Typically, Ethereum is a platform used to create decentralized products. In this case, ether is the digital asset that powers blockchain and the Ethereum platform. Since its release in 2015, ether has staged serious competition with Bitcoin. Both of the currencies have experienced a surge in growth over the years.
After Bitcoin hit the market, many digital assets have been introduced into the crypto ecosystem. Though XRP and Litecoin were key Bitcoin rivals, the entry of Ethereum into the crypto market has posed a major threat to the popularity of Bitcoin. This is because Ethereum is not an ordinary digital asset.
Besides being a crypto payment method, Ethereum is a great resource for developers. The supercomputer version of digital assets offers a digital infrastructure for developers to develop decentralized applications.
Typically, ether is a highly volatile investment compared to the stock market. If you are scared of the extreme volatility associated with trading digital assets, ether then the business venture is not for you. So is it worth investing in the ether? Read on.
Unlike traditional investments, most digital assets are highly liquid. The worldwide network that includes trading platforms, online brokerage, and exchanges gives it an edge over other businesses. If you are looking for quick and short-term profit, you can leverage the volatility aspect to wreck in some profit.
However, the wider market segment and high demand make the digital asset ideal for a long-term investment. Notably, you can trade Ethereum for gold, cash, and other digital assets at an incredibly low fee. Just like traditional currencies, you can use Ethereum to sort out your needs at any time.
Less affected by inflation
Unlike fiat currencies regulated by various Nations, the blockchain technology under which Ethereum survives makes it difficult to manipulate the value. This saves the digital currency from the effects of inflation.
High inflation is associated with a sharp decline in the value of traditional currencies. To survive inflation, various governments impose measures to counter such effects. Unlike digital currencies which are decentralized and few in numbers, an increase in value is inevitable.
Unpredictability in nature
Being new into the market comes with some sense of high expectations. This results in swings in price which open up more growth opportunities. Over time, digital currencies have gradually been embraced for various transactions across many platforms. The trend has highly contributed to the growth and popularity of Ethereum and other digital assets.
Long term growth potential
What makes Ethereum a perfect type of investment is easier access by traders and a high potential for long-term growth. In fact, Ethereum has high growth potential than Bitcoin. This is due to the scalability of the platform which gives room for improvement by developers. Therefore, investing in Ethereum has high chances of wrecking in higher return investment in the future.
According to coinprice forecast, a top-tier crypto reports platform, the price of Ethereum is likely to hit $5000 by the end of 2030. The report further indicates that the price of Ethereum is likely to hit $10,000 by 2023 before crossing the $20,000 in the years 2025.
If you are a long-term investor who is not ready for short-term losses, then investing in Ethereum is a perfect choice for you. For more information regarding bitcoin trading visit YuanPay Group
High demand in the crypto market
Ethereum has so far managed to rival Bitcoin in the crypto market. Fueled by the growing demand for digital assets, the price of ether has gone up dramatically. In fact, most digital currency enthusiasts believe that purchasing Ethereum tokens and holding to sell it out when the price goes up is an ideal way of generating profit.
Just like in a typical market environment, the increase in demand influences the price. Recent statistics indicate that the price of Ethereum almost crossed $1800 in February 2021. This ranked the altcoin third after Bitcoin and Bitcoin cash.
The demand for Ethereum is projected to surge big time over the years. This is attributed to the scalability of the Ethereum blockchain infrastructure. Diversification of the role Ethereum plays makes it appealing for most crypto investors. In that case, ether is not only ideal for short-term investment but long term.
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