If you are new to cryptocurrency and Ethereum in particular, then you may have no idea how much this cryptocurrency has grown. Started in 2014, Ethereum is now the 2nd largest coin by market capitalization. The current value of Ether (ETH) of below $400 pales in comparison to its all-time high value of $1417 reached in January 2018. That may leave prospective crypto investors asking one fundamental question: is it too late to buy ETH?
It’s shouldn’t be really a case of being late or otherwise, because you can’t pinpoint exactly what is or will be with cryptocurrency. We could say that, it’s never too late, especially with the value of the top coins predicted to grow exponentially in the next couple of years.
What’s important is to find a suitable entry point in order to have the optimal chance to gain high returns. The main focus, experts say, should not be on the current price, but what inherent value the platform has. In this case, what does Ethereum provide that will easily help its token coin gain value in the future?
With this in mind, let’s look at reasons why buying Ethereum in 2018 isn’t or won’t be a very bad investment step.
Why it’s still viable to buy ETH
Ethereum’s blockchain platform is still the most popular so far
There are several cryptocurrencies in the market that are striving to be like or even better than Ethereum at the moment. Such platforms like Tron, Cardano, NEO, and NEM all want to dethrone Ethereum form the top of decentralized applications and smart contracts charts.
But Ethereum has one advantage over all of them: it has proven over time that it can deliver, unlike some of the startups that are only getting their mainnet up and running. The popularity index can be a factor when developers decide on which platform to use, and Ethereum appears in pole position at the moment.
Ethereum is an open-source blockchain platform on whose network thousands of decentralized applications, smart contracts, and token-based crypto startups have been created. It is this inherent value that gives ETH a better chance at surging again in the future. Ethereum derives its appeal from its EVM platform. By operating both as a currency and a utility token, it allows for greater application than just being a store of value.
The intrinsic value of ETH as a transactional coin is superseded by its wider utility value. The use of Ethereum’s blockchain technology to create thousands of decentralized apps (dApps) and to host most of the initial coin offerings (ICOs), gives a head start to Ether, which is used as “gas” to power these transactions. This guide Ethereum 2018 | Ultimate Coin Guide for Ether Fans and Newbies provides a better explanation of how this is going to pan out.
Success of ERC-20 token ICOs
The use of ERC-20 token standard on the Ethereum Virtual Machine (EVM) isn’t going to wane any time soon. The standard makes building token-based crypto projects easy, giving developers a platform that allows them to put any blockchain idea into fruition.
When these ICOs go on to succeed, the value of ETH goes up. That is what happened in 2017, when hundreds of token sales were successfully launched on the platform. The reason the price of ether goes up lies in the fact it is used primarily as the “gas” that powers the ICOs, smart contracts, and dApps.
The more of these transactions there are, the more ether is used and the higher its demand and hence increase in value. That happened in 2017, though it has gone down in 2018 after authorities started cracking down on rogue ICOs. Even though there are reports that several of the ICOs that launched on Ethereum had failed or were yet to be rolled out, it doesn’t take much from the superiority of this platform.
The belief among many supporters is that Ethereum is still the most popular among all the platforms with similar capabilities. There’s a very high chance several legit ICOs could be launched on Ethereum’s network in 2018 and beyond, potentially leading to the value of ETH skyrocketing once more.
ETH’s low price
In terms of price movements, ETH is trading at one of its lowest in several months. Just like the rest of the market, the value of ether took a hit in Q1 2018, slumping by over 40% over the last three months. The current price of just above $420 may be a far cry from the days of $1400 per coin, but this is good news for would-be new investors.
The worrying downtrend may be a sore on Ether’s value, but it’s only good to remember that the cryptocurrency market is still unstable at the moment. The bearish trend means that the price has dipped to a level where you can buy low and hodl for huge returns in the future. According to cryptocurrency prediction site walletinvestor, ETH is predicted to grow by +971% by 2023 (relative to today’s price index). If you invest now, you’d still make a huge profit out of your initial investment.
Ethereum improvement proposals
Ethereum was regarded as a “world computer” in its formative years; now it’s being touted as the next phase, internet3.0. The problems of scalability and speed, and ballooning transaction fees have plagued Ethereum and Bitcoin for a while now. Yet, with protocol updates and upgrades like the “Casper Implementation” are meant to make the platform robust enough, and lower transaction fees.
This is perhaps one of the biggest challenges that the platform has which could negatively impact future price growth. There are already platforms like TRON that promise higher transactions per second (TPS) and zero fees. It’s unlikely that Ethereum will continue to be expensive, as that would hand initiative to its competitors.
So, the expectation is that features like lightning network and Plasma will eventually make the network faster and cheaper. If this happens soon enough, then the possibility of Ether value gaining in later stages of 2018 and beyond will have increased.
It’s not too late to invest in Ethereum. However, the general principle is that investing in cryptocurrency is a risky venture. For the investor knowledge about what cryptocurrency is and its features might help avoid making calamitous decisions. Diversify your portfolio by having a mix of the top performers and some upcoming coins that are still under $1.