A New Reason to Consider High-Flying Ethereum Is Emerging

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The cryptocurrency known as Ether, which transacts on the Ethereum blockchain, is the second-largest in the space after Bitcoin.

While Ether has been on a tear of its own of late, outperforming Bitcoin along the way, that run may not be over. In fact, it may be getting some assistance in the form of reduced Ether supply.

“Ethereum blockchain developers approved one of the biggest changes to the network since its inception in 2015, a shift that could spur even bigger gains in the price of its native cryptocurrency Ether,” reports Matthew Leising for Bloomberg.

Examining Ethereum

“The move will reduce the amount of outstanding Ether by destroying some of the tokens every time it’s used to fuel transactions on the world’s most-used blockchain,” according to Bloomberg. “Known as EIP 1559, the change solves a current problem: Ethereum users can only estimate how much Ether will be needed for transactions to be processed, a guessing game that has spawned sites such as ETH Gas Station to help people know how much to pay. EIP 1559, which will become part of an upgrade in July or August, will embed an average price into the network itself making the guessing game obsolete.”

Ethereum is an open-source, blockchain-based distributed computing platform that can support smart contract functionality.

That’s a complicated way of saying that Ethereum not only makes a cryptocurrency called Ether possible, but can also support the launch of new cryptocurrencies and make it possible to crowdsource funding for new projects.

The simplest way to think about Ethereum is to compare it to something you probably use every day: your mobile phone. If you have an Android or iOS phone, you have apps that can perform a wide variety of functions from ordering an Uber to mapping a route across town.

What gives Ethereum an edge against Bitcoin is its implementation of smart contracts, which allows developers to run decentralized applications, or dapps, directly on the Ethereum blockchain. Although the possibilities for smart contracts are nearly endless, a few dominant use cases have emerged.

“Ether has seen an already incredible price gain in the past 12 months, along with Bitcoin and other digital assets. Ether has risen about 560% in the past year, while Bitcoin is up about 430%, according to data compiled by Bloomberg. Unlike Ether, Bitcoin has had since its start in 2009 a fixed supply of 21 million coins that will ever be created. That difference has led critics of Ethereum to say it shouldn’t be viewed as a similar digital currency as Bitcoin,” concludes Bloomberg.

For more news, information, and strategy, visit the Crypto Channel.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

Ethereum Is About to Surge as Supply Is Cut!

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Upwards momentum

Bitcoin has had an incredible run over the past year. However, the second-most popular cryptocurrency Ethereum has actually outperformed it. ETH is up 811% compared to BTC’s 560% return over the past 12 months. Now, a culmination of two factors could help Ethereum sustain its outperformance.

Ethereum market potential

The collective value of all the Bitcoin in the world recently surpassed US$1 trillion (CA$1.27 trillion). Experts believe the market value could surge 10 times higher, as BTC siphons off market share from gold.

Unlike BTC, Ethereum is not digital gold or a store of value. Instead, it’s a token used for decentralized applications. Think of it as the fuel for a global virtual computer. That means Ethereum is akin to digital oil, rather than digital gold.

And the applications built on the Ethereum network have multiplied rapidly. Over the past few years, developers have replicated the traditional financial sector on this network. Users can now generate a fixed return on their savings, offer loans, and borrow money on the Ethereum blockchain.

The most popular application on Ethereum is the Non-Fungible Token (NFT). Users have been using this application to buy and sell digital art. The National Basketball Association (NBA) recently used this technology to sell collectible videos, game highlights, and stats on its NBA Top Shot marketplace.

As the utility of the network grows, Ethereum should become more valuable. However, the creators of Ethereum are close to updating the network to limit supply and make each unit even more valuable this year.

Supply shock

An upcoming update to the Ethereum network (called EIP 1559) will burn or destroy a set amount of ETH tokens. This should reduce the number of outstanding ETH over time, making each ETH more valuable as a consequence.

Growing demand from expanding applications coupled with this update that eliminates supply could make Ethereum skyrocket in 2021.

