Is it a good idea to invest in Ethereum?
You may have seen Bitcoin in the news more often recently. The value of bitcoin has often been on the rise and the price regularly reaches new record prices, but that does not only apply to Bitcoin. Ethereum has also grown rapidly lately, as can be seen from the Ethereum price, but what is Ethereum?
Spoilers! Investing has never been a bed of roses and investing in Ethereum is not an exception. That said. Ethereum is quite a good investment option and here is why.
Ethereum is not just a Cryptocurrency
Ethereum is not a cryptocurrency in itself (Ether is the token that is used in it for exchanges), but a platform based on blockchain technology that allows one to develop decentralized applications that use Blockchain in it, so its potential lies in its power as a kind of structure based on the programming of a possible virtual world. Bitcoin, on the other hand, is more of a pure currency.
Ethereum is behind Defi
This is one of the developments that are called to dominate the future of global finance and especially related to the virtual world. Many experts say that Defi will eventually replace traditional centralized finance. At Harvard, they are of the opinion that this may be the basis of future finances.
Non-fungible token (NFT)
Another of the trendy markets for cryptocurrencies and everything related to the Blockchain. Stories like those of crypto punks and other platforms have meant that these tokens have risen to fame.
These Non-Fungible Tokens that are based on smart contracts seem to be leading the way towards a new way of proving ownership of things, something that apparently can also be applied to physical goods, not just virtual ones.