Is it too late to buy this high Cryptocurrency?

Since its announcement to the public in July 2015, Ethereum (ETH -7.03%) the monster has returned 106,000%, seriously hurting the stock market. The complexity of digital assets may be intimidating to some, but the potential is life -changing, which means serious investors shouldn’t give up on the sheer power of this new industry. If you decide to convert cryptocurrencies to you, however, you may need to take the time to figure out the right time.

With that kind of crazy return, you might think the sale of Ethereum is too late, taking in a market cap of $ 335 billion. I think that idea is flawed. Here is the reason.

The trader works at home using the bridge.

Image source: Getty Images.

Ethereum is a blockchain project

One of the advantages of Ethereum over the world’s largest cryptocurrency is, BitcoinWhich is what can be used smart contracts. This process can eliminate transactions between two unknown parties due to the computer code itself. There is no need for trust and consultants such as banks, lenders and lawyers.

With this kind of programmability, Ethereum has become a blockchain leader when it comes to decentralized applications (dApps). From the decentralized money (DeFI) and playing social media and non-fungible signals (NFT), Ethereum is the most popular site because of its first-of-its-kind functionality. According to State of the Dapps, there are 2,925 total dApps running online, with $ 214 million in total sales in the past 24 hours (as of Feb. 18).

Of all the blockchain projects out there, Ethereum has the top developers every month working on it, with 4,000. As a result, it is clear that cryptocurrencies can provide real value to the world and are not just speculative assets.

Design for speed and scalability

However, with so much demand for the Ethereum system, there is a growing demand for the end of the expensive market, or “gas,” payment. Because Ethereum can only handle about 14 transactions per second (TPS), a single cost was between $ 20 and $ 50 in the past few months. For Ethereum to go mainstream and be used frequently, it needs to be fast and easy.

Ethereum is expanding from its current authentication-of-work system to one make sure Other types of work. The latter allows Ethereum owners to secure a portion of their security in order to help verify transactions on the network. It is more energy efficient and can be implemented faster.

What’s new, ETH 2.0 was first introduced, has been postponed and the rollout is now scheduled for June. And with the addition of shard chains by 2023, which will break the system into smaller chunks to increase speed and capacity, Ethereum will be able to generate up to 100,000 TPS. At these speeds, the potential for dApps skyrockets.

Cryptocurrencies are coming soon

Despite all the thought that the industry has these days, cryptocurrencies are still in their infancy. According to data from TripleA, there will be more than 300 million crypto users worldwide by 2021. There will be about 5 billion crypto users worldwide, so it’s a long way to go. crypto related to access. This situation represents a truly significant development path to bring more people to the crypto economy.

With continuous improvement in technology, major usage and usage issues, and clear resolution, it’s not hard to believe that Ethereum’s market cap can be eliminated. $ 1 trillion by 2025. Compared to his past, this is a huge delay. However, that return is much greater than the market gain.

With the cryptocurrency market gaining momentum in recent months, at around 33% since the beginning of November, this may be a good time to add an Ethereum to your portfolio. It has never been too late to access this growing digital wealth.

Neil Patel owns Bitcoin and Ethereum. Motley Fool owns and promotes Bitcoin and Ethereum. Motley Fool has an advertising policy.

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