It is evident across the board that Ethereum has had an interesting year so far in 2021, with its market price outpacing Bitcoin with a 177% in the last year. Ethereum’s price has increased by 700% over the last year, hence making it use of the most expensive cryptocurrencies in the crypto space.
It could be recalled that it has a all-time high of over 4,800 per token in November, and it is now grappling to have stability after suffering some rough course in the past weeks.
Following this Ethereum market report, now is the time if you are mulling on investing in Ethereum. With an investment in Ethereum, you will be buying it at one of its highest prices in the year.
What Is The Direction Of Ethereum Towards 2022?
There might be a posed difficulty in clearly predicting how any stock or cryptocurrency would thrive in the future, it is sometimes safe to not necessarily place predictions what the future holds. But at the slight gloom of cryptocurrency in 2021, there is a silver lining to why cryptocurrency could do better in 2022.
Currently, Ethereum is working with a paradigm shift towards an updated version, Ethereum 2.0, with this development expected to be completed by 2022. This latest upgrade is characterized by a transition from a proof of work (PoW) system to a proof of stake (PoS) system. This development will further make the coin crypto faster and environment-friendly.
On the PoW system, crypto miners could verify transactions with thee high-powered computers. The process is considerably slow while it consumes a large amount of energy. But using the PoS system, users who have a stake containing Ethereum can validate transactions. This is a rapid process that requires about 99.95% less energy compared to a PoW system.
It is of high belief that Ethereum will have a significant comparative advantage over other cryptocurrencies upon the completion of the Ethereum 2.0 rollout.
Is Ethereum Good For You?
2022 will be a great year for Ethereum and it’s a smart move to invest in it now. Next year would be a big year for Ethereum, and investing now may be a smart move. However, it should be noted that every cryptocurrency is not suitable for investment.
Ethereum appears promising with its innovations and market value, albeit it is not a guarantee for long time performance. This fact can be owed to the volatile nature of cryptocurrency and stricter regulations being put in place by authorities to keep its operations under watch.
Therefore, puputtingnto consideration your tolerance for risk while investing with money you can afford to lose is of great importance. Also, do not opt for Ethereum investment as a plan to get rich overnight, because it is a hold for a long-term investment.
Ethereum has enjoyed a phenomenal year, but its best may not be here already. So invest now if you have not done that. But ensure you are ready to deal with the risks that come with it. There seems to be bright future in stock for Ethereum, but the guarantee is limited.