These days, it seems that everyone is talking about cryptocurrency. In the past, bitcoin was the one that dominated the conversation. However, bitcoin has come under scrutiny recently, mainly due to how much energy it costs in order to mine and use.
This has led people to search for bitcoin alternatives, like ethereum. But is ethereum a good investment?
Its value has shot up significantly in 2021. But does it have more room to run? And will it still be valuable in the future?
These are all important questions to ask. And luckily for you, we’ve got the answers that you are looking for.
So keep on reading and we will help you figure out if ethereum is a good investment for you.
Ethereum 2.0 Could Give It a Competitive Edge
As we already mentioned, cryptocurrencies take up a lot of energy. A crypto token needs to be mined via a variety of complex computational processes. That mining process takes up a lot of power and critics have pointed out that it is leading to high carbon emissions.
In fact, Elon Musk, the CEO of Tesla, at one point said that his company would no longer accept bitcoin. Although that might change soon as bitcoin miners start being more efficient.
Bitcoin doesn’t have someone running the platform who is able to make changes. That’s part of the benefit and downside of it.
Ethereum, on the other hand, is making moves to create technology that is more energy-efficient. Ethereum 2.0 is going to be an updated version of the platform that should come out sometime soon.
It should be pointed out that you don’t trade ethereum. Ethereum is simply a decentralized platform of different applications. Ether is the name of the token that is used within the platform.
The Ethereum Blockchain Has More Utility
In order for a crypto to survive, it needs to be viable in the real world. Today, bitcoin is popular and accepted by many vendors.
However, ethereum provides a platform for applications to be shared and developed. This means that it stands a chance of staying viable and growing in popularity.
Also, NFTs are bought and sold on the ethereum platform. Don’t be surprised if banking transactions start to become more common on this platform. Of course, only time will tell just how useful something like ethereum actually is.
You can find more info on this page about ethereum and its price.
Is Ethereum a Good Investment?
So, is ethereum a good investment? If you are looking to invest in a cryptocurrency, then you likely can’t go wrong with ethereum. It isn’t as big as bitcoin but it’s not so small that it risks shrinking into obscurity.
Of course, it’s always a good idea to start small with any investment and see how comfortable you are.
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