Will Ethereum crash?
Despite having a good start in the beginning of 2021, the crypto market has yet again fallen down, Ethereum being no exception.
The price of Ethereum coins have dropped in an unprecedented manner; the price fell down up to 55% from its peak. These market crashing situations are daunting for investors, but at the same time, it is a golden opportunity. The most expensive crypto coins are on sale.
As of now, the current price of Ethereum coins are around $2400, which is pretty much close to half of its peak price ($4000). This is an opportunity for those investors who were eyeing these currencies, so now is the time to invest in Ethereum when it is 50% cheaper and affordable. But investing in cryptocurrencies and, in this case, Ethereum can be tricky if you do not have knowledge of the volatility of digital currencies. Let’s look at the details before you try to invest in Ethereum.
Wild cryptocurrency market
“All investments are subject to market risk”, mostly everyone once in their lifetime has heard or seen this statement. When we speak about the digital currency market, the same applies. All the financial markets are volatile to some degree. But time and time again, the cryptocurrency market has proven to be highly volatile in nature. Even stocks have their ups and downs, not to the extent we see in the crypto market. Ethereum has not escaped the grasp of the market commotion. But this is not the worst-case scenario; back in the year 2018, the value of the Ether coin plunged 95% over the entire year.
If you want to invest in Ethereum, you need to be mentally prepared to face such dynamics. Also, we do not know if Ethereum will still be in the game after 10 or 20 years. Because developers are constantly working and upgrading the blockchain technology, bringing out better coins (depending upon specification) with more features, facilities and accessibility but none of those digital coins has been able to achieve stability to date.
The team behind Ethereum is going to release Ethereum 2.0, which will offer more features and advantages for this particular crypto coin. They will make the mining of ether coins more environmentally friendly, cheap and easier. Although Bitcoin is the most popular one among bitcoins, ethereum has more facilities to offer. The developer and creator of Ethereum crypto coins, Vitalik Buterin, wanted to create something which has more to offer than what Bitcoin has to offer (substitute to fiat currencies).
Ethereum is also the creator of NFTs (Non-Fungible Tokens) and decentralized finance systems. Non-fungible tokens are digital assets linked with art forms or actual properties and have real-world value.
With further upcoming updates, Ethereum does have the chance to create an uproar in the Crypto world, but nevertheless, it would be a good idea to invest cautiously if you are trying to buy into Ethereum crypto.