One of the key differences between Ethereum and other cryptocurrencies is the fact it’s accepted by banks and the government. Moreover, there are an increasing number of industries using the Ethereum blockchain, contributing to the development of products and services.
The volatility and vulnerability of cryptocurrencies is seen on exchanges on a daily basis. Prices can plunge and surge as a result of celebrity tweets, regulatory changes, investment plans, and the list goes on.
It’s difficult to confidently advise someone to invest their savings into crypto, as government regulations are constantly looming. However, Ether offers much more to society than any other coin currently in circulation.
Why is Ethereum a good investment?
One of the key things about Ethereum is it’s utility in society. As an open-source blockchain, smart contracts are being implemented across various industries. Companies are able to use predefined requirements and implement them into their businesses.
Moreover, we’re seeing a variety of major investors make encouraging moves regarding Ethereum. To name a few, the European Investment Bank, Benzinga, Goldman Sachs, and Microsoft, have all utilized the blockchain for products.
The blockchain is multi-faceted and has proven to be incredibly useful for financial institutions. Fintech is one of the fastest growing industries and holds influence in society, so if Ethereum receives the recognition and approval of big companies we can expect it to be here to stay.
Another thing about Ethereum is the fact it’s non-threatening to the current financial infrastructure. Take Bitcoin (BTC) for example, the insanely high price, which is still rising, is a cause for concern for the financial world. The public are able to use BTC as a means of payment for everyday purchases and we’re even seeing companies like Tesla offering BTC as a payment option for its products.
The Ethereum platform doesn’t threaten governments’ control over the movement of money, nor does it affect the levying of taxes. This is significant and another reason why Ethereum is likely to thrive as other currencies fall.
The Future of Crypto
While things look very positive so far in 2021, recent talk of regulation is a scary prospect and something crypto enthusiasts are acutely aware of at the moment. Take the surging price of Dogecoin (DOGE), this is something that governments will look at and quickly realise needs regulating.
Once governments begin regulating, there’s no guessing how far that regulation will go. Bitcoin is the currency that many other currencies prices rely on, but the levels of volatility associated with BTC seem to be leveling out.
Nonetheless, we expect that U.S. federal governments will regulate the usage of Bitcoin, making it difficult for users to pay for goods and services with their digital assets. This is less likely to affect Ethereum, as it’s blockchain is already used as a utility to support companies and is unlikely to be banned.
Having said all this, Cryptocurrencies are receiving almost global acceptance from major companies and established financial banks. The latest in a long line of investment banks was U.S. mega-bank JPMorgan Chase, which plans to offer a crypto asset investment portfolio to clients as of summer 2021.
While the price of Ethereum is rising, it will likely take a hit again. We’ve seen this happen to cryptocurrencies time and time again, but it feels like Ether is here to stay. For those looking to begin investing in crypto, we’d strongly advise taking a look at Ethereum as an option.