If BTC surges in value, ETH also tends to follow suit. There will be investors taking profit from the recent bitcoin boom to put in altcoins like ether, which should allow the Ethereum cryptocurrency to keep rising. Thus, in 2023the safety of buying, selling, and storing Ethereum falls on the user. This will give you a more balanced perspective. But it's not just investors enjoying more access to BTC. Foreign investors and people around the world wont need to run through the bureaucracy of foreign nations system in order to own a home or artwork in another country. (Getty Images). The last time AAPL traded at one five-hundred-seventy-fifth of its current price was in 2003, some 20 years ago. Ethereum Is Crashing: Is Now the Time to Invest? varies by type of transaction; other fees may apply. The rate of new BTC creation also gets smaller over time through a process known as Bitcoin halving, which cuts the pace of bitcoin creation in half every 210,000 transactions. Making the world smarter, happier, and richer. And because these smart contracts live on blockchain technology, they are trackable and irreversible. Last year, the Fed cranked up interest rates eight times since March 2022, including four consecutive 0.75 percent base points increases to tackle inflation. Previously, it launched bitcoin futures trading. Again, Ethereum has outperformed by nearly twice ten times vs. six times gains in the last year. In 2021, ethereum gained more than 400% in value, handily outperforming bitcoin's modest 62% rise (as of Dec. 31). Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. This story was published at an earlier date and has been updated with new information. Which Is Safer: Stocks or Cryptocurrency? Uncertainty, even about government regulation, leads to a murkier investment environment. That mining process requires a significant amount of energy, and crypto critics have raised concerns over its impact on the environment. Other cryptocurrencies are issued on it, NFTs trade freely on the platform, and the entire field of decentralized finance was ushered in with Ethereum and its versatile ability to create smart contracts. Back in time, I heard of Ethereum almost as much as I heard of Bitcoin. And the starting point at that time was $34,624. Particularly notable is that ethers rally came amid a retreat in bitcoin's price. But proving it is another thing. One thing must be mentioned about this popular crypto is the Ethereum Merge (Ethereum 2.0). All rights reserved. This influences which products we write about and where and how the product appears on a page. Although they both have a proof-of-work system to reward validators of blockchains, Ethereums focus is different. I would simply say -- diversify: Buy both. Whether you choose to invest or not, be sure you're making this decision carefully. Its set to be released in phases, starting from December 2019. Ethereums technology and purpose are different than Bitcoin. And it's still the choice of more big corporates. ALSO READ: How Crypto Diversification Can Protect Your Portfolio Against Volatility. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. What Is the Best EV Stock to Buy Now? OriginTrail is down 0.89% in the last 24 hours. Master limited partnerships offer reliable and robust payouts for investors. In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. But is Ethereum a good investment 2021 for individuals? The Motley Fool has a disclosure policy. 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. Previously, she was a credit cards writer at NerdWallet for over five years. The Ethereum network upgrade will enable ether staking, which could yield up to 15 percent for investors. Also, Ethereum 2.0 plans to make the blockchain faster and more scalable so it can be used for even more applications. Technically speaking, Ethereum is the name of the blockchain technology, while Ether is the token hosted on that blockchain. A new era of computer programming, digital ownership, and other innovations are being introduced thanks to the smart contract capabilities of Ethereum. Theres a group of investors that follow trends. quotes delayed at least 15 minutes, all others at least 20 minutes. The Motley Fool owns shares of and recommends Bitcoin and NVIDIA. Over the last 12 months, it's increased by more than 1,700%. When it comes to cryptocurrency, Bitcoin (BTC -0.29%) is the big name in town. Aragon DAO founder Luis Cuende predicts a $2,500$7,500 long-term price for Ethereum cryptocurrency. While it's mostly known for hosting Ether, it's also used for nun-fungible tokens (NFTs), decentralized finance, and enterprise blockchain solutions. 