How to buy Ethereum

Canadian investors can buy and hold Ethereum directly on certain platforms such as Wealthsimple. However, these direct holdings do not qualify for the Tax-Free Savings Account (TFSA). Canadian investors may also be uncomfortable with the risk of holding digital assets directly.

Story continues

Instead, you could bet on a proxy. Most crypto mining stocks, such as HIVE Blockchain, have Ethereum reserves on their balance sheet. There’s also a close-ended fund that tracks the price of ETH directly — The Ether Fund. Over the three months, these proxies have delivered 61% and 210%, respectively.

Adding these to your TFSA could be a great way to add some hyper-growth potential with no tax consequences.

Bottom line

There’s growing evidence that blockchain technology does have useful applications. Bitcoin is being used as digital gold. Meanwhile, Ethereum is being used as fuel for digital applications. While adoption grows, Ether developers are set to implement an upgrade that could cut supply. The price could skyrocket by the end of 2021.

Consider adding a small portion of your portfolio to this arguably speculative asset to avoid missing out.

The post Ethereum Is About to Surge as Supply Is Cut! appeared first on The Motley Fool Canada.

Can Ethereum (ETH) Price Reach $50,000? By CoinQuora

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Can Ethereum (ETH) Price Reach $50,000?

(ETH) beat new highs in the third week of February 2021. Simultaneously, it has failed to maintain its bullish drive in the last week of the same month. Meanwhile, due to massive sell-off by investors and a dip in parent crypto, has affected the entire crypto stratosphere, including the Ethereum market.

Ethereum’s price has dropped, and its trading at the current price of $1,558 has grown in the last 24 hours by 23.43%.

After Bitcoin reached $56,000 for the first time in February, more investors and experts believe the Etereum price surge must get equal heights. Other altcoins such as Binance Coin racing strongly in the DeFi Space, will Ethereum be the next crypto to reach $50,000?

Analyst Andrew Keys: Ethereum Is Digital Oil

Ethereum will solidify its spot as the future substrate of the digital market by underwriting the world’s contracts in 2021. These were the terms of crypto analyst Andrew Keys in December 2020.

The analyst recognizes Bitcoin (BTC) as digital gold and Ethereum (ETH) as digital oil. It looked like his predictions were placed on as BTC met $50,000 and Ethereum crossed $2,000 in February 2021.

Ethereum is facing a tough week, but such a scenario was expected after the crypto asset soared to new milestones. The digital currency has brought considerable gains to investors.

Each investor has a price goal on which they are ready to let a purchase go. Favorably for these investors, the spike in Bitcoin’s (BTC) price coupled with traders’ insatiable interest regarding Decentralized Finance (DeFi), the ETH’s price crossed $2,000.

Most of them used gold as the template of disinvestment. This is when the metal also reached $2,000 and settled at an all-time high price of $2,067.15 on August 7, 2020. It has been trading under the price breakthrough ever since.

Ethereum’s drop in its bullish form has been associated with a massive sell-off in the market. Evidently, in discussion with Bloomberg Television, Kraken CEO Jesse Powell said that “a fall of more than 50 percent in Ether’s price was not caused by a trading-engine failure but by extreme selling.”

He added a big chance that a multiple Ether holder could not believe the considerable windfall. Ethereum had brought him/her decision to sell it all, convert it to fiat currency, and carry on with his/her life.

As prices are dropping to correction points, digital assets will become nearly more reasonable for purchase. The need for ETH as part of the 210 DeFi protocols working on its blockchain coupled with gas fees for Ether transactions which have reached a new high of $39, will see more profits recorded in the long term.

This order set the blockchain with the highest quantity of DeFi protocols on its way to beating different milestones with $50,000 as its prime target.

Ethereum Price Predictions

Ethereum is poised to lead numerous price breakthroughs. Strategists for Fundstrat Global Advisors LLC, David Grider has stated that “Ethereum is the best risk/reward investment working in crypto.”

