Apart from Ethereum being one of the best cryptocurrency to invest in 2020, it is a great digital asset to look out for.
Ethereum price prediction 2020 will prove to be the most remarkable year for Ethereum and other cryptocurrencies as well.
DApps will see a huge adoption in this year. In the first quarter, the highest can be $1100, the minimum being $929 in January. The second quarter can revolve around the $1600 mark.
Ethereum is not just a digital currency. It is more, Ethereum offers something special — by using Ethereum’s platform, developers can build their own cryptocurrencies.
Imagine that you would like to build a blockchain-based solution for managing the supply chain of your business. Well, thanks to Ethereum, you don’t need to start from the beginning. Instead, you can just build an application on Ethereum’s blockchain.
Ethereum makes it much easier for new blockchain projects to launch.
So, is Ethereum your next best cryptocurrency to invest in 2020?.
I recommend that you think about adding Ethereum to your list, as I think it could be one of the best cryptocurrency to invest 2020.
Let’s dive in!
What is Ethereum? A Short Intro
Simply put, Ethereum is a smart computer.
Perhaps you’re saying to yourself: aren’t all computers smart?
Well yes. But you know how we had phones, and then we had smartphones? This is like that. Ethereum allows computer programs to run “smart contracts.”
Smart contracts are computer protocols that digitally facilitate, verify, or enforce the performance of their code. With a smart contract, you don’t need a third party to perform credible transactions. And because these smart contracts live on blockchain technology, they are trackable and irreversibl (Forsage, Lionshare, Millionmoney; Official Ethereum smart contracts).
A new era of computer programming, digital ownership, and other innovations are being introduced thanks to the smart contract capabilities of Ethereum.
You understand — Ethereum is the future. But is Ethereum a good investment only because it innovates? Not necessarily.
So here they are, the reasons why Ethereum is a good investment for the future;
Do you know what an ‘early adopter’ is?
It’s the term for someone who adopts a new technology while the technology is still fresh and new. It may have bugs, but for an early adopter, the chance to experiment and use new technology is worth the hassle.
Ethereum is new. It came out bare a decade ago. It has bugs here and there, sure. But for people who are willing to be involved and try this new technology — it can prove quite profitable.
So, should you buy Ethereum? Here are 5 reasons to take action and become an early adopter and investor
Ethereum could be a world computer
The reason Ethereum gained such massive popularity and almost flipped places with Bitcoin in June 2017 is due to its ability to run smart contracts.
Ethereum is poised to usher in a new era of applications — decentralized applications (DApps). These DApps could run and secure code that will help businesses perform better around the world. These DApps will run on Ethereum — so it’s not too late to buy Ethereum and participate.
Take, as an example, assets: homes, artwork, luxury cars, etc. Ethereum’s smart contracts can secure ownership of these items. Foreign investors and people around the world won’t need to run through the bureaucracy of foreign nations system in order to own a home or artwork in another country. They can use a smart contract built on Ethereum. And they can pay with Ethereum too.
BLOCKCHAIN, ETHEREUM, CRYPTOCURRENCY.
Even those who are not familiar with blockchain are likely to have heard about Bitcoin, the cryptocurrency and payment system that uses the technology. But that’s not all. Ethereum, that also uses blockchain, which is predicted by some experts to overtake Bitcoin this year.
Ethereum is an open-source public service that uses blockchain technology to facilitate smart contracts and cryptocurrency trading securely without a third party. There are two accounts available through Ethereum: externally owned accounts (controlled by private keys influenced by human users) and contract accounts. Ethereum allows developers to deploy all kinds of decentralised apps.
Even though Bitcoin remains the most popular cryptocurrency, it’s Ethereum’s aggressive growth that has many speculating it will soon overtake Bitcoin in usage.
Ethereum co-founder, Vitalik Buterin said, “I thought [those in the Bitcoin community] weren’t approaching the problem in the right way. I thought they were going after individual applications; they were trying to kind of explicitly support each [use case] in a sort of Swiss Army knife protocol.”
He envisioned a different way.
Buterin was introduced and intrigued by blockchain technology when he got involved in Bitcoin as a 17-year-old programmer in 2011 and co-founded Bitcoin Magazine. He started to imagine a platform that went beyond the financial use cases allowed by Bitcoin and released a white paper in 2013 describing what would ultimately become Ethereum using a general scripting language.
The key differentiator from Bitcoin was the platform’s ability to trade more than just cryptocurrency.
