So, should you buy Ethereum? The first step is to identify a good exchange that supports ether. Before you invest in this cryptocurrency, make sure you've done your research and know what you're getting into. With Bitcoin, you can store value and pay for things, while with Ethereum, you can program smart contracts, tokenize assets, and more. 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/. Even Goldman Sachs recently released a report stating that due to an upcoming upgrade, Ethereum could overtake Bitcoin as an investment asset. Ethereum (ETH -0.47%) has been making waves in the crypto world, rivaling Bitcoin (BTC -0.29%) as one of the most popular cryptocurrencies. Why Is Ethereum Seeing A Surge In 2023? Claire Tsosie is an assigning editor for NerdWallet. On the one hand, the US Federal Reserve increased interest rates aggressively to address inflation. We believe everyone should be able to make financial decisions with confidence. Bitcoin was the first cryptocurrency that CME Group Inc. (CME) offered futures contracts on in late 2017, allowing investors to wager on prices at specific dates in the future. Sowhat happened was thatthe DAO raised $150M in ETH by spring 2016. It's also possible to invest in the Ethereum technology. The reason Ethereum gained such massive popularity and almost flipped places with Bitcoin in June 2017 is due to its ability to run smart contracts. A Guide For Beginners, What Is a Blockchain? About the author: Kurt Woock is a writer at NerdWallet. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Learn More. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Over two months ago I predicted that ETH would continue to outperform Bitcoin. Its primary purpose is to spread the use of its decentralized application program and to promote its smart contract abilities. As the past few weeks have proven, cryptocurrency is still an extremely volatile investment. The Motley Fool owns shares of and recommends Bitcoin and NVIDIA. If Ether is required for applications on the Ethereum blockchain, Ethereum's success could give Ether a competitive advantage over Bitcoin and other cryptocurrencies. Both Bitcoin and Ethereum have exhibited a positive correlation in the past years. The ETH to INR rate was around 345,480 at that time. This means there is no real floor in terms of Ethereum investing. According to Ethereum founder Vitalik Buterin, the update's primary focus is to address the platform's scalability challenges by fragmenting the ETH database, enabling the network to scale while preserving its decentralized nature. Also, new laws and regulations could pose a threat to Ethereum's future. Previously, she was a credit cards writer at NerdWallet for over five years. It still manages to feel "do-it-yourself" in an era . NerdWallet strives to keep its information accurate and up to date. First, that would make ether a good investment for those looking for others ways to make money with their crypto holdings beyond trading. Moreover, Ethereum transaction fees are at all-time high levels. Be sure to weigh the pros and cons as well as consider your own tolerance for risk. varies by type of transaction; other fees may apply. Ethereums capacity to serve as a platform for other technologies and services is one reason some investors are upbeat about its future. It has more media coverage and is the most established crypto asset. But is it time to buy? Bitcoin (BTC) was first traded back in 2009. Unlike small altcoins, it has less of a chance to crash and burn, but it still has the potential to moon and bring its investors astronomical profits. As with most investments, it's possible Ethereum's higher risk brings with it potential for higher rewards. Bitcoins supply will be limited to 21 million Bitcoin; its scarce -- much like gold. You can easily trade Ethereum for cash or. And while a. can give you additional protection against crashes and hacks, its still possible to lose your wallet, and with it, your assets. Before that he was a legislative editor for the Colorado General Assembly. after opening a Webull account, activating crypto trading, and completing one [1] crypto trade before 3/31/2023. This limits the supply of Bitcoin and increasing its value. As "gas" prices or transaction fees continue to increase and adoption rates skyrocket, competitors are pivoting to try and quickly capture the portion of the market that is . In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. While crypto prices have plummeted over the past few weeks, that doesn't necessarily mean it's a bad time to buy. In the past three months, ETH has surged by 36 percent. They are not intended to provide investment advice. But is Ethereum a good investment 2021 for individuals? This smart contract tracking ability is one of the unique aspects that sets Ethereum apart. So should you buy Ethereum or Bitcoin? 