When interest rates are increased aggressively, it can impact people who borrow large amounts of money. Ethereum, unlike Bitcoin, plays a vital role in NFTs (digital assets tied to unique tokens), decentralized applications, decentralized finance and the creation of other cryptocurrencies. Ethereums capacity to serve as a platform for other technologies and services is one reason some investors are upbeat about its future. Cryptocurrency is not a legal tender and is subject to market risks. All these negatives are true. Over the last 12 months, it's increased by more than 1,700%. Ethereum Classic kept the old blockchain -- along with the hacked funds. Ether might see broader adoption after the network upgrade is complete, which should boost its price. NerdWallet's ratings are determined by our editorial team. It still manages to feel "do-it-yourself" in an era . Comparative assessments and other editorial opinions are those of U.S. News ALSO READ: Why Crypto Is More Volatile Than Stocks. Ethereum will catch up to Bitcoin sometime within the next six years, if past performance continues. With Bitcoin, you can store value and pay for things, while with Ethereum, you can program smart contracts, tokenize assets, and more. In addition, filed for bankruptcy in 2022. Considering Ethereum is one of the higher-priced cryptocurrencies, right now may be a good time to buy when it's "on sale.". Why Is Ethereum Seeing A Surge In 2023? Crypto Rebound: The 1 Cryptocurrency I'd Buy Right Now, These Are My Top Risk-Averse Cryptocurrencies, The One and Only Reason I Am Buying the Ethereum Dip Today, 2 Reasons to Avoid a Roth 401(k) for Your Retirement Savings, Want $1 Million in Retirement? OriginTrail is down 0.89% in the last 24 hours. This is because Ethereum has opted not to set an upper limit on its total coin supply.. Ethereum price prediction in 2021 and beyond Ether surging to a new all-time high has caught many cryptocurrency investors' attention. Its price had sunk below $1,800 as recently as July. The altcoin hit its all-time high in October 2021 at the $4,899 level. Which Is Safer: Stocks or Cryptocurrency? Ether surging to a new all-time high has caught many cryptocurrency investors' attention. This limits the supply of Bitcoin and increasing its value. Ethereum (ETH -0.47%) has been making waves in the crypto world, rivaling Bitcoin (BTC -0.29%) as one of the most popular cryptocurrencies. According to the Wallet Investor experts, its price will reach $3821.15. ALSO READ: How Crypto Diversification Can Protect Your Portfolio Against Volatility. Read more. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, 2 Stocks That Are About to Make Their Shareholders Richer, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. The last time AAPL traded at one five-hundred-seventy-fifth of its current price was in 2003, some 20 years ago. Uncertainty, even about government regulation, leads to a murkier investment environment. The great thing about institutional investors is that they tend to have a long horizon. It's no surprise that investors are interested in cryptocurrencies. Prior to joining NerdWallet, Kurt was a writer and educator for Colorado PERA, a retirement system for public employees. We will only display websites accepting Copyright 2023 Market Realist. The table on the right shows the result of this trajectory. The so-called 2017 bubble has popped. Also, every four years, Bitcoin experiences a halving. There are plans to indirectly lower prices through higher transaction throughput, but that will require implementing unproven technology that isnt yet available. Previously, both cryptocurrencies used the proof-of-work, or PoW, mechanism to validate transactions and secure the blockchain. . But that was assuming that Bitcoin rises just 30% per year on average and Ethereum rises 120% per year. To make the world smarter, happier, and richer. That mining process requires a significant amount of energy, and crypto critics have raised concerns over its impact on the environment. Uncertainty, even about government regulation, leads to a murkier investment environment. Investing in Ethereum is risky, but it could potentially be lucrative. Some experts say that the comparison between Ethereum and Bitcoin is like comparing electricity with gold. Invest better with The Motley Fool. The team is working on Ethereum 2.0 now. Katie Brockman has no position in any of the stocks mentioned. Plus, Ethereum 2.0 will beleaps forward for blockchain technology and smart contract use cases. In other words, ETH has outperformed by almost 3 times, just since the beginning of the year. NerdWallet strives to keep its information accurate and up to date. Many of those applications have cryptocurrencies of their own. Network utility. The foundation laid in 2020 significantly contributed to the run higher, as the markets had jumped out of a "Crypto Winter" earlier that year. Bitcoin Is Seeing A Resurgence This Year After A Challenging 2022: Heres Why, How Crypto Diversification Can Protect Your Portfolio Against Volatility. Unlike Bitcoin, which is pretty much like cash for the