7 Penny Stocks Poised for Explosive Growth in 2023, Ethereum Is a Much Better Long-Term Crypto Investment Than Bitcoin. Besides being an incredibly innovative technology, Ethereum is also a great asset for investment. Unlike in the past, the more Ethereum is adopted, the more Ether is burned in the form of fees. Kurt Woock started writing for NerdWallet in 2021. Over the years, weve experienced countless issues. Like Bitcoin, you can invest directly in Ether by purchasing coins. It's no surprise that investors are interested in cryptocurrencies. If Ethereum were to disappear overnight, a much larger swath of the crypto world would also vanish. The cost to use Ethereums network is based on supply and demand if the network is busy, youll pay more. Of course, if Vitalik manages to release these updates on time, the value and price of Ethereum will increase significantly. With a. Ethereum classic reached $76.94 on 15 August 2021, its highest level since the fall from May's highs while, on 6 September, it reached a periodic high of $77.07. Is It A Good Time To Invest? It still manages to feel "do-it-yourself" in an era . Yes, investing in Ethereum is worth considering. But the decentralized Ethereum network also makes it possible to create and run applications, smart contracts and other transactions on . An investment in ethereum at the beginning of the year would have seen strong growth over the ensuing months. Would you be able to sleep at night if your investment fell by 20%? A self-directed IRA can make sense in some situations, but investors must also understand the drawbacks. The total market capitalization for all cryptocurrencies was about $1 trillion, and the second-most valuable digital currency was Ethereum, with a market value in the neighborhood of $199.2 billion. Ethereum Classic kept the old blockchain -- along with the hacked funds. Yes - in my personal opinion, in 2021, it is still advisable to invest in Ethereum. These five stocks are selling at attractive valuations today. 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. If Ethereum were to disappear overnight, a much larger swath of the crypto world would also vanish. Moreover, Ethereum is the blockchain most widely used in non-fungible tokens (NFTs). 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. Ether is a type of cryptocurrency, similar to Bitcoin. However, several reasons are attributed to the recent surge above the $1,600 and $1,700 levels. Following the Ethereum merge, blocks of transactions would be verified using a consensus mechanism called proof-of-stake. It came out in 2016. Thinking of Buying Solana? So, what are some more reasons to invest in Ethereum? Investing in assets is always a wise decision, but it's crucial to remember that investing is a long-term process focusing less on immediate or short-term profits. 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. If in the long term the price of Shiba Inu is hiked to $1 you can become a millionaire. These gas fees, which compensate participants for validating transactions, can be outrageous, especially for smaller transactions. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ethereum is also in the midst of a multi-year upgrade. Pre-qualified offers are not binding. Unlike Bitcoin or Litecoin, companies are really using Ethereum as a building block - something more akin to diamonds than gold. Since the beginning of August 2021 (when protocol update EIP-1559 was deployed), the growth of ETH supply has declined without a reliance on a hard supply cap. Crypto isnt something you can physically own, like real estate. Ethereums capacity to serve as a platform for other technologies and services is one reason some investors are upbeat about its future. The price of both will between $265,00 and $295,000 that year. 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. And I wondered: should I buy Ethereum? We believe everyone should be able to make financial decisions with confidence. Aside from their rapid rises and their distinction as the two biggest cryptocurrencies by market capitalization, the similarities more or less end there. 2021 was a strong year for Ethereum, as it hit its all-time high of $4735 in November. ALSO READ: Why Crypto Is More Volatile Than Stocks. 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. Both Bitcoin and Ethereum have exhibited a positive correlation in the past years. Our partners compensate us. One of the crypto worlds long-awaited events since 'The Merge' last year, the Shanghai Update promises to enhance Ethereum's liquidity by unlocking the staked ETH in the Beacon Chain. 3 Cryptocurrencies Poised for Monster Rebounds in 2022. With a smart contract, you dont need a third party to perform credible transactions. Finally, you might need to create a separate crypto wallet to hold your ether coins. The biggest security threat to Ethereum happened back inMay 2016. If that's the case, prices could plummet when the bubble bursts. She's been a speaker at both CardCon (2017, 2018) and FinCon (2019). We will only display websites accepting Answer (1 of 246): Asides from Bitcoin, Ethereum is the next big thing about cryptocurrency. In other words, I now believe that Ethereums price rise acceleration will shorten the period when a parity between ETH and BTC will occur. The last Bitcoin will be mined in the year 2140. Ether (ETH), the native token on the blockchain network Ethereum and the second-largest cryptocurrency by market cap, is a risky and volatile investment. It was called the DAO: Decentralized Autonomous Organization. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. Ethereum is the blockchain technology behind Ether. But it has been going on for a good while. 