If you’re a crypto investor or have been wanting to invest in crypto and have not added Ethereum to your portfolio then after reading this article you are going to reconsider that.
You see Ethereum is one of the most promising technologies on the market in the ever expanded realm of digital money. And for those who are unfamiliar with Ethereum, it is critical to realize that it’s much more than digital currency.
So what I’ll do here is provide a basic analysis on the cryptocurrency so that you don’t have to and in this article, we are going over why you need to own at least five Ethereum and towards the very end. We will also be going over some major Ethereum catalysts that are right around the corner and price predictions that are going to shock you.
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Now since its launch in 2015 Ethereum has skyrocketed in value going from one dollar and fifty cents per east to over two thousand one hundred dollars at the making of this article. With an all-time high of roughly four thousand dollars.
The fast rise of Ethereum has turned many investors into millionaires overnight. However, despite its rise in value few people know what Ethereum is or why it’s a smart investment, or why it should even hold for the long term.
You see Ethereum is a public blockchain-based computer platform that it’s open source. As a result, Ethereum is being utilized as a platform for creating groundbreaking applications. And ether is a digital currency that allows those programs to function. You see when you buy Ethereum you’re actually buying Ether. However, in the world of digital currency investing the names, Ethereum and Ether are frequently swapped.
Ethereum involves investing in one of the most powerful blockchain systems available. And that platform’s potential is infinite. You see smart contracts which enable all of these features are algorithms that are programmed to perform a certain purpose when certain circumstances are satisfied.
When the collateral is placed in the correct wallet or account for the peer-to-peer loan scenario. For example, the contract turns off the results lending the money. Faster execution cheaper costs and the absence of human mistakes are some of the benefits of utilizing a smart contract instead of a traditional lender.
Now before we go over some of the price predictions and catalysts that might surprise you we need to go over some of the most current and up-to-date Ethereum partnerships that you need to know.
Ethereum has partnerships with multiple Fortune 500 companies including Intel, Microsoft JPMorgani BP, all of which are working to advance Ethereum network technology with the objective of adopting it into their own business.
You see by 2021 the EEA or enterprise Ethereum alliance will have reached 500 members which according to its website EEA is a member-led industry organization. Whose objective is to drive the use of Ethereum blockchain technology to empower all companies.
In fact, Mastercard, UBS, and JPMorgan invested 65 million dollars in an Ethereum blockchain development studio.
These businesses are interested in Ethereum for a variety of reasons they want the platform because of its speed and efficiency but they also want the Ethereum network because of its smart contract capabilities.
And we are starting to see Ethereum be more incorporated by financial institutions as we have JPMorgan becoming the first bank to allow its financial advisors to sell crypto funds to the retail wealth management customers.
According to a source close to JPMorgan this applies to almost all of its banks clients including those who use its self-directed retail trading app.
Not only that but we also have confirmation that Elon Musk owns Ethereum. Now for some major catalysts that you must know.
First; We have the Ethereum triple holding event now the EIP1559 and proof of stake are two key improvements. The EIP1559 which adds a burning cost on every transaction is a critical update on this network.
This will result in a severe supply shock another essential aspect of the Ethereum network’s feature upgrade is proof of state. This is without a doubt the most significant upgrade in Ethereum’s history.
And this is almost like the three Bitcoin hovering events we’ve had in the past. As every four years, the Bitcoin mining limit is cut in half causing the price to go parabolic and shoot up since bitcoin becomes more scarce and harder to mine.
Second; Bitcoin ETFs were authorized first in Canada followed by Ethereum ETFs. As a result three to for Bitcoin ETFs and two to three Ethereum EFTs are currently available in Canada. And that’s great and it might happen in other nations where cryptocurrency is extensively used. And once ETFs are legalized they have the potential to increase market liquidity and according to JPMorgan CEO.
Ethereum improvements may kickstart a 40 billion dollars staking business. The stake Ethereum in the Ethereum 2.0 staking contract is approaching 6 million.
And that shows a lot of faith in the Ethereum 2.0 network and its developer's ability to deliver on the Ethereum 2.0 promise.
Third Vitalik Buterin Ethereum founder has stated the long-term plans for Ethereum.
Which he believes that Ethereum could provide a better social media environment that would foster higher quality posting and serve as a foundation for people’s identity online. This would be a direct competitor to centralized social media networks which he’s not in favor of due to their widespread data collection and incentives that reward people with a high level of interaction and light. The idea is for Ethereum wallets to serve as online identities that could be used to sign into a broad range of Ethereum based apps.
Similar to how Gmail and Facebook accounts are used. Lastly, we have to go over some Ethereum price predictions. Now keep in mind that it’s hard to predict the price of any cryptocurrency almost even impossible. But it’s much more difficult when it’s Ethereums. Because we have to remember the massive drop in the 2018 bear market.
As Ethereum lost more than 92 percent of its value but it has since recovered. As a result, the Ethereum blockchain is unquestionable the most costly smart contract platform as well as one of the top five cryptocurrencies by market cap.
Now roughly 90% of tokens are Ethereum based with Ethereum accounting for 89% of the top 1000 tokens. So despite the recent price fluctuations, there is a lot to be happy about if you already own or want to acquire each the current price of 1 ETH is roughly 2 100 with a market cap of 254 billion dollars.
The all-time high for ETH is four thousand three hundred dollars. But with so many high-profile projects adopting Ethereum and Ethereum 2.0 on its way. We might soon see an all-new time high for Ethereum.
And Ethereum has also been nicknamed the amazon of information by Goldman Sachs. Which they predict that its value could rise until it ultimately controls the market and surpasses Bitcoin.
Now the information was released and shared on Twitter saying given the importance of real uses in deciding the store of value ether has a strong probability of replacing bitcoin as a dominant store of value.
Now it appears that the value of Ethereum will increase in the near future as there is more market demand more institutional adoption and with the up-and-coming upgrades for Ethereum east will become more scarce therefore increasing its value. Now based on a poll of 35 well-known analysts finders' newest cryptocurrency predictions report an Ethereum price prediction end of the year of four thousand five hundred dollars or five thousand dollars.
There’s also an average price prediction of nineteen thousand dollars by 2025 and they all agree that ETH will be the dominant cryptocurrency. Overall 51 of all analysts believe that by the end of 2022 Ether not Bitcoin would be the most commonly used digital money.
Lastly, if you plan on holding for the long term then it might not be a bad idea to stake your Ethereum. And with the integration of Ethereum 2.0 coming it's the way we are going to be able to stake our Ethereum to get passive income.
Now you will actually need 32 ETH to become a full validator and staking helps secure the network and earn rewards in the process. But if you have less than 32 ETH you will still be able to add a smaller stake. On staking pools as some companies will help you do it on your behalf. And there are companies doing this and also cryptocurrency exchanges such as Coinbase and Binance. And Binance offers a 5 percent to 20 interest on your ETH.
Showing that Ethereum has massive support for many companies in the crypto space.
Now assuming the annual interest rate is going to be six percent from staking your Ethereum.
And it’s taking 32 Ether today in five years that would earn you a total of 41 Ethereum and 89 000 dollars. And in 10 years that 32 ETH would bring you a total of 50 Ethereum and 109 000 dollars.
Just for staking and not doing anything at all. You will also have to think about how valuable the price of one each will be in 10 years when you have 50 and we can even do this by taking 50 Ethereum or 100 Ethereum. So I guess you could say that it pays to have diamond hands.
Lastly, I am not a financial advisor and only sharing my biased opinion based on personal experience. It is important to keep in mind that there are risks associated with investing in the stock market and that one can lose all of their investment.
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