Should You Invest In Ethereum - San Francisco Tribe

To start this post: Should You Invest In Ethereum, it is important to know that nothing in this post can or should be considered financial advice or consulting. Simply one person’s opinion on Ethereum and the future of digital assets. With that being said, let’s dive into it.

There are so many things to say about Ethereum. We are going to try and focus on the simple question of, should you invest your hard earned money into it? Let’s take a quick moment to review what Ethereum is.

What Is Ethereum

Ethereum is a blockchain based platform that enables decentralized applications to be run on top of it as well as tokens to be generated and sold though it. Essentially, it is a platform based cryptocurrency with goals of becoming a scalable and fundamental piece of the crypto industry through future proof of staking consensus.

It was developed by Vitalik Buterin when World of War craft nerfed his main character. He was so enraged that he decided to build a new technological empire of the future. This is not the real reason why, but happens to be something that he jokes about. Regardless, Vitalik is a brilliant man and still in his early 20’s.

How Does Ethereum Compare

With respect to other projects in the crypto space, Ethereum still stands tall above most of the crowd. Ethereum has essentially led the way since 2014 in advancement, market moving and fundamentals. Of course, there are multiple projects now on the market that can basically do what Ethereum can do.

What is the difference then?

Ethereum has one huge “advantage”, first mover advantage. Simply just as Google was one of the first companies to come out on top in the dot com era, so has Ethereum emerged on top and ahead of the crowd before any other project like it did.

This means Ethereum has the largest following, fan base, exposure, recognition, developer base, original syntax (Solidity) and mining pool. Ethereum is right behind Bitcoin in fame and use-cases. It is a safe bet that any exchange you decided to trade on will have at least these two trading pairs, Bitcoin and Ethereum.

Speculators once thought that Ethereum would be the project to finally overtake father Bitcoin. It still could in the long run, but for now I think second place suits a project of its stature.

Should I Invest In Ethereum

Back to the main topic, investing. There are several reasons why I believe Ethereum is not only a stable investment, but a wise one.

It has the largest following and is closely resembling companies like Microsoft in its early days
Extremely liquidable asset only out preformed by Bitcoin itself. Almost every exchange will have pairings to Ethereum
Solid road map that extends out for multiple years
Amazing community with multiple sites dedicated to spreading the word, teaching Solidity, encouraging development and hack-a-thons around the globe
In 2019 Ethereum will switch to staking. This means that in order to verify transactions on the chain, “miners” will have to stake a minimum 32 Ethereum in a wallet or in a pool and essecntially remove those 32 Ethereum from the market. Basically this cuts the market supply and demand increases as investors rush to buy the minimum number of Ethereum in order to stake and receive rewards or passive income from their asset.
Most ICOs are conducted in Ethereum investments although this will mostly likely continue to fade as a market norm
Most importantly, Ethereum has first mover advantage. I know this was mentioned above, but it can not be stressed enough. The Ethereum community is absolutely massive, global and above all brilliant. Some of the brightest minds are currently developing and pushing Ethereum to new heights never before seen.

What If All of That Does Not Matter?

At the end of the day, Ethereum is still one of the most widely used means of exchange across the entire crypto industry. Just on the liquidity and use-cases alone, Ethereum would be considered a decent investment. Now add to it a global community of dedicated developers and you have one sweet investment opportunity.

Ethereum Price Prediction

In the last bullrun of late 2017 and early 2018, Ethereum easily broke the $1,000 dollar levels per coin reaching heights of almost $1,400 a coin. It is not far-fetched to expect new heights the next bull run that should happen between 2021 and 2023.

In anticipation to this bullrun, we can predict that crypto market should grow into the trillion dollar levels. Basic analysis leads to the market easily breaking the $1 trillion dollar mark and possibly reaching as high as $2 trillion.

Where will Ethereum be in the next bullrun?

Of course, this is assuming several things. Ethereum maintains the second spot position, preforms similar to historical trends and continues to be a industry wide norm. Anything is possible and Ethereum could potentially fall off the spot light. Lets look at some of the other projects looking to take Ethereum’s crown.

Ethereum could break the $2,000 dollar levels and possibly hover close to $3,000 a coin. Historically, Ethereum hovers between 7% – 19% of the over all market cap of cryptocurrency. During the next bullrun this should stretch closer to the higher percent of 17-19% and give Ethereum a value of approximately $1,700 to $3,100.

What Are Ethereum’s competitors

Ethereum changed the cryptocurrency scene when it was launched. Since its inception, multiple projects have come out offering similar features and hoping to be the next big thing. A few notable mentions are:

Cardano vs. Ethereum

A function based cryptocurrency with a focus on formal verification, scalability and social impact. Lead by a co-creator of Ethereum, Charles Hoskinson, Cardano will soon launch its main-net, proof of staking and a proprietary consensus method. A lot of investors have extremely high hopes and expectations for this project which can be a double edge sword.

Cardano is fundamentally different from Ethereum down to the core programming language. Both projects do offer similar services, but cater and focus on different markets in a sense. Cardano will probably not be a direct competitor, but an alternative thought process all together.

EOS vs. Ethereum

EOS is a spitting image of Ethereum. With the first mover advantage of launching proof of stake before Ethereum, EOS has amassed a huge following and investor pool in its own right. It does lack the liquidity-pairings that Ethereum boasts, but nevertheless it is a formidable opponent. Clearly the world is large enough for two projects like Ethereum and we think EOS will simply be the Bill Gates to Tim cook if that comparison can be made.

Both Projects seek to provide proof of stake, token ready platform, virtual machines and enterprise ready solutions.

Hedging In Ethereum

If you are a risk-adverse investor, then clearly you want to invest in more than just Bitcoin. Ethereum could be considered a hedge against the currency based digital assets.

Although it is used as a mean of exchange, Ethereum leverages many use-cases that most digital currencies do not have. Holding Ethereum is similar to diversifying your portfolio in digital assets.

Ethereum long-term prediction

Clearly, I believe Ethereum is a stable bet. It has withstood the test of several years in the crypto market and maintained a top position throughout most of its tradable history. Buying a few Ethereum is simple to do on Coinbase and could lead to a nice ROI down the line. There are a few competitors that could start to eat away at Ethereum’s position, but overall it is safe to say that Ethereum is the second most secure asset in the entire crypto scene. Bitcoin being number of obviously.

When buying Ethereum, the future needs to be in mind. Ethereum and Bitcoin are not assets to buy and flip every month. The best ROI from these assets are from buying and holding for 3-5 years. These top market assets take years to fully mature and that is the beauty of buying a top market asset. Most of the fear of the asset going to $0 is removed because of investor sentiment for these projects.

Projects like Ethereum and Bitcoin will never reach $0 because there will always be someone willing to scoop them up at certain price levels.

Ethereum is a Good Investment

In conclusion, we can safely say that Ethereum is a good investment. This is based off of historical trends, amazing liquidity, ground-breaking technology, investor sentiment and future developments. It checks off all of the boxes that an investor should look for and then some if you are looking to diversify in the crypto market.

As always do you own research and learn about Bitcoin, Ethereum, ripple and some of the other top assets. Then make a choice for yourself which digital asset suits you, if any. At the end of the day if you can’t explain what Bitcoin is to your mom then you probably should not invest. Knowledge is power.