In 2014, Buterin and the other co-founders of Ethereum launched a crowdsourcing campaign where they sold participants Ether (Ethereum tokens) to get their vision off the ground and raised more than $18 million. The first live release of Ethereum known as Frontier was launched in 2015. Since then, the platform has grown rapidly and today there are hundreds of developers involved.
Ultimately, Buterin hopes Ethereum will be the solution for all use cases of blockchain that don’t have a specialised system to turn to.
THESE ARE SOME OF THE AFRICAN CRYPTO COMPANIES;
Luno is a leading global cryptocurrency company on a mission to upgrade the world to a better financial system. Headquartered in London with regional hubs in Johannesburg and Cape Town, Luno now has a team of over 350.
With over 4 million customers (wallets) spanning more than 40 countries, Luno’s products and services make it safe and easy to buy, store and learn about cryptocurrencies like Bitcoin and Ethereum.
Other Companies include, Patricia, Buycoin
HOW IS ETHEREUM DIFFERENT FROM BITCOIN
While there are many similarities between Ethereum and Bitcoin, there are also significant differences. Here are a few:
- Bitcoin trades in cryptocurrency, while Ethereum offers several methods of exchange, including cryptocurrency (Ethereum’s is called Ether), smart contracts and the Ethereum Virtual Machine (EVM).
- They are based on different security protocols: Ethereum uses a “proof of stake” system as opposed the “proof of work” system used by Bitcoin.
- Bitcoin allows only public (permissionless or censor-proof) transactions to take place; Ethereum allows both permissioned and permissionless transactions.
- The average block time for Ethereum is significantly less than Bitcoin’s: 12 seconds versus 10 minutes. This translates into more block confirmations, which allows Ethereum’s miners to complete more blocks and receive more Ether.
- It is estimated that by 2021 only half of the Ether coins will be mined (a supply of more than 90 million tokens), but the majority of Bitcoins already have been mined (its supply is capped at 21 million).
- For Bitcoin, the computers (called miners) running the platform and verifying the transactions receive rewards. Basically, the first computer that solves each new block gets Bitcoins (or a fraction of one) as a reward. Ethereum does not offer block rewards and instead allows miners to take a transaction fee.
ETHEREUM BEST CRYPTOCURRENCY TO INVEST IN 2020, WHY?
So, what are the reasons for getting involved in ethereum?
- It’s growing in popularity
Ethereum has wasted no time in establishing itself as the second largest digital currency over the past couple of years. It was the brainchild of Vitalik Buterin who came up with the idea in 2013 when he was just 19. There are now thought to be millions of people setting up crytopcurrency wallets that hold this currency, although arguably its main attraction is the fact third party applications can also run on the network.
- Valuations are on the rise
In a similar way to bitcoin, the valuation of ethereum’s currency, known as ether, has risen over recent months as people have started to embrace digital currencies. It has been publicly traded since 2016 and the issuance of ether is limited to 18 million per year. At the moment, one ether is worth more than $700.
- It could be the future
Digital currencies such as ethereum have the potential to shake up the financial system in the same way Uber and Airbnb have done to their respective industries. Trust in traditional markets is low in the wake of the financial crisis a decade ago and people are increasingly comfortable with the online world.
- You can trade on exchanges
The good news is that there are a number of cryptocurrency exchanges that offer ethereum on their platform so you have some choice. The most renowned, Coinbase, faces competition from exchanges such as buyvirtualcurrency, which provides individual account managers, excellent customer service and any coin of your choice.
- It can already be used to buy goods
An increasing number of organisations are now accepting bitcoins as payment – and the number embracing ether is also expected to increase over the next few years as people become more comfortable with cryptocurrencies. The online retailer Overstock.com, based near Salt Lake City, announced during the summer that customers could use cryptocurrencies to buy from its store, including furniture, bedding and DIY.
Should I Buy Ethereum? 5 Reasons Why Ethereum is a Good Investment in 2020
I’ve been where you are.
Back in time, I heard of Ethereum almost as much as I heard of Bitcoin. And I wondered: should I buy Ethereum? Is Ethereum a good investment?
I heard from many reputable sources that lots of innovations and cryptocurrencies were built on Ethereum. But I was still wondering whether or not I should invest in Ethereum.
In this article, I’ll cover why Ethereum is valuable, whether or not Ethereum is worth buying in 2020, what is the best time to buy Ethereum, whether you should invest Ethereum now or if it is too late, and more.
Your all-in guide to help you make the best decision