As the second-largest cryptocurrency in the market, there are a lot of rumours if Ethereum (ETH) can take over Bitcoin. In fact, experts of Ethereum explained that it was developed to supplement the missing features of Bitcoin.
Ethereum serves as the platform of over 260,000 cryptocurrencies and even provides a decentralized machine. This machine is called Ethereum Virtual Machine (EVM) that can execute scripts through an international network of public nodes.
There are also a lot of people who think that Bitcoin and Ethereum have the same function. Yes, Bitcoin and Ethereum is distributed using a public blockchain network and is also decentralized. But what makes Ethereum different is its purpose and capability.
Bitcoin focuses on peer-to-peer online transactions while Ethereum is focused on running programming codes of a decentralized application as a platform for other cryptocurrencies. In addition, Ethereum’s transaction fees are cheaper.
With the popularity of cryptocurrency in the online and business industry, there are also a lot of predictions that Ethereum’s value will hit the $1,000 mark.
So, what is the price prediction of Ethereum in 2020?
At the beginning of 2020, ETH cost $130 per coin and continued to increase up to $279 in mid-February. However, it drastically decreased for as low as $95.87 due to the coronavirus outbreak. Nevertheless, it gained back its stability and started to soar reaching the $227 mark.
In the second quarter of the year, it was estimated that it can reach the $1,600 mark but will decline around $1,550.
According to some experts, it might even reach the $100,000 mark in the next five years. But with the continuous decline in the market due to the pandemic, there is also a possibility that its value and other cryptocurrencies will decrease as well.
Regardless of its growing competition with Bitcoin, it remains as a special technology that can completely change the industry.
What is the basis for Ethereum’s price?
The price of ETH is determined by Ether miners in exchange for gas. Gas is the measure used to determine the price of Ethereum. These miners are also responsible for accepting or declining transactions based on the price of gas. According to data, the average transaction fee has dramatically increased from $0.08 to $0.41 in 2020 alone.
Is it worth it to invest in Ethereum in 2020?
Definitely! Aside from being the second-largest cryptocurrency next to Bitcoin, it is also one of the fastest-growing cryptos in the market. If you bought an ETH at a low price, you can sell it once the price goes up again. By doing this, you can make more money higher than your initial investment.
Whether you buy ETH for a long or short term investment, it entirely depends on your goal and your tactics on how to increase your funds.
Here are some of the advantages of using ETH:
- Allows you to build and execute smart contracts without the need for a third-party intervention
- Provides potential developers with a comprehensive set of tools to build decentralized applications
- The government has no power to control ETH
- It is developed with an open-source network which provides more stability and transparency
- If an error occurs, it can be easily solved by entering a source code
- It is cheaper due to the absence of third parties
- Scams or counterfeited money is not possible with ETH because it has its own identifiers
- Aside from using it for cash transactions, you can also create your own Initial Coin Offering (ICO). An ICO is a way for you to raise funds or act as a source of capital for startup companies.
With the continuous increase of Ethereum’s value, there is no doubt that it might actually surpass Bitcoin. Nevertheless, investing in cryptocurrencies like Ethereum and Bitcoin requires you to take risks because of its volatility.
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