With the crypto market still largely in a bearish state and prices being at the lowest in the past year or so, many have turned their heads towards a possible large investment into crypto again. One of the many cryptocurrencies that have piqued the interest of many is Ether, having taken a large blow with prices dropping from their all-time high in November 2021.
So, is it worth investing in Ether right now? Well, investing in Ether would also mean investing in Ethereum, and there are many reasons why this may be a good move for you right now.
What Is Ethereum And Why Should Ether Be Invested In?
Ethereum and Ether (ETH) are often confused with one another, but they are two completely separate things.
Ethereum is an open-end software run on blockchain technology. Blockchain technology is one of the newest technologies to have risen in the 21st century due to the many possibilities that it provides in the data industry.
Blockchains are a complex technology, but to put it simply, they are a database of digital ledgers that are distributed across an entire network. However, what makes blockchains such a desirable technology is that these distributed ledgers are able to store all sorts of data and more importantly they are identical.
Ethereum makes use of this blockchain technology in order to provide a decentralised platform for all sorts of services.
Ether on the other hand is a cryptocurrency, with which many people will be familiar. These digital currencies are tokens with real market value and are a replacement for fiat money.
Now, what makes ether a no-brainer when it comes to investment is due to its relationship with Ethereum. In order for Ethereum to be able to be run, there has to be a resource used to facilitate the activity across the Ethereum network.
In the real world, business is done through an exchange of assets, most commonly fiat money. However, in the digital world, specifically Ethereum, business is conducted with Ether being a medium of exchange. Hence, the value of Ethereum is largely tied to how well Ethereum does as a discrete software platform. This is why Ether may be a good investment right now with the market in a bearish state.
What Are The Reasons To Own Ether Right Now?
As mentioned above, Ether is largely tied to Ethereum, which is the main reason an investment will be a good idea. Ethereum is by far the largest crypto platform run on blockchain technology right now due to its wide range of applications. The demand for its services creates a demand for Ether, its native crypto tokens, despite the unstable market environment.
Investing in Ether isn’t just simply investing in a crypto coin, rather, it also means banking your chances on Ethereum. This is the reason why analysts believe that Ether can appreciate in value in the long term.
One of the key factors that make Ether a good investment is the potential that Ethereum has, and one of these potentials comes in the form of Ethereum 2.0. Ethereum 2.0 is said to be the future of the already impressive Ethereum platform, with more focus placed on energy efficiency in the crypto industry and crypto staking.
However, even right now, what Ethereum can provide should be a good enough reason as to why it may be the right move to own Ether right now. Blockchain technology is still in its early stages, and the potential for future uses is as high as ever. As of now, blockchain technology is used for all sorts of applications such as financial transactions, smart contracts, and even running decentralised apps on its network.
The prospect of a network where business can be held without the interference of third parties such as banks and lawyers has allowed Ethereum to reach the level of popularity it has today. This popularity will only increase as blockchain technology advances.
Is Ether A Good Investment With The Current State Of The Market?
The current state of the market may deter many from making a huge investment. However, what makes Ether a worthwhile investment is what it has that other crypto coins do not, Ethereum.
There is a lot of promise with Ethereum, mainly due to decentralisation and diversification of use. Ethereum provides a potential that is only capped by human ingenuity, and there are many opportunities for it to grow further. This would only yield positive news for Ether down the road.
Furthermore, compared to the likes of some of the most popular cryptocurrencies such as Bitcoin, there is no lifetime cap for how many coins can exist at any one time.
How Has Ether’s Price Changed Since It Came Out?
Ether was publicly listed in July 2015, and was traded for less than 1 USD. It steadily gained popularity within the crypto market over the next few years and in January 2018, it hit a peak of around 1.3k USD.
However, the market soon turned bearish and prices saw a huge drop to the 100 USD region in March 2020. This is very similar to what the market is experiencing today with prices dropping to more than half of what it was at the November 2021 all-time high.
However, this is where there may be a silver lining to all this. Following the bearish market in 2018, Ether’s prices saw a steady increase with aggressive expenditure into the market. Unlike traditional assets such as stocks and property, the crypto market is one that is much more volatile and prone to ups and downs or fluctuating bull and bear markets in a short period of time.
This makes Ether a possible investment right now. With prices being this low, and the future potential of Ethereum giving cause for a potential bull market in the future, one can look to make huge profits in the future.
An investment, especially in the crypto market, is a huge decision to make. Ether has proven to be a great investment in the past, and investment right now would make the most sense given the low prices and promising future of blockchain technology. However, no investment, no matter how good it looks, comes with no risk. Making an informed decision is your best way of minimising your losses and bringing home profits when the time is right.