If you invested US $5,000 in Ethereum when 2021 commenced, the value would have grown and surpassed US $22,360 by the end of August, 2021. Unlike Bitcoin, which is primarily focused on monetary transfer, Ethereum has broken the boundaries, and its decentralized infrastructure is making it easy to do almost anything. It has won the tag, “cyber-organism,” where advanced decentralized marketplaces and other digital infrastructures are getting nurtured to usher in the new era in digital space.
Looking at ETH’s price on the market, one thing is clear, the anticipated “flippening” when Ethereum’s market cap will race past the Bitcoin’s is likely to happen faster than expected. Keep reading to understand the potential of Ethereum and why you should buy ETH right away.
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Three Reasons Why You Should Buy Ethereum
Ethereum is at the heart of shaping the new decentralized economy and you can reap huge benefits being part of it. You become part of the new technology driver and here are some of the main reasons:
The Rapid Explosion of Non-Fungible Tokens (NFTs)
NFTs are certificates that demonstrate ownership of important digital and physical assets, from music to artwork. The tokens are traded on different online marketplaces, and they are expected to continue on an upward trend in the coming months. One of the most quoted NFT is the first tweet on Twitter, which Dorsey sold for US $2.9 million.
Having some ETH will make it easy for you to take advantage of NFTs. Ethereum generates unique IDs for non-fungible tokens to guarantee their uniqueness. So, if you have something unique, whether it is a piece of art, video, or artifact, it can be tokenized, and the NFT sold on the marketplace.
Taking Advantage of Staking on DeFi
Over the last year, decentralized finance (DeFi) platforms have exploded, with assets that they hold, hitting US $150 billion in mid-2021. The potential of DeFi is expected to continue growing and the demand is growing rapidly because of the demand. One particular DeFi service that you are sure of enjoying by having some ETH in your wallet is staking.
Crypto staking is the process of locking your crypto coins to help secure the respective blockchain network and confirm transactions. In return, you will be rewarded with a section of the transaction charges. Because you are not selling your ETH, staking them could mean three things:
● You get a reward for securing and confirming transactions
● Possible value gain if the price of ETH goes up
● You help to secure and advance the Ethereum blockchain network
Ethereum is Shifting to Proof of Stake (PoS) Protocol
When Ethereum was started, it was designed to use proof-of-work (POW) consensus protocol, just like Bitcoin. This protocol utilizes cryptography, where miners who want to confirm transactions have to solve complex mathematical problems, and the first to get it right mines the next block. The main issues of this protocol are that it requires a lot of electricity and the transactions that can be handled are not easily scalable.
By shifting from POW and adopting POS protocol, Ethereum will have conquered the main challenges to a lot of blockchains, such as Bitcoin and Bitcoin Cash. With POS, transactions will be completed faster and more cost-effectively. By overcoming these problems, plus its creative features, from smart contracts to tokenization, Ethereum is expected to be the next big thing in the crypto world.
From the discussion, we can conclude that Ethereum is the blockchain to beat and you should not be left behind to invest in it. Indeed, the value of ETH is expected to shoot up when the blockchain finally migrates to POS. Therefore, this might be an excellent time to join. Reach Hi to learn how to buy the ETH and take advantage of the blockchain securely.