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. According to the Wallet Investor experts, its price will reach $3821.15. However, this is not the only factor that has influenced Ethereum's value, but it could be one of the factors. For many, investing in Ethereum has proven to be a great . They can use a smart contract built on Ethereum. and have not been previously reviewed, approved or endorsed by any other Here are some key things investors should know about BTC in the Bitcoin versus Ethereum investment debate: Highest attention from large investors. 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 October 2021, ProShares Bitcoin Strategy ETF (BITO) launched, becoming the first SEC-approved crypto-based ETF. 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. While there are currently plans in place to increase scalability and reduce gas fees, as of 2023 the costs can still be prohibitive. There are two sides to every coin. In the past three months, ETH has surged by 36 percent. Disclaimer: NerdWallet strives to keep its information accurate and up to date. After that, though, it slipped back down and fell to close the year at $34.12. You can earn additional Ethereum by staking. While it has somewhat recovered since then, it can be tough to stomach downturns like these. For now, heres a list of the essentials you need to know before investing in Ethereum: Transacting with Ethereum is very similar to Bitcoin -- but there are still a few differences. View NerdWallet's picks for the best crypto exchanges. Ethereum Merge and Everything in Between. Ethereum lost 84% of its price value after the so-called 2017 crypto bubble popped -- but Ethereum did not die. But will investors keep edging back in? 2023Cryptomaniaks. Investors and traders may anticipate fewer interest rate hikes than last year and may be interested in buying crypto assets. Bitcoins supply will be limited to 21 million Bitcoin; its scarce -- much like gold. One really simple reason is that it has been significantly outperforming Bitcoin. Network utility. The upside could be rewarding, but you should also be prepared for significant downturns, including a complete loss. Ethereums capacity to serve as a platform for other technologies and services is one reason some investors are upbeat about its future. Let's put that performance in perspective. As a result, we can assume that Ethereum will compete with EOS and other competitors without much trouble. Ethereum's high gas fees. The Ethereum network is at the forefront of the still-nascent decentralized finance, or DeFi, area. That represents a gain so far this year, of 273%. His passion and genius are committed to improving Ethereum no matter what. 2 Reasons Why Ethereum is NOT a Good Investment There are two sides to every coin. Tags: investing, cryptocurrency, Apple Inc., Meta Platforms Inc, CME Group, Nike, Walmart, Best Buy, McDonald's, MicroStrategy, Block, Tesla Motors, bitcoin, Ethereum, decentralized finance, blockchain. As of Jan. 22, the dollar value of all outstanding Bitcoin was around $440 billion. Particularly notable is that ether's rally came amid a. Ethereum's widespread utility could benefit Ether as well. Thanks to it, the speed will increase, the risk of a 51% attack will be reduced, and the project will become more sustainable. Your all-in guide to help you make the best decision. The newest difference between Bitcoin and Ethereum has arisen after the completion of the Ethereum "Merge" in September 2022. Ethereum ( ETH -2.95%) has been. Is ether a good investment in 2021? This is likely because BTC is seen as a store of value, and in times of market volatility, it is the first cryptocurrency investors would turn to. But before you invest, it's important to understand the advantages and disadvantages. Claire Tsosie is an assigning editor for NerdWallet. When evaluating offers, please review the financial institutions Terms and Conditions. Ethereums use case goes beyond crypto. But Ethereum 2.0 is in the works. Multiple crypto platforms where you can buy or sell Ethereum and other coins have crashed or been hacked, leaving users without access to funds. NerdWallet's ratings are determined by our editorial team. 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. This is one more reason why 2023might be a good time to buy Ethereum and participate in the termination of censorship. This would further eliminate banks and centralized third parties from the transaction process. But it may not be the best store of value, because Ethereum does not have a maximum supply. In 2022, many macroeconomic factors affected the global economy. For example, on March 11, the New York Times reported that, during a Christies auction, a JPG file sold for $69.3 million. It works like this: A user can commit Ethereum they already own in exchange for the chance to approve a new block of transactions, earning a reward if they perform this task well and putting their stake at risk if they dont. Ethereum is the most-actively used blockchain. They often do. It has more media coverage and is the most established crypto asset. One Way to Earn Passive Income, Get more smart money moves straight to your inbox. Multiple crypto platforms where you can buy or sell Ethereum and other coins have crashed or been hacked, leaving users without access to funds. Meanwhile, Crypto commentator Alex Saunders has a $10,000 ether price prediction. (The author is the CEO and co-founder of Mudrex, a global crypto investing company). Moreover, it is likely to continue to do so.