Is Ethereum a good investment in 2021?

Five years ago, Bitcoin (BTC) was priced at only around USD$500, but now, you can get at least USD$50,000 when selling one Bitcoin. In other words, if you invested in BTC five years ago, you’ll get at least a 10,000% return on investment (ROI). Because of this growth, many people have started to look into cryptocurrencies, wondering if there’s an asset as promising as Bitcoin. One investment opportunity that’s showing great potential today is Ethereum. 

Ether As A Cryptocurrency 

Unlike Bitcoin, Ethereum isn’t a cryptocurrency. It’s a blockchain technology that handles decentralized products such as cryptocurrencies. If you’re looking to invest in a cryptocurrency, then what you’re looking for isn’t Ethereum, but Ether (ETH)—the second-largest cryptocurrency next to Bitcoin. So, a better question would be, ‘Is Ether a good investment in 2021?’

Will Ether Become The Next Bitcoin?

At the moment, Ether isn’t as big as Bitcoin, but it does have a lot of potential, especially since Ethereum is a relatively advanced blockchain platform.

The fact that Ether is managed through Ethereum makes it extremely different from Bitcoin, which is handled by all kinds of blockchain technology. It’s more standardized, transparent, secure, and most importantly, reliable. If you want to buy Ether, you won’t have to go through all kinds of transactions. Since Ethereum handles most Ether transactions, tracking Ether tokens is a lot less difficult than when you invest in Bitcoin.

On that note, if you’re already convinced that Ethereum is a worthwhile investment, you can learn more about buying this asset through Swyftx. But if you’re not yet convinced, it might be worth looking into a couple of things first.

Ethereum’s Effect On Ether’s Reliability

One of the first factors you need to consider when investing in cryptocurrency, or any other asset for that matter, is if it’s liquid enough. Liquidity refers to how often the price moves.

If a cryptocurrency is liquid, for example, it would change very often, perhaps a few hundred times a day. On the other hand, if the asset isn’t liquid, then the price won’t move much. Perhaps ten times a day would be high enough. What makes Ether a great investment is that it’s more liquid than any other cryptocurrency.

This is mainly because Ethereum handles most transactions concerning Ether, so it’s much easier to buy or sell the asset. Since it’s much more accessible, there will be a large number of trades and high demand, so its price changes quite often. Moreover, since Ethereum is relatively transparent with its transactions, it’s easy to track your investments. While there’s still a chance of hackers stealing your cryptocurrency, it would be much easier to recover them. 

In other words, Ethereum makes the Ether cryptocurrency significantly more reliable. Not to mention, Ethereum is also a relatively new technology, so you can expect more from it in the future.

New Cryptocurrency Means Higher Volatility  

Bitcoin has been around since 2009, while Ethereum was created in 2015. So, the Ether cryptocurrency is much younger than Bitcoin. 

As a newer cryptocurrency, this asset is slowly becoming mainstream with each passing day. The fact that it’s relatively new means there will be unpredictable swings in its price, and its volatility will be off the charts, which may result in massive gains. 

However, it’s also worth noting that the asset must also be relatively old. That way, you can quickly know its worth by checking its track record. As luck would have it, six years is the perfect age to start investing in a cryptocurrency. It’s not too young and not too old. 

Greater Growth Than Bitcoin 

Although the value of Ether is only second to Bitcoin, its growth rate is comparable to Bitcoin’s in its early days and even greater than Bitcoin’s growth rate at the moment. Even better, it shows no signs of stopping. In short, Ether can potentially become the second Bitcoin. 

Furthermore, institutions such as Reddit, IBM, Amazon, and Microsoft have invested in Ethereum. So, with such major players participating in the race, there’s a good chance this growth rate would only increase in the coming years as more and more organizations are starting to build up their ETH wallets. 

Good Hedge Against Inflation 

An inflation hedge is an asset that increases in price when the cost of living decreases. Considering the ongoing pandemic, there’s a huge chance the cost of living in many countries will increase, which is why it’s even more imperative to invest in an inflation hedge in 2021. So, where does Ethereum fit in all this? 

For starters, intangible assets have proven to be a good hedge against inflation time and time again, and Ether is no exception. If you want to invest in an inflation hedge, then there’s no better time to invest than now. 

Final Words 

Ethereum is relatively young compared to other cryptocurrencies, but it’s already a promising investment. It may not be as big as Bitcoin, but it’ll surely continue to become a worthwhile asset in the coming years. If you’re in a position to invest in this platform, it’s a worthwhile consideration in 2021.

Disclaimer:  The above-mentioned story is for information purpose only and the viewers are requested to look forward accordingly as Business Upturn does not take any responsibility of the losses that may occur in further activities of traders and/or buyers.