Is Ethereum (ETH) a Good Investment in 2020?
Ethereum is the most second-most largest cryptocurrency by market capitalization, and hence it needs no formal introduction. Gradually, moving towards gaining a prominent share in the market Ethereum is likely to overtake Bitcoin in the coming years.
But is Ethereum worth investing in 2020? Is it is a good investment? This is the questions we have heard more than often. So, if you are still wondering whether to buy Ethereum in India or not, this is the post you ought to read.
The competitive Benefits of Ethereum
Before you buy and make an investment in ETH, it is essential that you first understand benefits ethereum as a cryptocurrency and platform provide you.
Founded by Russian-Canadian developer Vitalik Buterin in 2013, Ethereum is a blockchain platform that enables people from all over the world send and receive funds without intervention of the third party. Ethereum is the first-ever smart contract platform facilitating the creation of decentralized applications.
However, the platform became operational in 2015 and ever since it has led to the creation of 1853 decentralized applications. Most of these applications created have a platform with their own tokens.
Currently, the platform boasts of issuing 170,076 tokens. All of these tokens use ETH on their blockchain for transaction execution. Thus, this is facilitating the surge in demand for ETH, which is a good indicator for interested investors.
So now that you know what potential benefits Ethereum as a cryptocurrency encapsulates, let’s move on to reasons why it could be a good investment option.
Reasons why ETH may be a good investment in 2020
# 1. The main reason that led to ETH‘s incredible success is its ability to run smart contracts. In 2107, June ETH almost swapped places with Bitcoin. The creation of decentralized applications (dApps) will assist businesses to improve their performance. Since these dApps will run on Ethereum thus, it is worth to consider investing in Ethereum.
#2. Ethereum 2.0 Is On the way. This supercomputer will be capable of processing any code efficiently. Moreover, this update will introduce Proof-of-Stake (PoS) consensus algorithm to Ethereum to enable it more energy efficient.
#3. Ethereum futures may attain regulatory approval from CFTC. This could be a game-changer move in the crypto world. Soon, within the next 6 or 12 months, Ethereum is expected to gain regulatory approval from Commodity Futures Trading Commission.
#4. The rise of Decentralized Finance applications (Defi)- this application will enable people to enjoy easy access to financial services like loans and other investments. Moreover, these apps will be decentralized and would be running on smart contracts.
Hence, ethereum is a medium for innovation. But there is still some vulnerability that questions the existence of ETH. If ETH alternatives emerge more reliable than it, likely Ethereum may fall soon.
Overall, investing in ETH entirely depends on your risk-bearing capacity. As cryptocurrencies are highly volatile, there is no exact answer to investing in ETH or not. Although Ethereum has provided incredible returns, past performances do not assure you of a particular cryptocurrency success in future.
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