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3 Reasons Why Ethereum Is a Good Investment

Nov 25, 2022

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There are countless altcoins in existence, but only a minute percentage have the potential to outmatch Ethereum, which has come second only to Bitcoin for some time now. Even with the market crash following the NFT surge and ‘The Merge’ taking place, Ethereum still holds a strong position. If you haven’t already got Ethereum in your investment portfolio, continue reading for three reasons why you should.

Ethereum Has a Functional Ecosystem

Ethereum broke into the blockchain landscape back in 2015 and bought with it the incredible power of smart contracts, which can be built over the blockchain. Smart contracts are automated programs designed to execute once any terms are met, meaning the middleman becomes redundant. For example, if someone gives collateral to secure a loan it can be returned automatically once the repayment terms have been made.

The smart contract infrastructure sits at a completely polar opposite to Bitcoin, which only exists as a digital currency. The smart contract infrastructure of Ethereum is the main reason why developers flocked to the platform. Currently, more than 4000 developers are working on Ethereum each month. According to findings from State Of The DApps, more than 4000 applications are running on Ethereum, which is more than any other blockchain holds.

The ability to use Ethereum to create real-world digital solutions is one of the reasons why it will continue to thrive in the future. We suggest investing in Ethereum now while it’s mid-crash because the only way is up. To keep up with the current ETH value, take a look at these Ethereum price charts.

Ethereum Is the NFT King

Alternative smart contract blockchains are generating steam when it comes to NFTs, including Polygon, Solana, and Binance Smart Chain. However, Ethereum is still king of the NFT. If you take a look at this article from Forbes, you will see that the Ethereum blockchain accounts for around 76% of all NFTs. By dominating the NFT space, Ethereum will enjoy increased value from the mainstream adoption of blockchain gaming, which relies on NFTs.

Ethereum is Evolving

We mentioned “The Merge” briefly in the introduction. Traditionally, Ethereum used Proof-of-Work to validate transactions, but this was extremely energy-intensive and led to mass scepticism about the future of the blockchain. For years, Ethereum has been talking about revolutionizing its blockchain by pivoting towards Proof-of-Stake, which relies on validation.

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This has rippled the blockchain community, especially those in the ETH mining business because their livelihood has been ripped away. However, the change has reduced their energy usage by around 99%, making Ethereum favourable among eco-warriors. Further, more developers will be able to apply to use the blockchain because of increased capacity, which will help boost its overall value.

Conclusion

Ethereum has recently had a revolutionary update to reduce energy usage and expand capacity, it still holds the NFT market crown despite rocky seas, and it has a rich infrastructure reliant on smart contracts that developers love. With all of this going for Ethereum, there’s no reason to delay investment.


NCFA Jan 2018 resize - 3 Reasons Why Ethereum Is a Good InvestmentThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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