Thanks to the rapid growth of Ethereum, a lot of paupers have transformed into millionaires. However, despite the digital currency’s skyrocketing value, not many people understand why Ethereum can be such a viable investment. So, in this blog, we cover some key reasons that you should consider adding Ethereum to your investment portfolio.
Reasons to Invest in Ethereum
1. The second-largest digital currency
If you think that crypto rankings do not matter, think again. You can have the most amazing project, but you will find it almost impossible to attain traction if it is not noticeable to people.
Ethereum, having the second-largest market capitalization, does not struggle to get itself noticed. Every newbie entering the crypto world will be able to notice Ethereum, right alongside the famed Bitcoin, as soon as they decide to assess the crypto market.
Ethereum’s ranking has played a key role in attracting liquidity and, consequently, increasing demand for the coin. As investors and traders continue to become more aware about crypto, Ethereum might well enjoy consistent boosts in price and value over the years to come. For better insight, you can visit the official website of the profit Edge
2. High price potential
At the moment, Ethereum is being traded at approximately $2,700. Even though this amount might appear quite high, you must not let it lure you into thinking that Ethereum has reached its potential. The increased global crypto uptake means that this Ethereum can still grow significantly.
Current and potential investors now consider digital currencies as viable investment substitutes to conventional options, such as bonds, stocks, or real estate. This shift, naturally, is good for cryptos, especially those with powerful fundamentals like Bitcoin or Ethereum. If we go by the increasing trend in Ethereum uptake, you could even see Ethereum going beyond $10,000.
3. Increased institutional adoption
The last few years have seen Ethereum enjoy increasing adoption – a trend that is going to continue over the short and long terms. If you need evidence of this prediction, look no further than the EEA (Enterprise Ethereum Alliance).
The EEA comprises a few of the world’s largest institutions, such as JP Morgan. With decentralization continuing to grow, these institutions can build further on Ethereum, further driving up the ETH demand. This alliance is one of the biggest factors in the expected future growth of Ethereum, and a massive reason for crypto investors to go bullish with this digital currency.
4. Ethereum 2.0 – a game-changer
The 2.0 version of the crypto is bound to take it to unmatched heights in the long term. Essentially, with Ethereum 2.0, the coin will be moving towards a PoS (Proof-of-Stake) model of blockchain, ditching the PoW (Proof-of-Work) system on which it previously operated.
The absence of miners means that the increasing gas costs, which have been a major challenge for cryptocurrencies, shall no longer exist once a full transaction has been made. In addition, the POS shift will mean that Ethereum becomes more-environmentally friendly, which will help the currency to attract more environmentally conscious traders and investors – particularly institutional ones.
5. Media hype
Media attention is a significant factor in the price movement for any cryptocurrency. Any project that makes it to the news channels for the right reasons often witnesses a jump in price.
Currently, Ethereum seems to be luring every bit of right press. Some huge names within the cryptocurrency space are touting Ethereum to outdo Bitcoin in terms of both gains AND market capitalization. Naturally, such optimistic press is bound to create a positive impact on the long-term value of Ethereum.
We can go on and on about the benefits of investing in Ethereum – or we could stop right now and allow you to get going on your highly-rewarding Ethereum investing journey.