Released in 2016, Ethereum is a new technology. And, it may be advantageous for those ready to engage and explore this new technology. So, this 2022, you might be thinking if Ethereum stock is worth buying. In this article, we made a list of some reasons why ETH is a good investment.
Tokenization
According to World Economic Forum (WEF), the world will use blockchain technology of about 10% of their Gross Domestic Product or GDP for storing and transactions by 2025 to 2027. Therefore, it means that there are many future opportunities for Ethereum.
Diversification
Several crypto options are available out in the market. But is ETH a better option? For example, Bitcoin is a famous and excellent investment. Investing in Ethereum and Bitcoin is a perfect way to diversify your assets. If you want to broaden your cryptocurrency portfolio beyond Bitcoin, Ethereum is a fantastic investment.
Let’s take a look at the distinction between Ethereum and Bitcoin. They have different technology and purpose.
Ethereum was designed to be a platform for smart contracts. You can run smart contracts, tokenize assets, and more with Ethereum. On the other hand, Bitcoin was designed to be a cryptocurrency, with the focus on the word ‘currency.’ You can use Bitcoin as a payment and store value in it.
Ethereum is likewise a good payment system, but it lacks Bitcoin’s brand recognition and immutability. Moreover, Ethereum is uncapped, while Bitcoin is rare since it is limited to 21 million coins.
World Computer
Because it can operate smart contracts, Ethereum has grown in popularity. It nearly surpassed Bitcoin in June 2017. Various assets can be secured using Ethereum’s smart contracts, such as houses, high-end automobiles, and artwork.
People worldwide, particularly foreign investors, will no longer go through the bureaucracy of a foreign country’s system to own a property or artwork there. Instead, they can make use of an Ethereum-based smart contract. Plus, they can also pay using Ethereum.
Ethereum demonstrates new and greater degrees of interconnectivity for businesses and private individuals globally. So, it gives Ethereum another ideal reason to be worth investing in.
Innovation
On Ethereum, interesting new projects are developing, including crypto-collectibles, electric vehicle charging stations, microgrids, house mortgages, and healthcare data.
So, what are some additional compelling reasons to put money into Ethereum? First, it can contribute to energy generation and management that is sustainable. You will be one step ahead of the competition.
Besides, though in 2017, 84% of Ethereum’s value was lost due to the so-called ‘crypto bubble popped,’ it did not end. Ethereum, similar to the internet, has grown in power and momentum since the ‘internet bubble of the 1990s.
Uncensorable Apps
Because Ethereum is decentralized, it can assist in keeping the world informed. All the stored information on the blockchain will stay uncensorable and available for as long as Ethereum exists, which may be a very long period. It cannot be closed down by a government or organization.
In our modern era, censorship is a real problem. For instance, social media companies, such as Facebook, Youtube, Twitter, and Instagram, have the right to modify, delete or hide information. Thus, one of the many reasons Ethereum is significant is that it allows users to make educated judgments with uncensored content.
ETH Price Prediction In 2022
Ethereum gained traction in 2021. It is also worth noting how its price soared once the ETH 2.0 version has been released. This upgrading program anticipates to expand in 2022, according to experts. It is one of the primary causes driving up the price of ETH to $6,000 by the end of the year.
How To Buy Ethereum?
Now that you’ve learned the reasons why Ethereum is a good investment, then you might wonder how to do it. If you would like to buy Ethereum directly, you may do it through a crypto exchange, a stockbroker, or a payment app.
The following are three types of platforms that you may use to purchase Ethereum:
1. Cryptocurrency Exchanges – Users can buy, sell, and trade cryptocurrencies on these platforms. Coinbase and Gemini are two famous cryptocurrency exchanges. Ethereum is among the most valuable cryptocurrencies in market capitalization. Thus, it can be found on practically all crypto exchanges.
2. Stock Brokers – Many stockbrokers, including Robinhood, have begun to offer a limited number of cryptocurrencies.
3. Payment Applications – PayPal and Venmo are examples of payment apps that allow you to purchase and sell cryptocurrency, including Ethereum.
Final Thoughts
There are many changes and developments that influence the future of finance and other industries. Blockchain technology is proving that it will play a key part in people’s lives. Therefore, Ethereum is potentially beneficial in terms of investment.
Is Ethereum a good investment this year? What do you think? Share your thoughts or suggestions in the comment section below.
