Until today, blockchain technology has proven to be limitless. From the launch of Bitcoin in 2009 as an innovative and decentralized payment network, the use of blockchain technology has widened tremendously. There are numerous Decentralized Applications (DApps), Decentralized Exchanges (DEXs), and even Decentralized virtual worlds like Decentraland, that constantly test the limits of blockchain technology.
This programmability was first made possible by Ethereum, being the first blockchain developed that was programmable. Ethereum’s launch also marked the creation of smart contracts. Today, there are many programmable coins, Zilliqa and Elrond just to name a few. Yet, Ethereum is still the king of this side of blockchain technology. Being this programmable, Ethereum is the reason why thousands of developers continuously experiment and try their ideas on blockchain technology.
But what is Ethereum? Why does it hold such value? Should I buy Ethereum? These and many more questions will be talked about throughout this article.
What is Ethereum (ETH)?
First off, let us dive into the fundamentals of Ethereum. This cryptocurrency was founded by a team of five people in 2013. According to Anthony Di Iorio, the founding team of Ethereum consists of Charles Hoskinson, Mihai Alisie, Anthony Di Iorio, Amir Chetrit, and the famous Vitalik Buterin – the world’s youngest crypto billionaire. This team grew again at the beginning of 2014, when Gavin Wood, Joseph Lubin, and Jeffrey Wilcke were added to the team as co-founders. Finally, in July 2015, Ethereum was launched.
Vitalik Buterin claimed that Bitcoin could benefit from other applications, and that is exactly what he provided to the blockchain industry with Ethereum. As stated above, Ethereum is the first blockchain project that provides a platform for developers to build applications. Its platform allows developers to create and publish smart contracts, DApps, and even NFTs. Both, smart contracts and DApps have no central authority, no risk of downtime, and are virtually impossible to hack.
Just as Bitcoin, Ethereum uses the Proof-of-Work (PoW) mechanism to validate transactions and secure its network. The process of securing the network is completely decentralized, meaning that nodes used to secure the network are spread throughout the globe. This makes Ethereum a mineable coin. Every transaction is registered and timestamped in a virtual ledger, making it impossible for anyone to alter the information.
Its native cryptocurrency, ETH, was created with the initial goal of serving as a form of payment for applications built on the Ethereum platform. If we take a look at its tokenomics, ETH has an uncapped maximum supply, meaning that there is no limit to the number of ETHs that are eligible to be produced. This makes ETH an inflationary coin.
Ethereum has continuously had one big problem – gas fees. There have been instances where people tried to execute transactions under $100 and had to pay gas fees higher than $40. With cryptocurrencies claiming to have way lower transaction fees than most financial institutions, this was unacceptable. The founding team of Ethereum promised that this issue will be fixed with the release of Ethereum 2.0. If you want to know in detail what Ethereum is take a look at this guide.
What is Ethereum 2.0?
Ethereum 2.0 is the long-awaited “update” that is set to occur to Ethereum. As mentioned above, Ethereum’s main problem is its gas fees and scalability. For instance, CryptoKitties, a game built on top of the Ethereum blockchain single-handedly affected the speed of transactions on the platform. With Ethereum 2.0, this problem is believed to be solved.
Moreover, since Ethereum uses a Proof-of-Work mechanism to secure its network, tens of thousands of extremely powerful and power-consuming computers are needed to be running 24/7. This makes cryptocurrencies like Ethereum harmful to the environment. One of the reasons many influencers and governments (China in particular) do not support cryptocurrencies is the huge amount of electricity being used to run these networks. Again, Ethereum 2.0 is believed to be a solution to this, migrating from a Proof-of-Work mechanism to a Proof-of-Stake (PoS) one.
What are Non-Fungible Tokens (NFTs)?
Non-Fungible Tokens, also known as NFTs, are tokens that are unique in one way or the other. For example, cryptocurrencies like UNI, KLAY, or OMG, are all fungible tokens, meaning that you can trade one OMG for another OMG since they hold the same value; however, you cannot trade one NFT for another one.
NFTs were firstly only stored on the Ethereum network because they are powered by smart contracts. An NFT can consist of a piece of digital art, an image, a video, or even an audio file.
ETH Price Analysis
According to Coinmarketcap, Ethereum entered the market with a trading value of $0.75 in 2015. Only one week was needed for Ethereum to surpass the $1 milestone, hitting the price of $1.82 by the 14th of August. Its price moved between $0.80 and $1.50 throughout the remainder of 2015. The beginning of 2016 marked considerable growth for the cryptocurrency, which reached a trading value of $2.30 by the end of January. However, its growth did not stop there; Ethereum continued its rally, reaching the price of $13 by mid-March. After stabilizing for a bit, Ethereum surpassed yet another milestone, hitting the price of $20 by the 16th of June. The biggest altcoin closed the year 2015 down with a price of $7.96.
The upcoming year was the beginning of the real growth that Ethereum experienced throughout the years. Ethereum entered the year 2017 with a price of $8 and reached the price of $160 (+1990%) mid-May. This increase set a new all-time high for this cryptocurrency. Yet, when everyone thought Ethereum is done for the year, its price skyrocketed to $1148 at the beginning of January 2018, setting yet another all-time high. Its price declined throughout the following years, hitting prices as low as $110.
After 3 years, we saw Ethereum at the same spot, reaching a trading value of $1225 by the 8th of January 2021. This time, ETH was just getting started. After just one month, this cryptocurrency doubled its price, trading as high as $2009 per coin. In May, Ethereum set its current all-time high, trading at $4262 per coin – 556352% above its all-time low of $0.42.
At the time of writing, Ethereum is trading at $2345 with a 24-hour trading volume of $24 billion. This cryptocurrency is the second largest one in this industry, with a market capitalization of $273 billion.