His views stem from the various functions Ethereum shows where it does not hold to rely on its novel token or a single protocol to decide the digital asset’s total value. He foresees Ethereum price surge more than sevenfold to $10,500 after leading record highs in the third week of February 2021.

Simon Dedic, Co-Founder of Blockfyre and Managing Partner at Moonrock Capital, predicts that Ethereum will be worth higher than $9,000.

In an article posted in the Times of India, ZebPay CEO Rahul Pagidipati added that Ethereum “leads to follow Bitcoin.”

In interpreting his remark, Pagidipati explained the price of ETH will increase to the heights of BTC. This is considering other altcoins follow the same direction as their elder crypto sibling in bull runs and bearish drops.

“Nearly 3 million ETH, which is expressed in fiat currency as $3.8 billion, has been secured up for long-term staking, separating them from the buyable supply,” he added.

ETH 1-day chart with 50-day SMA and 200-day SMA (source: TradingView)

James Todaro of Blacktown Capital assumes that ETH will surpass $9,000. His analysis is primarily centered on fundamentals which could recognize the smart contracts blockchain becoming the next cryptocurrency to surpass the $1 trillion market capitalization by profiting from its Decentralized Finance trend within its protocols, which have a vast user base.

Meanwhile, BuyUcoin CEO Shivam Thakral believes that Bitcoin is consolidating. As such, this is the main reason Ether is touching record valuation. “Investors are looking to ETH as the next most popular and by market cap to make high profits on their investments in the long term” he said.

Finally, Ark Capital Founder Brian Schuster said that “Ethereum as a result of its control of the DeFi world and the potential of revolutionizing the digital world will hit $100,000 by 2024.

Is Now a Good Time to Buy Ethereum?

The short answer is, Yes.

Ethereum is the leader of Decentralized Finance (DeFi). As more protocols attach to its platform soon, which has a great user base reflected in massive trade volume numbers, the crypto asset price will increase tremendously in the process.

For years, numerous Layer One (1) blockchains developed, and, unfortunately, novice developers marketed themselves as “Ethereum Killers.” Many of such blockchains guaranteed a faster and sophisticated smart contract platform but vanished into the wind as idea conception and execution are not the same.

In the future, numerous developers and investors will like to get in on the act and take advantage of the various opportunities available within Decentralized Finance (DeFi). Naturally, this will see Ethereum fall into a small section of future projects.

How do I invest in ETH?

To invest in Ethereum, you need to purchase some ETH. You will also require a crypto wallet to deposit it. The most reliable crypto exchanges will offer free built-in crypto wallets to deposit your Ethereum and other coins.

Then, you will want to be capable of monitoring the price of your Ethereum so you can determine when to sell and cash in on your investment. A cryptocurrency exchange facilitates all this.

Buy Ethereum (ETH)

You can buy Ethereum cryptocurrency fast and efficiently at any exchange. If you hold any cryptocurrency, you can exchange it for ETH coins. You can also buy Ethereum directly with your credit card for fiat currency in many platforms.

Trade Ethereum (ETH) with CFDs

Investing in Ethereum is not only getting Ethereum. If you do not desire to buy Ethereum immediately and still want to earn Ethereum, you can do it. You can use one of the many crypto brokers that offer derivative options for crypto traders with their CFDs.

The benefit of trading with CFDs is distinct. With CFDs, you can often gain high returns regardless of the Ethereum price if you predict the price behavior accurately. Besides, you do not require an Ethereum Wallet because you do not buy the coin.

However, CFD trading takes unique risks and wants a deal with this form of investment in detail. So, try not to make any mistakes unless you may lose your Ethereum Investment entirely in just one trade.

Stock Trading

The decisive benefit of stock trading is its culture. Stock trading is organized internationally. Besides, many investors find it more comfortable to invest in assets rather than buying cryptocurrencies directly.

This makes investing in Ethereum 2021 more convenient than ever. Those who think their investment for the medium to long term should urgently take a more intimate look at this investment option.

Disclaimer: No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

This article first published on coinquora.com

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