Since its launch in 2015, Ethereum has only grown in popularity and the cryptocurrency Ether (ETH) is now all the way up to $2,930. Experts predict that it could even grow in value by up to 400% over the course of 2022.
So, just why is Ethereum so popular and what are the advantages of this blockchain and cryptocurrency compared to others, such as Bitcoin, the only crypto that is more popular than Ethereum on the market? Here, in this guide to Ethereum investment, we take a look.
What are the pros of investing in Ethereum?
According to Analytics Insight, there are three main advantages to opting for Ethereum. These are as follows:
- Lower inflation risk: Inflation is a big talking point right now and Ethereum has a build-in strategy for this that isn’t as susceptible to tampering, reducing the risk of the value of your crypto decreasing.
- Liquidity: One of the main reasons people are attracted to Ethereum is that it’s one of the most liquid cryptocurrencies, so you can quickly and easily exchange it.
- Volatility: As Analytics Insight explain, the volatility in the Ethereum marketplace could actually be a positive since smart investors can identity patterns and profit from the volatility.
What are the cons of investing in Ethereum?
In a report from Analytics Insight, they also highlight three main cons of Ethereum, which are:
- Scaling Issues: Since Ethereum serves as a ledger, there can be some breakdowns and hacks, so its scaling issues are a real concern.
- Complicated programming language: Ethereum’s native language can be difficult to understand and there aren’t many resources to help people learn it.
- Volatility: As much as volatility can be an advantage for some, that makes Ethereum a risk for others. The price of Ether (ETH) has fluctuated a lot in the past and may continue to do so.