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. Well,if youre simply looking to invest in cryptocurrency and you can only pick one, perhaps Bitcoin would hold up better. Ethereum is currently priced at roughly $380 after a fall from the current 2020 high of over $490. If youre in the game to try and make some money, then youre looking for the one that will make you money. HODLing cryptospeak for holding assets for an extended period of time can contribute to a surge in the price to a certain extent through increased confidence in the cryptocurrency. Well, if: Then buying Ethereum in 2023 might be aworthy investment for you. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. As experts believe, the price will keep growing . After that -- no more! Bitcoin was initially meant to be a cryptocurrency -- emphasis on currency. Ethereum is different and is intended to be a platform for smart contracts. While Ethereum-based transactions tend to be far faster than Bitcoin transactions, there's a steep cost that comes with that convenience, known as gas fees. Here are some of the best picks for 2023. Buy Ethereum instead of Bitcoin, if you believe this outperformance will continue. Over the years, weve experienced countless issues. Cryptocurrencies are still a new kind of asset, and they have been highly volatile. Now the price is better reflecting the value and use of Ethereum. Disclaimer: NerdWallet strives to keep its information accurate and up to date. The new Ethereum blockchain reversed the hack and refunded everyone their money. supply of 500,000,000 TRAC coins. This uses a proof-of-stake system to validate blockchain transactions. It should only be considered if you have a high risk tolerance, are in a strong financial position and can afford to lose whatever you invest in it. In other words, ETH has outperformed by almost 3 times, just since the beginning of the year. But it's not just investors enjoying more access to BTC. Ethereum has greater utility Bit. Users can also create decentralized apps that facilitate gaming, gambling and even the trading of other digital currencies. Artificial Intelligence Stocks: The 10 Best AI Companies. Of course, there is no guarantee that it will. Subscribe to our daily newsletter to get investing advice, rankings and stock market news. While it has somewhat recovered since then, it can be tough to stomach downturns like these. Market Realist is a registered trademark. Unlike in the past, the more Ethereum is adopted, the more Ether is burned in the form of fees. But the code wasnt secure. No major companies have publicly bought Ether to maximize returns on cash. Bitcoin, however, is up by $26,477 from $29,374 to $55,851, as of April 28. Everyday consumers can earn Bitcoin via services like Lolli, the first Bitcoin rewards application allowing people to earn BTC back when shopping online. 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. But Ethereum(ETH -0.44%)has had an incredible year. Invest better with The Motley Fool. There are only ever going to be 21 million Bitcoin; that known limit to global supply is a core reason why some investors consider the cryptocurrency akin to digital gold. Ltd. Crypto products and NFTs are unregulated and can be highly risky. Invest better with The Motley Fool. Investing in cryptocurrency can come with hefty taxes, which could limit the number of people willing to invest. It is fueled mainly by the growing decentralized trend in finance. These gas fees, which compensate participants for validating transactions, can be outrageous, especially for smaller transactions. But I was still wondering whether or not I should invest in Ethereum. Kurt Woock started writing for NerdWallet in 2021. The current CoinMarketCap ranking is #238, with a live market cap of $133,535,311. Ether surging to a new all-time high has caught many cryptocurrency investors' attention. 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. Before deciding which cryptocurrency to buy, you should understand the different motivations behind Bitcoin and Ether, the native cryptocurrency of the Ethereum blockchain. It's been a wild ride for Bitcoin over the last 14 years. Ethereum also does not have a supply cap like Bitcoin, which is limited to just 21 million Bitcoin. Ethereums whitepaper, which outlined its technical details, was released in 2013, and the first Ether sale took place in 2014. If Ethereum were to disappear overnight, a much larger swath of the crypto world would also vanish. Both have the potential to perform well over time as the world continues its shift to digital and cryptocurrency's acceptance grows. It's also experienced