Before moving on to our article on Ethereum, I think it will be useful to draw attention to a few details. I would never advise people to do what I write about because crypto is extremely volatile. With crypto, there are no companies and promises, it is a rapidly changing technology. Anything can happen overnight. Do your own research because you are responsible for all the financial decisions you make. You have to understand for yourself and make your own decisions.
Ethereum is on Fire
At the beginning of this year, Ethereum was worth $775.70 and now it is $3,200. ETH has broken new all-time highs in the market past months. Vitarik Buterin discovered Bitcoin in 2011. He started to play with Bitcoin in the market for 2 years. Then he realized that Bitcoin is a limited cryptocurrency therefore he launched the Ethereum network in 2015. He became the youngest crypto billionaire in 2021. He started to use smartphones for trading. A rivalry began between Bitcoin and ETH.
However, Bitcoin remained, and it is still the most popular number one cryptocurrency. Now, today ETH is making a huge comeback that is bigger than ever. ETH is on fire. ETH works with blockchain network like all other cryptocurrencies. It is second biggest crypto in the market today. Ethereum allows people to build decentralized apps on top of its blockchain network.
Why is it Become So Valuable?
The EIB which means European Investment Bank has created €100 million worth of two-year bonds. Bonds are promises to investors that they will pay them back their money. They use the Ethereum blockchain to issue those tokens. They were given a triple credit rating which is the highest rate that a bond could even get. It means they are trustworthy enough. However, it does not mean that Ethereum is the safest thing that you can invest, give all your money, and invest to Ethereum.
EIB is a huge major bank which chooses the crypto to create bonds and raise money. It is the first time ever.
The other reason for Ethereum‘s value is NFTs. A lot of NFTs are based using the Ethereum network. Ethereum’s success does not depend on supply and demand such as Bitcoin or other coins. It depends on people using the blockchain.
Bitcoin requires people to use computers and mining rigs. They must solve complex algorithms. However, with Ethereum, it tries to decentralize and secure the network, but you have not used the computers and electricity. It requires people to show proof of money. You should not worry about your money being stolen. The moment it is stolen it means crypto becomes worth nothing. Ethereum can be the best form of investment in the next 10 years. It has limitless potential. Nobody knows where it is going to go.
In January 2021, Ethereum was the second biggest cryptocurrency out there in the market just like now. One investor predicted that it would trade at $3,000 level when it was trading at $1,200. As we can see, just after 5 months in May 2021, that prediction happened. Now Ethereum is trading at $3,900. That investor was Megan Kaspar. She said that but nobody believed in her at first.
Now, people say all these things will make ETH around $8,000 $10,000. One of the most popular investors Megan Kaspar says this. She is co-founder of the digital investment company Magnetic. She explained that ETH uses the stake proof model unlike the Bitcoin so this can push ETH to up, which is where bitcoin is at today. Megan Kaspar said that she sees upside for Bitcoin too, it could hit $200,000 by the end of the year. On 7 May 2021 it was trading at $57,700.