12 Reasons to Invest in Ethereum 2021
Is it a good idea to invest in Ethereum?
What does this cryptocurrency have that many see as the most powerful competitor to Bitcoin? Will it be able to surpass the crypto queen?
Will it be a good investment?
We will solve these and many other questions in this guide on this popular cryptocurrency.
I anticipate that there are many who bet on this cryptocurrency but there are also many who say that it will not go too far.
Of course, you will not think that everything is a bed of roses when it comes to investing in Ethereum. No investment is risk-free and neither is this currency.
I'm going to cut to the chase and list the reasons why it is a good idea to invest in Ethereum and the reasons why it may not be such a good idea.
Advantages and disadvantages of investing in Ethereum
1 It's more than a cryptocurrency
Ethereum is not a cryptocurrency itself (Ether is the token that is used in it for exchanges), but a platform based on blockchain technology that allows to develop decentralized applications that use Blockchain in it, so its potential lies in its power as a kind of structure based on the programming of a possible virtual world. Bitcoin, on the other hand, is more of a pure currency.
2 Smart contracts
It can be used to create Smart Contracts with which its potential is enormous. It seems increasingly clear that the future of crypto is going to be related to this type of contract.
3 He's behind DeFi
This is one of the developments that are called to dominate the future of global finance and especially related to the virtual world. Many experts say that DeFi will eventually replace traditional centralized finance. At Harvard they are thinking that this may be the basis of future finances.
4 The NFT market depends on Ethereum
Another of the trendy markets for cryptocurrencies and everything related to the Blockchain. Stories like those of cryptopunks and other platforms have meant that these tokens have risen to fame.
These Non-Fungible Tokens that are based on smart contracts seem to be leading the way towards a new way of proving ownership of things, something that apparently can also be applied to physical goods, not just virtual ones.
Why is Ethereum important here?
Because a good part of the most important NFTs are built with the technology of this crypto.
5 The World Economic Forum bets on tokenization
The controversial WEF has published that it is expected that by 2025-2027 10% of the world's GDP will be tokenized, that is, it works under blockchain technology transactions. And what is the most powerful blockchain technology in the token market? Ethereum.
6 It allows to diversify in cryptos
Many investors are nervous about investing in only one or a few assets.
Bitcoin is the cryptocurrency that attracts the most interest and investment, but many of the investors who enter this market look for other assets where they can maintain a more diversified profile. In crypto the best asset to get into after Bitcoin is the
https://www.blockchainx.tech/erc20-token-development development of ethereum, so any crypto portfolio that seeks to comply with this concept would do well to acquire this cryptocurrency in it.
7 It is a remedy against censorship
As it is a decentralized technology on the Internet, it is capable of resisting censorship attempts by the authorities.
For example, suppose a government wants to block access to a website in a country; something that is perfectly possible. What is not possible is that government eliminates a "transaction" recorded in the blockchain. In this way, a publication in the Ethereum system is recorded on a decentralized computer network to which the government has access. It is true that we can argue that the government can make it impossible for you to have a computer and therefore the above is of no use, but there we would already be in a more complicated form of dictatorship.
8 It has strong support from the institutional and financial world
Every year that passes, more large institutions are putting money into the cryptocurrency and therefore building positions in the Ethereum ecosystem.
For example, a software company developing Ethereum-based infrastructure received $ 65 million from UBS, Mastercard, and JP Morgan Chase. And this looks like it is only the beginning of increasing investments in this market.
Why is Ethereum not a good investment?
As I mentioned, not everything is easy for Ethereum. Don't think this was going to be the perfect asset, with no weak points. That asset, I'm afraid, doesn't exist.
9 Governments will end up banning cryptocurrencies
There are more and more rumors on the net and veiled threats from states about the problems posed by the cryptocurrency market and how they pose a danger to the world of central banks' FIAT currencies.
Many fear that the same government of the United States will end up banning cryptocurrency transactions and that this could affect Ethereum, in which case it is possible that the price would have big drops.
Undoubtedly, the situation is uncertain and explosive for the next few years.
10 In the end only Bitcoin will remain
In the world of cryptocurrencies, for example among the influencers of the sector on Twitter, there are some who say that in the end most cryptocurrencies will go to zero and that only Bitcoin is worth it. They claim that there is no room for many cryptocurrencies in a global financial system that will have to be based on the strongest one, which in this case would be Bitcoin.
This point of view seems quite dramatic but we cannot rule out anything in a world as wild and unpredictable as cryptocurrencies.
11 Important and growing competition in DAPPs
There are certain sectors and sub-sectors of the world of tokenization and DAPPs, where there are other more dominant cryptocurrencies that have eaten the ground from development of Ethereum.
It seems that the DAPP markets are strongly dominated by the cryptocurrencies NEO and Tron, with Ethereum remaining with only 3 of the first 50. In the gaming and casino niches the above cryptocurrencies are clearly dominant.
12 Particular security issues
The episode of years ago with the separation of Ethereum and Ethereum Classic after a historical hack is still remembered by some, so it is always recommended to exercise caution in these blockchain paradigms.
It is true that since then Ethereum has had an impeccable record of stability and has proven to be very difficult to hack. Hopefully it will continue like this in the future.
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