Should we really buy Ethereum in 2018 ?
More and more investors are buying crypto-currencies in France and in 2018, with the price of Ethereum also low, many believe that buying ethereum is a good investment.
Let's analyze in 5 points why investing in Ether is so profitable.
The interest of the approach is to define if there is an opportunity to invest in this cryptocurrency which is the 2nd virtual currency from the point of view of market capitalization behind Bitcoin.
To determine the strengths of a cryptocurrency or the hazards that can influence its course, we must take into account its features already implemented and those to come. This is why it is necessary to refer to its roadmap. The roadmap lists the projects and ambitions of the cryptocurrency on the year, it is a kind of planning of the planned evolutions.
Why absolutely invest in Ethereum
1- Ethereum, more than a cryptocurrency is a platform
We must always invest in cryptocurrencies that offer a wide range of services beyond their exchange function. Because more cryptocurrency has features and applications of integrations to multiple sectors, safer it is. Not all services will be counter-productive at the same time.
Ethereum is not just about the Ether currency, it's a platform that integrates cryptocurrency and asset management tools; smart-contracts. These so-called smart contracts offer a multiplicity of applications that consolidate the network by diversifying the sources of revenue.
For simplicity, the Ethereum network allows everyone to do a lot of things like raising money, bidding, paying taxes, charging an electric car, playing a video game, and so on.
2- Ethereum, as popular and easy as Facebook or Windows
In order to generate a profit, it is better to choose a cryptocurrency that has received wide support and is supported by a large community.
Ethereum garners a large vote in the world of cryptocurrencies. It is considered a normal and major evolution of the "paleo" cryptocurrency that is Bitcoin. Indeed, one could, for comparison, tell Bitcoin that it is the DOS cryptocurrencies, and Ethereum Windows or Mac OS popularized the system.
Like the operating systems Windows and Mac OS, Ethereum supports different applications from various editors, which is not the case of Dos or Bitcoin.
3- More than half of the cryptocurrency funds will transit via the Ethereum network
Your selection criterion must include a cryptocurrency able to give itself the objective of a solid market cap that can evolve over the medium, long term.
Ethereum has, in the opinion of many experts, a strong chance to see its Market cap evolve at a faster rate than that of Bitcoin.
Gradually reducing the dominance of Bitcoin and eventually replace it as a reference cryptocurrency, which will create a major rise in its price.
A scenario that is still hypothetical, but which convinces more and more experts, thus creating a virtuous circle.
Indeed, more and more investors think that Ether will soon exceed Bitcoin. Therefore, they invest in the goal that this prediction is realized.
These investments raise the Ethereum and inevitably reduce the dominance of Bitcoin.
This makes this hypothesis more credible, attracting new investors and so on.
Among these experts are Olaf Carlson-Wee, President of the Polychain Capital Guarantee Fund. According to Mr Olaf, "the Ethereum knows an explosion of its course on average 20 times in one semester against 8.5 times for Bitcoin".
4- A slowing down of its production of currencies that will create inflation
On October 16, 2017, Ethereum experienced a major update with the implementation of a protocol called Byzantium. This protocol is a prerequisite for its upcoming move to a so-called POS (Proof of Stake) compensation mode.
The immediate consequence of Ethereum's transition to a POS mode is that its stock of currencies will no longer depend on the ever-increasing number of miners, but it will follow a linear numerical sequence. This will involve an increase in the course.
5- Ethereum is the cryptocurrency used by Microsoft and JP Morgan Bank
Joining the Enterprise Ethereum Alliance (EEA), more than 500 wealthy companies around the world have made the daring choice to join the preferred crypto-currency business leaders. Bill Gate, structures that are often risk-averse, have joined the list of companies that believe in the currency. One could quote the oil company or the Thomson Reuters press organ.
In addition, Ethereum is one of the most advanced institutions of the World Bank, Vincent Launay, that we are witnessing to "Wall Street Ethereumization".
So it's a good time to buy, because it could be a little harder later because of inflation.