Ethereum is the second-largest cryptocurrency in the crypto world after Bitcoin. However, even though Bitcoin holds a higher value, the potential for making money and creating a larger learning curve for new investors is much higher in Ethereum. 

Compared to Bitcoin, which creates value as a “digital gold,” Ethereum is a software that runs on blockchain technology. Users can interact with the software by using the cryptocurrencies associated with Ethereum or buying and storing them as a value. 

Ethereum is a common cryptocurrency used by developers, but let’s not forget how competitive the crypto market is. Today, we will show you the top 16 reasons you should invest in Ethereum. 

16 Reasons why Ethereum is a good investment 

Ethereum is an innovative network 

You’d have many returns today if you invested in Ethereum only a few years ago. Only a few years ago, Ethereum had a price of less than $300, and now, it stands strong with a value of more than $3,000. So, if you invested $1,000 about five years ago, you’d have more than $10,000 right now. 

The Ethereum network is quickly evolving and allows decentralized digital infrastructures and marketplaces to develop on this network. As a result, Ethereum has a much higher supply rate than Bitcoin but has nearly half the market cap of Bitcoin. As of now, more than 120 million Ethereum are in supply circulation, and the total market cap is $386 billion, while it is $686 billion for Bitcoin. 

However, many experts predict that with this rate of development, Ethereum’s market cap might have a chance of surpassing Bitcoin. First, however, let’s wait and see what happens in the upcoming years. 

Note: Click here to find out how to buy Ethereum with credit card 

The Ethereum virtual machine 

The Ethereum virtual machine (EVM) is one of the most powerful points of why you should be investing in Ethereum. It’s a programmable system that allows people to build almost anything. Moreover, since the beginning of the project, thousands of programs in smart contracts have been developed.  

Many more are to come, especially after the world has understood the EVM’s potential. However, to use the EVM, you need to buy Ethereum, so this is a better bet for investing in Ethereum for the long term! 

NFTs 

Non-fungible tokens (NFTs) are digital assets that you can own, such as music, artwork, videos, and much more. Investors can buy and sell NFTs on marketplaces such as Opensea.io, Crypto.com, Binance, and more. In addition, the Ethereum network gives out different types of IDs for NFTs, making them unique. 

There is a functionality called The smart contract that automatically transfers the ownership of the NFT’s ID from the seller to the buyer from the buyer’s ETH receipt, so the person selling the NFT can’t perform any manipulations. The prices of NFTs differ; they can be sold for 6-digits or even a couple of bucks. It really depends on how rare and unique they are and, most importantly, who owns the NFT! 

You’re wondering why NFTs seem so important and if it’s worth paying that much money for them? You may think that you can just copy and paste the image, right? Wrong! NFTs have a tax treatment, and depending on their classifications, they can either be classified as collectibles or intangible capital assets. So, for example, you could buy an NFT for, let’s say, 1 ETH (worth around $3,000) and donate it to charity after a few years. So, if you’re employed shortly, you may get a considerable return from the IRS after you file your tax. 

The new type of development has angered some taxpayers. Many people may claim that this move is cheating and a disadvantage for individuals who don’t know much about the crypto world or NFTs, but it isn’t entirely true. The charity you donated to can always sell your NFT on popular platforms such as crypto.com, Binance, and other platforms to fund their daily operations. 

It’s a long topic to discuss, but you can decide what to do with your NFT. What’s beneficial about this is that you still use Ethereum to purchase NFTs. Even though there are other cryptocurrency networks for buying NFTs, and only recently did platforms such as Opensea.io start accepting credit and debit cards, Ethereum is still a popular payment method. 

Overall, with cash, your value won’t rise, but if you hold Ethereum and buy NFTs when Ethereum drops in value, you can later sell it for the same price you brought it, but when Ethereum rises in value. Pretty good, right? 

Ethereum has a high level of potential 

Ethereum is currently at around $3,000. Prices fluctuate every day, so don’t be shocked if that isn’t its current value. While this value may still seem high, don’t be fooled because Ethereum still has the potential to grow even higher. That’s because of the increase in the crypto market world. 

