Ethereum has increased in popularity since its inception in 2015, with the cryptocurrency Ether (ETH) presently trading at $2,930. Experts believe that by 2022, it will have increased in value by up to 400 percent.
So, why is Ethereum so popular?, and what are the advantages of this blockchain and cryptocurrency over others, such as Bitcoin, which is the only crypto on the market that is more popular than Ethereum? We’ll take a look at Ethereum investment in this guide.
What are the pros of investing in Ethereum?
According to Analytics Insight, there are three main advantages to opting for Ethereum. These are as follows:
Lower inflation risk: Inflation is a hot topic right now, and Ethereum includes a built-in method for it that is less vulnerable to tampering, lowering the chance of your cryptocurrency’s value plummeting.
Liquidity: One of the key reasons for the popularity of Ethereum is that it is one of the most liquid cryptocurrencies, meaning it can be exchanged rapidly and simply.
Volatility: As Analytics Insight explain, the volatility in the Ethereum marketplace could actually be a positive since smart investors can identity patterns and profit from the volatility.
What are the cons of investing in Ethereum?
In a report from Analytics Insight, they also highlight three main cons of Ethereum, which are:
Scaling Issues: Because Ethereum is a ledger, it is vulnerable to failures and hacks, therefore scalability difficulties are a serious worry.
Complicated programming language: Ethereum’s native language can be difficult to understand and there aren’t many resources to help people learn it.
Volatility: As much as volatility can be an advantage for some, that makes Ethereum a risk for others. The price of Ether (ETH) has fluctuated a lot in the past and may continue to do so.