explosive growth, with its price increasing by more than 1,000% over the past 12 months. When Ethereum becomes more energy efficient, it could acquire a competitive advantage in the crypto industry and a leg up over Bitcoin. ALSO READ: Bitcoin Is Seeing A Resurgence This Year After A Challenging 2022: Heres Why. Buying both Ethereum and Bitcoin is asolid diversification. Copyright For many, investing in Ethereum has proven to be a great . You believe we need sustainable energy production and management, Buy Ether only from reputable exchanges (check. Copyright 2023 InvestorPlace Media, LLC. I would simply say -- diversify: Buy both. For example, it may be that ETHs price rise will slow down or deaccelerate as its price becomes more expensive. This could actually be a good thing for investors, however, because a smaller supply of Ether could make it more valuable and drive up its price. What Is Cryptocurrency? In October, Rostin Behnam, the chair of the Commodity Futures Trading Commission, said that Ethereum is a commodity and should fall under CFTC regulation. Best Parent Student Loans: Parent PLUS and Private. Bitcoin Is Seeing A Resurgence This Year After A Challenging 2022: Heres Why, How Crypto Diversification Can Protect Your Portfolio Against Volatility. While we're here, I've compiled my favorite platforms to buy ETH, and I recommend you use one of them: *eToro Disclaimer: Your capital is at risk, The World Economic Forum (WEF), in their surveys and research, projected that up to 10% of the global Gross Domestic Product (GDP) will be stored and transacted with the help of blockchain technology by 202527.. So why does this matter if the price is still falling? Fundstrat Global Advisors analyst David Grider ether price prediction is that the altcoin could reach $10,500 in the long term. In addition, FTX, FTX.US and BlockFi filed for bankruptcy in 2022. In addition, filed for bankruptcy in 2022. Making the world smarter, happier, and richer. 2020 created an entirely new year for Ethereum. A self-directed IRA can make sense in some situations, but investors must also understand the drawbacks. When it comes to cryptocurrency, Bitcoin (BTC -0.29%) is the big name in town. Bargain hunters looking to buy and hold should consider these weed stocks. Ethereum Is Crashing: Is Now the Time to Invest? That said, the 2022 Ethereum "Merge" is expected to dramatically slow the creation of new tokens, and possibly even make Ether deflationary, with more of it being burned than created each year. Advertisement Advertisement While it continues to attract investors deterred. But Ethereum 2.0 is in the works. Can Cryptocurrency Be Part of a Diversified Long-Term Investment Portfolio? 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Heres a quick rundown of some of the biggest considerations regarding the investment outlook for each cryptocurrency. Not everyone agreed with the proposed changes, so the Ethereum blockchain split into Ethereum and Ethereum Classic. Making the world smarter, happier, and richer. All Rights Reserved. With a. Ethereums competitors, like EOS, claim their blockchain can perform leagues better than Ethereum. But if youre keen on sticking to one or the other then lets examine which one is better for you. As the de facto cryptocurrency leader, no other coin even comes close to Bitcoin. Technically, the supply of ETH is unconstrained, and there are currently more than 122 million in circulation. Ethereum has been particularly popular with decentralized finance applications. As of Jan. 22, the dollar value of all outstanding Bitcoin was around $440 billion. Analytics company Microstrategy Inc. (MSTR) is the biggest corporate BTC holder. Source: Crypto Fees. It made many people immediately jumped on the wagon to enjoy the deserving fruits of digital currency. Since the hard fork of August 2021, Ethereum has experienced a massive change in its tokenomics. There may be no regulatory recourse for any loss from such transactions. Our team is comprised of cryptocurrency investors from all over the globe, and our members come from traditional industries such as finance and engineering to more modern professions like full stack developers and data scientists. CryptoManiaks is an authoritative crypto education platform dedicated to newcomers and cryptocurrency beginners. One of the criticisms of cryptocurrency in general is that it's incredibly energy intensive. Pre-qualified offers are not binding. Ultimately, the debate between Bitcoin and Ethereum as investments comes down to an investor's risk profile. It has grown 6000% in 2018 and is the fastest growing skill on freelancing websites. Dont mistake Ethereums name recognition for stability or growth guarantees. Recently, ether hit a new all-time high close to $1,500. 