People see cryptocurrencies as a new alternative to traditional investments, including stocks and real estate investments. Why so? Crypto has higher returns whenever you invest in more stable coins like Ethereum and Bitcoin. Of course, we can try to look like experts, but at the end of the day, many experts predict Ethereum hitting more than double its current price by the beginning of next year! 

ERC20 standard 

The ERC20 standard is probably one of the greatest innovations made on Ethereum. Moreover, it has paved the way for other innovations on the Ethereum blockchain. Today, most of the projects you see on the crypto market are ERC20 tokens. In short, Ethereum was created but made way for other cryptocurrencies to join the crypto world. 

Since then, innovations have kept coming, and let’s not forget what we mentioned before, NFTs! Additionally, the more cryptocurrencies join the market, the better it’ll be for Ethereum’s value, which will continuously rise! 

Ethereum provides real-world applications 

The huge advancement of the crypto world has led to a rise in dapps. In addition, the decentralized world has started to incorporate into many popular sectors such as social networks, games, decentralized exchanges, and more. 

However, the crypto world has no central bank or other institution to back it up as the fiat currency does. However, even though it doesn’t have a backup, Ethereum is still a much more stable coin than many other coins in the crypto market. 

For example, to understand the decentralized world concept better, let’s say that an American car owner, Tony, buys decentralized car insurance from Dave, who is based in the U.K Smart ensures that every month, a certain percentage is deducted from Tony’s ETH wallet directly to the insurance company. 

However, Tony does not want to show his personal information to the online world. In this case, he offers his NFTS through a zk-SNARK network that allows blockchain participants to validate information without knowing who it’s coming from. Moreover, Dave will receive encrypted tokens with a decrypted message that stakeholders have validated the payment. In the end, the smart contract is successful and doesn’t have to result in Dave having to sue Tony if the payout didn’t happen. 

Furthermore, there are thousands of dapps that are distributed across 16 blockchains, and more than 2,800 of these are on the ETH network. There are hundreds of thousands of daily active users, so don’t be surprised by the number of smart contracts on these apps. 

Ethereum is gaining institutional adoption

Ethereum has been starting to gain quite a lot of adoption in the past years, and this is expected to rise over time since we mentioned the price predictions before. This is at least what the Enterprise Ethereum Alliance (EEA) aims for. 

This alliance is made up of blockchain leaders, innovators, adopters, and many other large institutions across the world. As decentralization becomes even more common in the investing world, you’ll see even more institutions adapt to it and drive up the value and demand for Ethereum. Thus, this is one of the main reasons you’d want to invest in Ethereum in the future. 

Ethereum technical analysis 

Traders use both fundamental and technical analysis before making their bets. Regarding Ethereum, technical indicators make a huge difference and can be a huge indicator of excellent performance. 

Crypto’s volume indicators claim that the number of purchases made is continuing to rise and is high at the moment. Even though the crypto market has staggered for a few months, investors are still rushing to invest in popular coins such as Ethereum, so after the crisis is over, they’ll have very high returns.

Overall, Ethereum is in a spot that will help you make gains in the short and long term, depending on what type of investment goals you have. 

Ethereum is the world’s first platform blockchain 

Yes, you heard us. Ethereum is the first blockchain platform globally and gained its spot in late 2016. Since its launch date, other cryptocurrencies, such as Cardano, have also managed to rise, but none of them have equaled the market reputation of Ethereum. 

This explains why Ethereum is the center of attention when there is a new project, and let’s not forget the difference it has in market cap and value over competitors such as Cardano. For example, a new project called “Ethereum 2.0” will bump Ethereum’s value even higher and give many more advantages over competitors. This won’t only affect its market price but also the market share it has. 

Ethereum 2.0 

Many may think that Ethereum 2.0 isn’t going to happen because of the continuous critics, but the Ethereum project won’t give up that easily. Ethereum 2.0 is expected to solve two problems, one is for reducing transaction costs, and the other is for promoting scalability. 