What Will Ethereum be Worth in 2021?
Here at Crypto Academy, we predict that in 2021 if Eth 2.0 is launched and if the market gets bullish patterns again then we can see Ethereum reach the $12,000 mark and even surpass it.
What Will Ethereum be Worth in 2022?
It is known that the ambitions of Ethereum are wider than those of Bitcoin. Since Ethereum wants to provide a platform for a wide range of applications to be built on, it even has more potential. Cryptocurrency Youtuber Jamie Tree believes that it is very probable for Ethereum to surpass Bitcoin in terms of market capitalization throughout the next five years. He proceeds by claiming that Ethereum is likely to reach a price of $20,000 sometime during the next 12 months which means that it could be the first part of 2022.
Will Ethereum Reach $10,000?
A cryptocurrency enthusiast known as CryptoKaleo in Twitter predicts that Ethereum might break above $10,000 by the end of 2021. This would put Ethereum around $6000 above its current all-time high.
My predictions for the second half of 2021:
– $BTC enters 6 figure price discovery
– $ETH breaks above $10K
– We see one more major alt season
– More institutional / government adoption
– More institutional / government FUD
– Cryptunez gets a girlfriend
– Bears remain bearish
— K A L E O (@CryptoKaleo) June 17, 2021
According to Coinpriceforecast, a crypto price prediction website, 1 Ethereum might end this year with a price of $3988, just below its current all-time high. They claim that Ethereum might surpass the $10,000 mark by the end of 2023.
Will Ethereum Reach $100,000?
Most predictions regarding Ethereum are bullish because people know the potential that this cryptocurrency has. Sarah Bergstrand, BitBull’s Capital chief operating officer, states that Ethereum may skyrocket to the price of $100,000 by the end of 2025.
Conclusion – Should You Buy Ethereum in 2021?
When it comes to whether you should buy Ethereum in 2021, investing in Ethereum at this time might be a good investment choice. With Ethereum 2.0 just around the corner, most crypto enthusiasts are waiting for the price of Ethereum to skyrocket once again this year.
Ethereum has introduced something new to this industry, giving it a lifetime spot in the market. Nobody is sure if or when Ethereum will reach a certain trading value, but most people agree that it is highly unlikely for this specific cryptocurrency to die out. Ethereum might be one of the safest investments in the volatile world of cryptocurrencies, and if the predictions we presented above are correct, Ethereum may even serve as a very fruitful investment to many.
Our crypto trading experts here at Crypto Academy suggest that Ethereum is one of the best assets in the crypto world, given its potential. Ethereum is without a doubt one of the best investments anyone can make in crypto in 2021.
How To Buy Ethereum (ETH) in 2021?
You can invest in Ethereum in three easy steps;
Step 1: Open an Account on a Cryptocurrency Exchange
- If you want to obtain Ethereum directly from somebody who owns Ethereum through Peer-to-Peer (P2P) transactions, you must open an Ethereum wallet. Afterward, you will use that address as the destination of the Ethereum sent from the seller.
- However, if you are interested in buying Ethereum using a crypto exchange, you are obligated to open an account on the exchange of your choice and verify it.
Step 2: Fund Your Account
Now, you have to choose your payment method. Payment methods are different in each cryptocurrency exchange. The most common payment methods are paying directly through a credit/debit card or using a bank transfer. Next, find the market pair of your preference – it must include ETH. Some examples are USD/ETH, EUR/ETH, USDT/ETH, BUSD/ETH, USDC/ETH, etc.
Step 3: Buy Ethereum
To wrap it up, select the amount of Ethereum you want to buy and press the “BUY” button. After you become an Ethereum owner, you can store your ETH on a hot wallet or a cold wallet. We recommend using a cold wallet since they are way safer and are the better option for long-term holdings. Check out Top 9 Cryptocurrency Wallets in 2021.
Also read: Should I Invest in Bitcoin in 2021?
Frequently Asked Questions (FAQ)
Where to buy Ethereum?
Being the second biggest cryptocurrency in the market, Ethereum is available in most crypto exchanges. At the time of writing, the top platforms for buying Ethereum are Binance, Coinbase, Kraken, Gemini, Bitfinex, and Bitstamp.
Bitcoin or Ethereum long-term?
As we mentioned above, Ethereum has wider ambitions for the future, giving it more potential than Bitcoin. Additionally, Ethereum’s market dominance has been growing tremendously during the last months. In September 2020, 1 Bitcoin was traded for 30 Ethereum; at the time of writing, 1 Bitcoin is worth 15 Ethereum, meaning that Ethereum is slowly catching up.
Should I buy Ethereum 2021?
According to many cryptocurrency experts and prediction websites, Ethereum may prove to be a great investment for you in the future. Nevertheless, always do your own research before investing in any cryptocurrency.
- Ethereum made it possible for developers to experiment and create on top of blockchain technology by providing programmability through its platform – resulting in it being called “programmable money” by many.
- Ethereum was created in 2013 and launched in 2015. Its main goal was to provide the blockchain industry with all kinds of decentralized applications.
- The current problems of Ethereum are gas fees and scalability. These are said to be overcome with the launch of Ethereum 2.0.
- Ethereum 2.0 is the long-awaited update of Ethereum, solving some major problems on the Ethereum network and migrating its network from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS).
- Non-fungible tokens (NFTs) are tokens that are unique. This makes them non-tradable with one another. For example, you can trade 1 Bitcoin for 1 Bitcoin because Bitcoin is fungible, however, you cannot trade 1 NFT for 1 NFT because it is non-fungible.
- Ethereum is predicted to hit the price between $10,000-$20,000 sometime during the upcoming 12 months.
- According to many crypto experts, influencers, and prediction websites, investing in Ethereum in 2021 might prove beneficial for you in the long run.