These days everyone is aware of Bitcoin and Ethereum and every investor’s second choice after Bitcoin is Ethereum and asking the only question should I buy Ethereum?
Many people, like you or me no matter love crypto or not but have definitely heard about Ethereum.
If you have your investment portfolio and looking to add Ethereum crypto asset than this guide is to give you an idea on should I buy Ethereum or not?
If you are investing in a typical share or stocks market then you already have a very strong platform or market experts to analyze the price movement and future plans of the companies.
But Cryptocurrencies is still somewhere lacking in all this, hence this guide is to highlight specifically for Etehreum future plan.
After reading this guide you will get the whole idea or philosophy behind price movement of Ethereum based digital cryptocurrency Ether (ETH).
If you are new to blockchain technology and planning to invest in this than check here the way on how to invest in blockchain technology.
We have also prepared a list of Top 10 best Cryptocurrency to invest, which have already proved their potential in past including Ethereum.
If you are interested in investing future of Cryptocurrency means the growing platform then check this list of Top 7 Altcoins for reference.
This guide is mainly focussed on, should I buy Ethereum or not and future price prediction and what impact the price movement in Crypto market.
Before deep dive let me brief you what is Ethereum?
What is Ethereum?
Bitcoin was the first cryptocurrency introduced in the year 2009 based on blockchain technology to decentralized financial systems.
The idea behind Bitcoin is to replace any third party mediator between end to end transactions such as banks.
But the real use case with Bitcoin is for digital currency only, you can not use that for any other purpose.
Then later in the year, 2014 Ethereum has been developed by Vitalik Buterin and was released first time in the year 2015.
This has used the same consensus decentralized mechanism of Bitcoin but introduced a new use case as a smart contract on it.
Let say person A went to B and complete some task and in return person, A was expecting to get release his money or invoice from B.
However, there is no guarantee that person B will release the money to A after completion of work.
Hence smart contract by Ethereum has been introduced on Ethereum blockchain network, where both party A and B will first agree to happen on some condition.
Once that condition achieved than an auto settlement of payment will happen using the Ether token, which is the native digital asset of Ethereum blockchain.
In a simple way, it is a blockchain based smart contract platform which not only used as a cryptocurrency but could be used for varieties of use cases such as building DApps.
To learn more about Wallet, mining, how it works and many more other factors check our detail guide on What is Ethereum?
Should I Buy Ethereum? : Reason to explain
Well, you got an idea what is Ethereum and why this has been introduced now as an investor you have to focus on below factors to invest in any cryptocurrency market.
Will highlight all the possible aspects which could create a positive or negative wave for Ethereum.
Before moving ahead let me clarify you that you are not investing in Ethereum blockchain but you are investing in a digital asset, which works on Ethereum blockchain called Ether (ETH)
Ether is also known as Ethereum coin (ETH), lets start and highlight.
Market Trend and Price history
We all know that still, crypto is nowhere regulated and hence it has no control of any individual and total market cap is not as huge as the stock market.
This directly indicates that it could be easy to manipulate any time at any moment. Most of the time we have seen that price movement is based on the people emotions.
While going back the beginning of Ethereum in 2015, the initial price was around 0.75$/ETH Coin.
Which till May 2017 reached to 13$/ETH mark and later til the end of 2017 reached to 340$/Coin
However, in the 2017 rally market, where cryptocurrency was in a boom, the price movement of Ethereum coin continue and it reached its all-time high of 1390$/ETH.
Within a two year, it increased around 1900 times which is no one can imagine, but that was the reality.
Imagine you have invested 100 dollars that were become 190k USD in just two years.
But later at the end of Sept 2018 when the market was crashed due to some country regulations on crypto investment cause price drop down back to 200$/Coin.
It continues more deep dive and reached close to 80$/Coin in Dec 2018 and now the market is again bullish at the beginning of 2019 and Ethereum is trading around 170$/Coin.
That movement was because of blindly investment and only profit margin game, there was nothing related to the actual technology and use case of Ethereum in the market.
