Bitcoin is the more established and mainstream of the two, which makes ETH just a touch riskier. View NerdWallet's picks for the best crypto exchanges. Ethereum could end up being a smart investment, but it's not right for everyone. Ethereums technology and purpose are different than Bitcoin. Crypto could be a life-changing investment, but it's not right for everyone. Ltd. Crypto products and NFTs are unregulated and can be highly risky. Fundstrat Global Advisors analyst David Grider ether price prediction is that the altcoin could reach $10,500 in the long term. Ethereum has gained about 84 percent from its lowest cycle in the past seven months. The Motley Fool has a disclosure policy. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. 2023Cryptomaniaks. It has grown 6000% in 2018 and is the fastest growing skill on freelancing websites. NFTs have been rising in popularity as a means of providing for the sale of digital assets. You can earn additional Ethereum by staking. As of Jan. 22, the dollar value of all outstanding Bitcoin was around $440 billion. This story was published at an earlier date and has been updated with new information. His passion and genius are committed to improving Ethereum no matter what. Unlike a bond, you arent promised payments in the future. It isthe king of crypto, the first crypto that ever existed, and the one that best represents the fundamental beliefs that led to their creation but ETH it might be smart to buy too. Is Ethereum a good investment? Well,if youre simply looking to invest in cryptocurrency and you can only pick one, perhaps Bitcoin would hold up better. If that's the case, prices could plummet when the bubble bursts. It also allows owners to stake Ethereum, earning additional ETH in return. The upside could be rewarding, but you should also be prepared for significant downturns, including a complete loss. Here at CryptoManiaks, we are staffed with people who have all worked, studied, and generally kept up to date on cryptocurrencies. The current CoinMarketCap ranking is #238, with a live market cap of $133,535,311. Remember: You should buy Ethereum now only if youre prepared to keep your ETH safe! Out of the many cryptocurrencies that have made huge waves in the crypto world recently. Ethereum was at $198.47 on April 28 last year. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. So lets peak at a few reasons you should consider not to buy Ethereum. There are plans to indirectly lower prices through higher transaction throughput, but that will require implementing unproven technology that isnt yet available. Definition and Examples of Blockchain Technology, What is Crypto Staking? Ethereums whitepaper, which outlined its technical details, was released in 2013, and the first Ether sale took place in 2014. Plus with Ethereum 2.0 on the way -- right now the price could be a bargain. 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. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Ethereum is the blockchain technology behind Ether. If BTC surges in value, ETH also tends to follow suit. 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. On the one hand, the US Federal Reserve increased interest rates aggressively to address inflation. About the author: Kurt Woock is a writer at NerdWallet. As a result, they may be less willing to invest in volatile assets like cryptocurrencies and instead keep their cash on hand. Simply put, Ethereum is a smart computer. 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. Cryptocurrency Price Today: Most Popular Coins Like Bitcoin, Ethereum Gain As NEM Becomes Biggest Loser, Silvergate Collapse: Why The Fall Of A Crypto-Friendly Bank Has Led To Market Meltdown, Cryptocurrency Price Today: Bitcoin, Ethereum Slide As Market Sees Bloodbath Post Silvergate Debacle, Crypto Lender Voyager's Customers Vote To File For Bankruptcy: Here's Why, Cryptocurrency Price Today: Top Coins See Minor Movements, Maker Becomes Top Gainer, Uzbekistan Cough Syrup Deaths: Marion Biotech Loses Manufacturing License After Toxins Found In Most Samples, Tripura: PM Modi & Home Minister Amit Shah To Attend Swearing-In Ceremony On March 8, Manish Sisodia Alleges Mental Harassment, Court Extends CBI Custody By 2 Days Key Developments, India's Merchandise And Services Exports Will Reach USD 750 Billion This Year: Piyush Goyal, Public Sector Policy Is Not A Crazy One, Govt Is Not Selling Out Everything: Finance Minister Nirmala Sitharaman. Ethereum is the world's second largest cryptocurrency behind Bitcoin, its price recently surging to a record high of $3,400 at the beginning of May 2021, a quadrupling in its value since the. Thanks to it, the speed will increase, the risk of a 51% attack will be reduced, and the project will become more sustainable. 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. Investing in cryptocurrency can come with hefty taxes, which could limit the number of people willing to invest. Also, Ethereum 2.0 plans to make the blockchain faster and more scalable so it can be used for even more applications. Yes, investing in Ethereum is worth considering. Moreover, Ethereum transaction fees are at all-time high levels. Here are some key things investors should know about BTC in the Bitcoin versus Ethereum investment debate: Highest attention from large investors. 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 . But enough history investors want to know which is the better buy: Bitcoin or Ethereum? Skewed energy consumption dynamics. 5 Hypergrowth Stocks With 10X Potential in 2023, power tamper-proof decentralized financial contracts and applications, as a means of providing for the sale of digital assets, during a Christies auction, a JPG file sold for $69.3 million, determined by members of Ethereums community, Robert Bollinger: Meet the Man Behind Mullens Push Into Commercial EVs, A.I. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. Sign up for stock news with our Invested newsletter. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105. 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. Time will tell how the circulating supply of ETH progresses but, unlike Bitcoin, there is no official cap on supply. Funds are volatile, and transactions are irreversible. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. In November 2021, the price of Ether jumped to an all-time high of over US$4,800. Meanwhile, Crypto commentator Alex Saunders has a $10,000 ether price prediction. Smart contracts let decentralized applications run automatically on the blockchain when certain predetermined conditions are met. In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. Multiple crypto platforms where you can buy or sell Ethereum and other coins have crashed or been hacked, leaving users without access to funds. So, what are some more reasons to invest in Ethereum? These ETFs offer a range of investing strategies. Cost basis and return based on previous market day close. We at Cryptomaniaks have had our fair share of challenges and mistakes. The team is working on Ethereum 2.0 now. Cryptocurrencies like Ethereum are unlike any other kind of investment. ALSO READ: How Crypto Diversification Can Protect Your Portfolio Against Volatility. Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers because of its potential applications, like so-called smart contracts that automatically execute when. While crypto prices have plummeted over the past few weeks, that doesn't necessarily mean it's a bad time to buy. The price of both will between $265,00 and $295,000 that year. Ethereum is currently priced at roughly $380 after a fall from the current 2020 high of over $490. This particular crypto crash isn't the first time Ethereum has experienced dramatic losses, either. (The author is the CEO and co-founder of Mudrex, a global crypto investing company). As the years progress, Ethereums technology will grow. If Ethereum were to disappear overnight, a much larger swath of the crypto world would also vanish. With a smart contract, you dont need a third party to perform credible transactions. 2023 InvestorPlace Media, LLC. 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. There are two sides to every coin. Like Bitcoin, you can invest directly in Ether by purchasing coins. They can use a smart contract built on Ethereum. And they can pay with Ethereum too. Some experts also believe we're in a crypto bubble and that digital currencies like Bitcoin and Ether are overvalued. Our opinions are our own. Since. Ultimately, the debate between Bitcoin and Ethereum as investments comes down to an investor's risk profile. Prior to joining NerdWallet, Kurt was a writer and educator for Colorado PERA, a retirement system for public employees. Ethereum lost 84% of its price value after the so-called 2017 crypto bubble popped -- but Ethereum did not die. As the past few weeks have proven, cryptocurrency is still an extremely volatile investment. She has edited articles on a variety of topics, including business software, Medicare and home improvement. Transaction fees can be a drag. These gas fees, which compensate participants for validating transactions, can be outrageous, especially for smaller transactions. CoinCodex gave a short-term ethereum crypto price prediction for 2023 that estimated ETH could fall to $1,594.18 by 27 February before continuing to drop to $1,399.99 by 25 March. Ethereum (ETH -0.47%) has been making waves in the crypto world, rivaling Bitcoin (BTC -0.29%) as one of the most popular cryptocurrencies. No major companies have publicly bought Ether to maximize returns on cash. It will not require mining, as used in the Bitcoin proof-of-work system. 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. But it may not be the best store of value, because Ethereum does not have a maximum supply. Over the years, weve experienced countless issues. You can easily trade Ethereum for cash or. There are plans to indirectly lower prices through higher transaction throughput, but that will require implementing unproven technology that isnt yet available. Funds are volatile, and transactions are irreversible. The two leading cryptocurrencies both suffered a severe sell-off in 2022. All these negatives are true. But is Ethereum a good investment 2021 for individuals? For example, Ethereums blockchain can be used to power tamper-proof decentralized financial contracts and applications. If you're on the fence about investing, there are two reasons to consider buying now -- and one reason to avoid it. Answer (1 of 10): There are a number of reasons why Ethereum dominated Bitcoin in 2021, including the emergence of NFTs and those trends only seem set to accelerate in 2022. Unlike Bitcoin, which is pretty much like cash for the Internet, according to Bitcoin.org, Ethereum has grander ambitions. Ethereum price prediction in 2021 and beyond Ether surging to a new all-time high has caught many cryptocurrency investors' attention. At one time an online-only rewards platform, Lolli has since expanded into brick-and-mortar shopping rewards with a feature called Card Boosts, which allows consumers to turn their everyday credit and debit cards into Bitcoin rewards cards when shopping at Lolli partners. However, several reasons are attributed to the recent surge above the $1,600 and $1,700 levels. Learn More. If Ether is required for applications on the Ethereum blockchain, Ethereum's success could give Ether a competitive advantage over Bitcoin and other cryptocurrencies. People may receive compensation for some links to products and services on this website. Ether also works as a virtual currency and store of value. In addition, one major criticism of cryptocurrency, specifically Bitcoin, is how energy-intensive it is. (Getty Images). Bitcoin was initially meant to be a cryptocurrency -- emphasis on currency. Ethereum is different and is intended to be a platform for smart contracts. Analysts say investors should buy these undervalued stocks. ( Image Source : Bastian Riccardi/Pixabay ). In addition, FTX, FTX.US and BlockFi filed for bankruptcy in 2022. It makes sense that, according to cryptocurrency researcher Kevin Rooke, 94 out of the top 100 blockchain projects were launched on the Ethereum network.. This information may be different than what you see when you visit a financial institution, service provider or specific products site. ALSO READ: Bitcoin Is Seeing A Resurgence This Year After A Challenging 2022: Heres Why. But as weve made mistakes buying and selling Ethereum, weve also learned. This is why Ethereum is a good investment if youre interested in investing in cryptocurrencies beyond Bitcoin. Health care stocks dominate this year's biggest stock market gainers. While there might be a correction after a huge price surge, the involvement of large investors helps provide a level of price support. One Way to Earn Passive Income, Get more smart money moves straight to your inbox. As the de facto cryptocurrency leader, no other coin even comes close to Bitcoin. The last Bitcoin halving was in May 2020; at the current pace, the next halving will be sometime in 2024. With Bitcoin, you can store value and pay for things, while with Ethereum, you can program smart contracts, tokenize assets, and more. They often do. If you think that Ethereum price predictions make it a good investment, you might want to know how to invest in it. Crypto tokens are "mined" through a series of complicated computer processes. Also, the network can only process about a dozen transactions per second, regardless of demand.