normies," CoinDesk Chief Insights Columnist David Z. Morris writes. When it comes to cryptocurrency, Bitcoin (BTC -0.29%) is the big name in town. Time will tell how the circulating supply of ETH progresses but, unlike Bitcoin, there is no official cap on supply. Pre-qualified offers are not binding. Disclaimer: NerdWallet strives to keep its information accurate and up to date. This uses a proof-of-stake system to validate blockchain transactions. Just because the cryptocurrency is more affordable doesn't necessarily mean it's a good investment, however. So how do we make money? Since this info will benefit everyone who reads our articles, we went ahead and made a list of the best platforms to buy Ethereum. 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%. In September, Securities and Exchange Commission Chair Gary Gensler suggested that cryptocurrencies such as Ethereum could be considered a security, which would make them subject to SEC regulations. In fact, Tesla CEO Elon Musk recently announced that the company will no longer accept Bitcoin as a form of payment because of its environmental impact. The current CoinMarketCap ranking is #238, with a live market cap of $133,535,311. 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