Ethereum cryptocurrency: Is it a good investment?

Ethereum is a decentralized blockchain network powered by the Ether token that enables users to make transactions, earn interest on their holdings through staking, use and store nonfungible tokens (NFTs), trade cryptocurrencies, play games, use social media and so much more.

Many consider Ethereum to be the internet’s next step. If centralized platforms like Apple’s App Store represent Web 2.0, a decentralized, user-powered network like Ethereum is Web 3.0. This “next-generation web” supports decentralized applications (DApps), decentralized finance (DeFi) and decentralized exchanges (DEXs), for instance. 

This guide will provide you insights on the history of Ethereum, ethereum mining, how does Ethereum work, how to buy Ethereum, ETH vs BTC, Ethereum benefits and a glimpse of Ethereum 2.0. 

What does Ethereum do?

Decentralized finance has arguably been the Ethereum network’s biggest achievement. DApps that can perform several functions within the ecosystem popped up around 2019 to 2020 and are growing in popularity by the day. The more DApps are used, the more the Ethereum network will be used as a result. Ethereum’s DeFi scene is the biggest one out there, with successful DApps bringing more awareness to the platform over the years.

Artists, for example, are making millions of dollars by bringing their work to the blockchain via nonfungible tokens, or NFTs. One might wonder, why buy digital art when we can just screenshot it? Collectors want ownership, that’s why. NFTs also hold proof of ownership and serve as a secure form of storage. It’s basically an all-in-one for collectors, so it’s not hard to see the appeal.

It’s the same reason that one would want the original “Mona Lisa” over just a copy, even if a copy is indistinguishable from the first. NFTs also represent usable items and accessories in online games. Players can decorate their houses and characters with unique assets from artists, providing yet another income stream for creatives.

Developers have built uncensorable social media apps, allowing users to tip one another for content. Games allow users to invest in assets, play to grow them and then sell for a profit, extracting actual value from their game time. There are prediction platforms that reward correct forecasts and freelance platforms that don’t take a huge cut of each payment. 

This is all managed autonomously through blockchain and smart contracts, with DeFi putting users more in control of their funds than ever before.

Will Ethereum go up in 2022?

According to Coin Price Forecast, the value of Ethereum will rise in the first half of 2022, and the cost of ETH will almost reach $9,000. However, in the second half of the year, the price will decrease to $8,200.

Price prediction for 2022: