Cryptocurrencies have garnered worldwide attention this year with emerging altcoins like DOGE and SHBA minting new millionaires. However, volatility with these coins also lends itself to folks losing valuable investment capital. For investors looking to dabble in the crypto space – it might make the most sense to consider more established currencies like Ethereum – but should you buy Ethereum?
What is Ethereum? Should you buy it? Let’s take a closer look.
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What is Ethereum?
Ethereum is the world’s second-largest cryptocurrency by market capitalization next to Bitcoin. It’s newer than Bitcoin, more versatile yet more established than other newer, more volatile altcoins making headlines.
Ethereum is attractive to investors for several reasons. We like it because it requires less energy to mine. In fact, Detractors claim the bitcoin mining industry is enormously energy-intensive and damaging, currently at 120 TWh (Terawatt hours per year), the equivalent of a small country. It has been said that bitcoin actually uses more energy than Argentina. With the recent headlines from Musk distancing Tesla from Bitcoin transactions for sustainable energy reasons, this might make Ethereum a solid short/long-term play based on this alone.
Ethereum is also more competitive than Bitcoin as it allows for faster transactions across many more business applications.
Many digital currencies run on Ethereum’s platform, which has a strong 6 year track record. ETH 2 is currently rolling out as the new Ethereum platform which allows it to support enhanced security, far more transactions per second and consume even less energy.
Ethereum also beats Bitcoin with it’s smart contract blockchain ledger. In essence, these allow for automation when a specific set of criteria is achieved. In essence, these contracts can remove middlemen that might otherwise slow down the process by automation.
Should you buy Ethereum?
Any investment has inherent risks and, although cryptocurrencies continue to grow in popularity, investors must remember that the risks are even greater with crypto as they remain incredibly volatile.
Part of the reason crypto continues to dominate the headlines is because of the volatility. One day you’ll see mindblowing gains and the next, you’ll see the opposite.
Sure, the prospects of Ethereum are promising – in fact, you’d have nearly $2500 with every $100 invested back in July 2015.
If you’re like me and a little more risk averse, you may want to set aside a small amount of money to allocate to Ethereum or other coins every month.
However, if you’ve got more of an appetite for risk, the long term prospects for Ethereum seem incredibly promising – if you can stomach significant volatility and not over leverage your capital, that is.
Should You Buy Ethereum?
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