This proves, how much volatile this crypto market is, which create uncertainty to predict any future price movement.
This is the first point to ask yourself that you are ready to enter in this volatile marker before asking should I invest in Ethereum?
Crypto has not any certain regulatory which could explain you or give you an idea of what is possible to happen and the same issue is with the Ethereum.
But this has been observed, that whenever if there is any future event planned to happen or any collaboration if Ethereum is going to do with any big venture will definitely pump the price.
A single positive wave in the market will definitely increase the Ethereum coin price and one single negative news with Ethereum can ruin the whole market.
Ethereum price movement runs parallel to Bitcoin if Bitcoin will go up Ethereum will go up and vice versa.
Take a look for the above price movement chart, it looks similar behavior of Ethereum as Bitcoin.
Keep eye on a social media platform like Tweeter, the major source of getting Etherum information, follow Ethereum community for more news updates.
Start following big media platform like Coindesk and Coin Telegraph to get updated with when you should buy and you should not.
Before investing, anywhere check on those platforms what is going on with Ethereum in the market and answer yourself should I buy Ethereum or not?
Above two are the highlights of taking the decision on whether you should enter the crypto market or not? As this is what makes crypto very volatile.
Now, will discuss what can decide the future of Ethereum, which will answer your question should I buy Ethereum?
Smart Contract or DApps on Ethereum
Well, currently the main use case of any Blockchain network except cryptocurrency is to build smart Contract. Ethereum was the first of blockchain generation who introduced this.
That is why Ethereum is known as the second generation of Blockchain which has introduced the new use case other than cryptocurrency after the first generation Bitcoin.
Using smart contract most of the decentralized applications have started building upon on the Ethereum blockchain network.
Referring to the DApps Radar, we have found that till date around 1453 DApps build upon it and many more may come.
Most of the DApps are the gaming and gambling apps, but the real concern is the competition from the other smart contract based Blockchain network.
EOSIO has launched EOS blockchain network and Tron foundation has introduced TRON blockchain network.
Both have been introduced back in the year 2017 and consistently grabbing the DApps market, till date EOS has around 374 DApps and Tron has 238 DApps.
Due to this, the DApps from Ethereum is started moving to EOS or TRON because of these new platform popularity and scalability.
Ethereum has also introduced its ERC 20 token, which allows us to create our smart contract very easily.
ERC 20 tokens are another cryptocurrency which is built upon Ethereum blockchain network to solve another big problem.
Back in the year 2017, Ethereum was the only smart contract providing platform hence most of the other Crypto assets you have seen were built upon the Ethereum blockchain.
That still plays very strong reason on the popularity of Ethereum, as still most of those Crypto assets projects are running on Ethereum blockchain only.
But now the time has changed and many more competitor is growing in the market.
Competition in the market
Every day new technology is growing in the market, we have seen in 2017 where only limited cryptocurrencies were in the market.
But after 2017, we have seen around 2000+ blockchain based cryptocurrencies trading in the market and Ethereum is the second top must currency.
Still, holding its second position in terms of price and market cap after Bitcoin.
But above are few highlighted cryptocurrencies, which were introduced in 2017 but still holding a very strong position in the market.
The prime concern which Ethereum is struggling is the scalability issues where it is able to clear max 15 transactions per second.
However, we are moving in a fastest growing technology world, where the ability to clear millions of transactions can only make your platform sustainable for a longer time.
Tron Blockchain based network has the capacity to clear around 2000 Transactions per second however EOS has currently around 4000 transactions per seconds.
EOS is claiming to clear around millions of transactions per second in the near future as the user adoption increases.
That is why people are debating EOS as an Ethereum killer, EOS won’t ask you to pay for any transaction fees, you can use or transact by simply stacking your coins.
However, Ethereum needs Ether to pay while you perform any transactions, which may create trouble in the future while the price of the coin increase.
All major differences between EOS and Ethereum are highlighted in EOS vs Ethereum guide.
Learn more about What is EOS and What is TRON from our detailed guide. The other big competitor is Cardano.
