Why I Invested In Ethereum? [2 Min Read]
Ethereum is the number 2 cryptocurrency in the world right when listed according to market cap, and some even believe the coin has the potential to become the number 1 crypto token in the world overtaking Bitcoin. The reason for this is not blindness due to loyalty to that asset but something else.
Ethereum is one of the most versatile blockchain out there. It is compatible to develop decentralised application like exchanges, marketplace, defi systems on it due to possibility of developing a smart contracts. Since these smart contracts ease up the process and automates it, it is very high in demand, and since Ethereum was one of the 1st ones to provide this feature, its value rose.
Also, one of the biggest disadvantage to this blockchain is that it costs a lot in the form of gas fees, the transaction speeds are low when compared to its competitors like Cardano, Polygon Matic etc, however these disadvantages are sure to disappear soon. This is due to a new update which is to be launched on the blockchain soon, changing the methods of operations of it. This will significantly improve its performance in the coming future.
The third reason can be attributed to the fact that it is trusted by many traditional investors and has huge promise in it. It has generally been observed that as soon as a huge sell-off occurs in Bitcoin, that is liquidation happens, the liquidated value is invested in promising projects having higher applications like that of Ethereum, to play a safe game.