Internet, according to Bitcoin.org, Ethereum has grander ambitions. This implies that you may purchase several coins at a significantly lower cost. So, here are the 2reasons why now might be a good time to buy Ethereum and why might ETH be a good investment: Ethereum has faced many criticisms: slow network, power hungry mining, scalability. As experts believe, the price will keep growing . It works like this: A user can commit Ethereum they already own in exchange for the chance to approve a new block of transactions, earning a reward if they perform this task well and putting their stake at risk if they dont. Last year, the Fed cranked up interest rates eight times since March 2022, including four consecutive 0.75 percent base points increases to tackle inflation. Do not sell or share my personal information. Here are some key things investors should know about BTC in the Bitcoin versus Ethereum investment debate: Highest attention from large investors. Ethereum's upcoming Shanghai update, scheduled for release in March this year, could be the primary driver behind the surge in the altcoin's value. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. 5 Hypergrowth Stocks With 10X Potential in 2023, power tamper-proof decentralized financial contracts and applications, as a means of providing for the sale of digital assets, during a Christies auction, a JPG file sold for $69.3 million, determined by members of Ethereums community, Robert Bollinger: Meet the Man Behind Mullens Push Into Commercial EVs, A.I. Keeping your Ethers secure -- and keeping any cryptocurrency secure -- still requires work. The biggest security threat to Ethereum happened back inMay 2016. Adding ether futures trading on CME Group should increase the visibility of the Ethereum cryptocurrency to institutional investors, which could increase ether's price in the spot market. And while a hardware wallet can give you additional protection against crashes and hacks, its still possible to lose your wallet, and with it, your assets. For example, year-to-date ETH is up by $1,993 from $737 where it was on Dec. 31. Smart contracts let decentralized applications run automatically on the blockchain when certain predetermined conditions are met. Let's put that performance in perspective. While Bitcoin has a finite supply, Ethereum possesses vast utility and is poised to undergo numerous upgrades, resulting in exceptional scalability and applications soon. In addition, one major criticism of cryptocurrency, specifically Bitcoin, is how energy-intensive it is. Is Ethereum a good investment in 2021? According to statistics from Coinmarketcap, Ethereum is the second most valuable cryptocurrency by market capitalization with more than 41.3 billion USD and is being traded for about 377 USD (statistics on September 17 . This could result in more volatility and greater risk. The number of deep-pocket investors or the so-called "whales" purchasing the Ethereum cryptocurrency has increased in recent months. Keeping the people capable of making educated decisions is one of the many reasons why Ethereum is valuableso should I buy Ethereum now?. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/ethereum-will-catch-up-to-bitcoin-within-the-next-six-years-if-past-performance-continues/. Bitcoin has the potential to be used as a way to transfer and store value. Answer (1 of 10): There are a number of reasons why Ethereum dominated Bitcoin in 2021, including the emergence of NFTs and those trends only seem set to accelerate in 2022. In fact, many crypto projects have been launched on the network. ( Image Source : Bastian Riccardi/Pixabay ) In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. Her areas of expertise include research and strategy. This is one more reason why 2023might be a good time to buy Ethereum and participate in the termination of censorship. 1125 N. Charles St, Baltimore, MD 21201. In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Both Ethereum and Bitcoin are fascinating -- in their own ways. Ethereum is an established name in crypto. Meanwhile, Crypto commentator Alex Saunders has a $10,000 ether price prediction. One of them is the trouble of buying Ethereum. Previously, she was a credit cards writer at NerdWallet for over five years. You believe we need sustainable energy production and management, Buy Ether only from reputable exchanges (check. Infact by the end of 2022, Ethereum will transition from a proof-of-work (PoW) to a proof-of-stake (PoS) network, which could reduce its energy consumption by over 99% from current levels. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities. Also, as the Ethereum network undergoes changes, some of the Ether coins could be destroyed in the process. In fact, over the course of 2018, Ethereum's price plummeted by nearly 94%. In the past three months, there has been increasing institutional adoption of cryptocurrencies, contributing to Ethereum's rise in value. Collectively we have over 25 years of experience in cryptocurrency and we are passionate about guiding people through the complex world of crypto investing. The Ethereum network upgrade will enable ether staking, which could yield up to 15 percent for investors. Claire Tsosie is an assigning editor for NerdWallet. So dip your toes in the water little by little. after opening a Webull account, activating crypto trading, and completing one [1] crypto trade before 3/31/2023. Finally, if you do choose to invest in Ethereum, make sure you have a well-diversified portfolio, and only invest money you can afford to lose. This could actually be a good thing for investors, however, because a smaller supply of Ether could make it more valuable and drive up its price. Ethereum has seen tremendous growth, but its price has also fallen by 50% or more on many occasions. Theres a group of investors that follow trends. Sometime between year five and six, Ethereum will catch up to Bitcoin. Well, if: Then buying Ethereum in 2023 might be aworthy investment for you. As the years progress, Ethereums technology will grow. Bitcoin was initially meant to be a cryptocurrency -- emphasis on currency. Ethereum is different and is intended to be a platform for smart contracts. Source: Crypto Fees. in music from Valparaiso University and an M.A. With Bitcoin's surge in early 2023, the "crypto winter" began to thaw. What about 50%? Funds are volatile, and transactions are irreversible. Our team is comprised of cryptocurrency investors from all over the globe, and our members come from traditional industries such as finance and engineering to more modern professions like full stack developers and data scientists. Kurt has a B.A. Making the world smarter, happier, and richer. Ethereums use case goes beyond crypto. While technically, this is not an interest rate or a company dividend, the chance to earn. This uses a proof-of-stake system to validate blockchain transactions. 2021 was a strong year for Ethereum, as it hit its all-time high of $4735 in November. Right now, Bitcoin is the most popular and most widely accepted cryptocurrency. Disclaimer: NerdWallet strives to keep its information accurate and up to date. It allows programmers to pick up digital artifact information used in the creation and sale of NFTs. Be sure to weigh the pros and cons as well as consider your own tolerance for risk. In addition, Ethereum is now being slowly upgraded to Ethereum 2.0. To repair the hack and refund people their stolen money, a hard fork took place. It isthe king of crypto, the first crypto that ever existed, and the one that best represents the fundamental beliefs that led to their creation but ETH it might be smart to buy too. The Ethereum network is at the forefront of the still-nascent decentralized finance, or DeFi, area. His passion and genius are committed to improving Ethereum no matter what. But Ethereum 2.0 is in the works. Collectively, we have over 25 years of experience in the crypto world and are all passionate about guiding people through the complex world of crypto investing. That represents a gain so far this year, of 273%. Sign up for stock news with our Invested newsletter. And while a. can give you additional protection against crashes and hacks, its still possible to lose your wallet, and with it, your assets. This information may be different than what you see when you visit a financial institution, service provider or specific products site. You should buy Ethereum if youre more interested in innovation and use cases rather than in scarcity and the economic model of Bitcoin. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. These gas fees, which compensate participants for validating transactions, can be outrageous, especially for smaller transactions. So, should you buy Ethereum? Moreover, it is likely to continue to do so. You should consider buying more when the market is still recovering from its low spot. This smart contract tracking ability is one of the unique aspects that sets Ethereum apart. When Ethereum becomes more energy efficient, it could acquire a competitive advantage in the crypto industry and a leg up over Bitcoin. Also, Ethereum 2.0 plans to make the blockchain faster and more scalable so it can be used for even more applications. Even after a severe crypto market pullback in 2022, Ethereum was recently trading for around $1,628, which means it has advanced 575-fold in less than . If EOS and other so-called Ethereum killers can become faster, better, and stronger than Ethereum -- ETH could be in trouble. Like Bitcoin, you can invest directly in Ether by purchasing coins. Offers may be subject to change without notice. When more people hold Ethereum for a more extended period, it suggests that they believe in its long-term value and potential. Ethereum's high gas fees. Even Goldman Sachs recently released a report stating that due to an upcoming upgrade, Ethereum could overtake Bitcoin as an investment asset. For the upcoming trading day on Thursday, 2nd we expect Grayscale Ethereum Trust (ETH) to open at $7.37, and during the day (based on 14 day Average True Range), to move between $6.80 and $7.78, which gives a possible trading interval of +/-$0.486 (+/-6.67%) up or down from last closing price. After that -- no more!