The owner of the Cardano is the co-founder of Ethereum Mr. Charles Hoskinson.
Charles Hoskinson is claiming Cardano as the future of Blockchain and claiming this as the third generation of blockchain.
Learn more here about What is Cardano and how it works. All listed three coins are in the top 10 list and consistently growing their user base.
There might be a probability that somewhere in the future may beat Ethereum.
Future of Ethereum and Partnership
Only concern till date observed with Ethereum is the scalability issues. Yes, Ethereum is able to provide smart contract but not the scalability.
For the same reason, the Ethereum community have done a hard fork of Ethereum and created a new coin called Ethereum classic.
Ethereum is still running on Proof of Work (POW) mining mechanism, which is not eco-friendly.
Other blockchain projects have been moved to Proof of stack mechanism which somewhere minimizing the issues with old generation mining and electricity consumption issues.
But few companies like Airbnb and Uber have started building their DApps on Ethereum blockchain network but on test net only as a pilot but Not sure if they will implement this or not.
Previously in 2017 number of ICO (Initial coin offering), were launched on Ethereum blockchain and still running on same.
Ethereum has very large community support till date which may move or not move to any other side based on future progress or any update with Ethereum blockchain network.
Only this community ensuring the current price stability and the advantage of the first smart contract based blockchain network making this as a popular choice.
It is not easy to beat Ethereum by EOS and Cardano like other cryptocurrencies because they have way more to go.
The current market capitalization of Ethereum is 17.6 Billion USD as compared to 5 Billion EOS and close to 2 Billion Cardano and Tron.
We have not seen any massive change or update with Ethereum, the team is finding or proposing the solution to move mining POW to POS.
If this happens, will make easier to mine the Ethereum coin but not sure will this change make Ethereum to compete with what Cardano or EOS is building?
Now if I ask myself should I buy Ethereum? Well, I am a bit optimistic for a short time.
Price Prediction of Ethereum
In this volatile market, no one can predict the actual market price of Ethereum, it is like guessing the random number which has no base to prove.
But yes, few technical analysts have done a price prediction based on past price movement or blockchain network adoption and belief of community.
Your profit in the crypto market will depend on how long you want to hold Ethereum coin.
I am warning you instead of any specific price target decide your profit percentage. That works well in this crypto market.
Let me highlight a few of the expert price prediction.
Wallet investors are quite pessimistic and predicting its short term 1-year forecast down to 26.723 USD.
Smartereum is another price predicting website claiming the Ethereum price by end of 2019 will be around 500$ and by 2020 may touch 2000$.
There are few experts listed in U Today expecting Ethereum price will be between 250$-600$, which is three times than current price.
Anyway, this short term price prediction is quite optimistic because of the very large community of Ethereum.
Many cryptocurrencies are still running on Ethereum blockchain, which will keep sustaining the Ethereum for the near future.
If you want to buy Ethereum can trade on Binance a low trading fee exchange or from CoinBase wallet directly in exchange for fiat.
You know you can buy any Cryptocurrency with 0$ transaction fees, but how? To learn this in detail check our separate buy Crypto using Coinbase and GDEX but how?
My View on Should I buy Ethereum?
Before placing your buy order for Ethereum you should first decide whether you are planning for short term goal or long term goal?
If you check the technical analysis of past Ethereum history, then lot much has changed now due to the large competitor in the market.
If you focus on community support, then yes Ethereum is having the huge support for the price movement, it won’t go anywhere overnight.
I am expecting the near future of around 1 or 2 year looks great for Ethereum, as still, all other crypto depends on Ethereum and Bitcoin.
But few competitors are still growing, which may create a strong community in the coming 2-3 years.
If you got the whole idea and asking answer on should I buy Ethereum?
Then my answer is yes, as still most of the market is trending based on the price of Ethereum and community support.
You can go for short term target but for the long term, I cannot predict the future due to upcoming trends and issues with existing Ethereum blockchain network.
What do you think about Etherum, will it price hit the new height of the sky or will crash and touch to the ground?