However, after Ethereum 2.0, there won’t be any miners who are excellent for gas prices that have posed many challenges for oil companies worldwide. So, after Ethereum 2.0 is released, the gas price challenges won’t exist anymore. Additionally, this new project will make Ethereum a more environment-friendly coin. This is also an excellent opportunity to attract environmental investors and institutions wholly concerned about our planet. 

Ethereum’s technology is much more different than Bitcoin 

We all know why you may want to invest in Bitcoin, but why would we consider Ethereum a better investment? 

Bitcoin was initially meant to be a cryptocurrency and is considered the “Godfather” of crypto, but Ethereum is more intended to be a platform for smart contracts. With Bitcoin, you can pay and store value, but with Ethereum, you can tokenize assets, set up and program smart contracts, buy NFTs, and much more. 

Additionally, Bitcoin has a supply limit of 21 million, but Ethereum doesn’t have any. So, if you are looking to use a coin for business purposes, we think Ethereum is much more stable in the long term and provides long-term benefits over Bitcoin. However, let’s not forget that Bitcoin is a scarce coin. 

Ethereum has more developers than any other cryptocurrency 

Ethereum’s competitors, such as EOS, claim that they can outperform Ethereum, but reasoning and doing have immense differences. Until now, there hasn’t been any competitor that has managed to surpass Ethereum in actions. 

Let’s not forget that blockchain development has witnessed significant growth since its beginning. Moreover, it is a skill in demand and one of the fastest-growing skills on freelance websites. 

With many developers supporting it, Ethereum has set up an impressive community. According to cryptocurrency expert Kevin Rooke, more than 90 out of the 100 blockchain projects are launched on Ethereum’s network. 

So, according to history, developers win in this case, and Ethereum is beating its competitors with not much trouble. 

Ethereum has many long-term investors 

One of the key indicators of success when investing is to be part of a project with long-term potential and a large number of people investing in it for the long term. Especially with Ethereum 2.0, many people are looking forward to this project and have high expectations. 

This is a strong indicator that many people are, and Ethereum is considered a long-term investment. Moreover, you can consider Ethereum to hold and increase its value in the long term, making it a good investment at its current prices. 

Ethereum is all over the media! 

The media hype about crypto is all over the place, and let’s not forget about the major price fluctuations it has undergone. Whenever you see a project on the news, it’s most likely going to mean a price increase. Ethereum is gaining lots of attention as of now, primarily due to the rise in gas prices, so this is a long-term advantage for Ethereum. 

Ethereum is a secure blockchain 

Security is a primary concern in the blockchain market because of its long UTXO. However, at this very moment, blockchains are still a Proof-of-Stake, and those looking to compromise would need to generate an insane power level that is nearly impossible to do. 

Even if it shifts to Proof-of-Stake, it would still be near impossible to compromise. This is due to the price of Ethereum and a large amount of Ethereum that is staked. Moreover, even though it’s economically pointless to comprise it successfully, its level of security is a key advantage that makes Ethereum a valuable investment in modern times and the future. 

Ethereum’s programming language is easy to understand 

The growth of Ethereum primarily depends on the number of projects launched on the blockchain. For other people to choose the blockchain, the programming language must be easy to understand. 

The programming language that Ethereum uses is Solidity, which is easy to learn and understand. Hence, those who know programming languages such as C++ and Python can quickly learn this programming language. Moreover, this explains why this language is overgrowing and directly influences the growing value of Ethereum. A pretty good bet for the long term! 

Wrapping it up 

That’s all for this article. These are the top 16 reasons why you should consider investing in Ethereum. Overall, Ethereum is considered a top choice for crypto investors and how it compares to other crypto giants such as Bitcoin. Above all, Ethereum is a unique cryptocurrency built on a network and not just a simple coin that holds value. 

If it weren’t for Ethereum, we most likely wouldn’t have the number of crypto coins we have today, and let’s not forget NFTs! Thanks to Ethereum, we have many more investment alternatives and can profit more in the long term.