Should I Buy Ethereum Now in 2018?
“Should I buy Ethereum now in 2018?” Some say Ethereum will surpass Bitcoin in 2018 (market capital) and we believe this is somehow expected to happen by the end of the year. There are a number of key milestones upcoming for the protocol itself and it is pretty an exciting year for Ethereum. This is why we believe it is still a good time and not too late to buy Ethereum in 2018 if you are treating it as a long-term investment.
Disclaimer: This article should not be taken and viewed as investment advice, but only information and opinions. This article is for information and illustrative purposes only.
Should I Buy Ethereum Now in 2018?
There are several reasons why Ethereum will continue to grow and probably a good long-term investment.
At the time of writing, Ethereum is already being tested by 40 banks via Microsoft and have produced a return of more than 10,000% for investors since launching on 30 July 2015. Several industry giants including JPMorgan Chase, Microsoft, and Intel have also backed Ethereum, similarly believing that the Ethereum blockchain will allow companies to do far more than just transfer money between people. The mainstream public is just starting to become aware of Ethereum, but Ethereum already has the backing of major global corporations.
Other than that, we have seen Ethereum transitioning into a platform to build decentralized applications. Most the problems that the Ethereum Foundation works to solve are much more technical than what ICOs are building. This is because Ethereum wants to be the go-to platform for blockchain application developers as opposed to an application provider itself.
Moreover, adoption and awareness of Ethereum’s presence are still relatively low as compared to Bitcoin. Use cases are still rare in everyday’s life. There is plenty of room for growth and some of the features are still in development and we can expect a fully working ETH in three to five years, which will dramatically increase its value.
Smart contracts are a true killer feature. Something that can change the world. Nobody has any idea of all the possible applications of such disruptive technology. We have seen p2p loans, digital decentralized autonomous organization (DAO), and ICOs, but it is only the beginning.
Will ETH Be Higher Than BTC in 2018?
Unlikely that the value of ETH will surpass BTC in 2018.
Bitcoin was developed as a store of value. It is meant first and foremost to be used as a currency, and that is what it is good at. People know Bitcoin to be the definition of a blockchain and when investors go to invest in cryptocurrencies, they think about Bitcoin first.
“Bitcoin has the purpose, and Bitcoin has the branding.”
The two coins are taking very different paths, my best guess for BTC is that it’ll end up as a store of value, a commodity unless the team tackle payment processing capacity and time. That simply means Bitcoin will remain the reference value in the crypto world. Just like we have observed in the market, the prices of altcoins follow the trend of bitcoin.
BTC is the top coin being traded for other altcoins in terms of market cap, volume, and general popularity, it is thus at the center of the crypto economy and has some gravity behind it. When Bitcoin goes up, the altcoins follow slowly (after going down and then lagging behind). When Bitcoin goes down, the altcoins seem to follow perfectly or even exaggerate the decline.
The real reason why the price of ETH likely won’t be as high as BTC is that it needs to increase approximately 900% relative to BTC in order to reach parity.
According to most experts in cryptocurrencies, it is not too late to buy Ethereum in 2018 and it may be just the beginning. The main reason why Ethereum gains more attention is that of its innovative approach which is related to more decentralization and more complexity of transactions.
Ethereum hasn’t come close to mainstream adoption yet, but there are hundreds, possibly thousands of applications in development. As these projects come online over the next few years, the price of Ethereum could reach $3,000 to $5,000 by the end of 2018.