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. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, 2 Stocks That Are About to Make Their Shareholders Richer, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Is It A Good Time To Invest? *Average returns of all recommendations since inception. Invest only the amount you are comfortable losing. Risky investments such as cryptocurrency can affect an investors total portfolio. It has a circulating supply of 365,481,590 TRAC coins and a max. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Crypto tokens are "mined" through a series of complicated computer processes. I postulated that if Ethereum rises three times as fast as Bitcoin, it would take eight years or less for Ethereum to catch up to the same price as Bitcoin. Here is a list of our partners. We're in unchartered territory with crypto, and it's anyone's guess whether it will change the world or crash and burn. If EOS and other so-called Ethereum killers can become faster, better, and stronger than Ethereum -- ETH could be in trouble. Instead, he will work on fixing the flaws and improving Ethereum -- which often leads not only to increased price, but also to a sustained higher price. While there are currently plans in place to increase scalability and reduce gas fees, as of 2023 the costs can still be prohibitive. Right now, Bitcoin is the most popular and most widely accepted cryptocurrency. Despite its flexibility and wide range of applications, there are still risks involved in investing in Ethereum and Ether. Under this setu. The last Bitcoin will be mined in the year 2140. With a smart contract, you dont need a third party to perform credible transactions. Although they both have a proof-of-work system to reward validators of blockchains, Ethereums focus is different. One of the biggest advantages of the Ethereum blockchain is its flexibility. Would you be able to sleep at night if your investment fell by 20%? Ethereums smart contracts can secure ownership of these items. Ether and Bitcoin share many similarities. Interestingly, around the time of Ethereum's all-time high of around $4,890 in November 2021, the cryptocurrency's notoriously high transaction price fell by approximately 50%. Considering Ethereum is one of the higher-priced cryptocurrencies, right now may be a good time to buy when it's "on sale.". The two leading cryptocurrencies both suffered a severe sell-off in 2022. Censorship is a real issue in the modern world. A new era of computer programming, digital ownership, and other innovations are being introduced thanks to the smart contract capabilities of Ethereum. Learn More. I heard from many reputable sources that lots of innovations and cryptocurrencies were built on Ethereum. The implication here is pretty clear. Aragon DAO founder Luis Cuende predicts a $2,500$7,500 long-term price for Ethereum cryptocurrency. Prices steadily rose albeit with some volatility over the years and in November 2021 BTC hit an all-time high of $68,990. Also, as the Ethereum network undergoes changes, some of the Ether coins could be destroyed in the process. For example, year-to-date ETH is up by $1,993 from $737 where it was on Dec. 31. All rights reserved. Keep in mind what they are saying: each country worldwide will use blockchain technology up to 10% of its GDP. If Ethereum were to disappear overnight, a much larger swath of the crypto world would also vanish. Ether might see broader adoption after the network upgrade is complete, which should boost its price. By contrast, BTC is down $1,059 from $55,750 to $54,851, or about -2%. Ethereum will catch up to Bitcoin sometime within the next six years, if past performance continues. What about 50%? Ether is a type of cryptocurrency, similar to Bitcoin. For the second time this year, Ethereum's price is soaring. This might have attracted new buyers who saw the existing holders as a signal of the asset's value. For any cryptocurrency to survive, it needs to have some type of real-world utility. Which is the better buy now? If that's the case, prices could plummet when the bubble bursts. The growth of the Ethereum development community is impressive. But before you invest, it's important to understand the advantages and disadvantages. Buy Ethereum Instead. Ethereum Classic kept the old blockchain -- along with the hacked funds. Here at CryptoManiaks, we are staffed with people who have all worked, studied, and generally kept up to date on cryptocurrencies. With S&P 500 companies alone sitting on trillions of dollars in cash and short-term investments, the growing acceptance of holding Bitcoin on balance sheets has potential to be a massive catalyst for BTC.

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