Cryptocurrencies have fallen over the past six months. Many investors are losing patience with digital assets, but not in the legal and regulatory framework. In addition, those who expected cryptocurrencies to provide a safe haven when inflation rises have been criticized, and some so -called stablecoins are currently unsustainable. .
At the same time, most of the major cryptocurrencies have continued to be in the process of development and their development companies will implement them in the near future. There are many reasons to believe in a market where cryptocurrencies and blockchain systems outperform traditional systems such as finance, payments, and data management. In that case, you need to make sure you have your wallet Ethereum (ETH -7.47%).
The leading platform for smart contracts and decentralized accounting is a no-brainer today. Here is the reason.
Real world use cases
Above all, I believe Ethereum will be the blockchain leader for decentralized applications of the future. Of course, there are other options, and some of them offer the same technological benefits today. Here is an example, two Alele (AVAX -4.75%) a Cardano (ADA -5.53%) provides fully-fledged Ethereum virtual machines that can run smart contracts designed for the old platform-and they’re quick to do now.
However, the Ethereum system is growing as we speak, and a next generation, called Ethereum 2.0, should be available by the end of 2022. After that improvement, compete and the Ethereum network may be hitting Avalanche and Cardano’s operating hours, with prices falling to almost nothing. At the same time, Ethereum’s power usage will be cut by 99%.
Image source: Getty Images.
Ethereum developers see this huge improvement as just a stepping stone on the path to faster, smaller, and more flexible Ethereum clients. That’s what’s needed before smart contracts can change the old school funding and payment systems globally – and Ethereum has a roadmap to get there.
It’s true that competitors like Cardano and Avalanche will continue to grow over time, but I don’t see it as a threat to the Ethereum outcome. But it is a healthy competition that encourages all athletes to achieve important goals in the long run. As a long -term investor, I don’t plan to buy in the first place and wait many years for a big price.
The brand is selling at a very high price
As I’ve seen before, Ethereum has been deprived of a broad market return from high -end and high -end investors in recent months. of the S&P 500 The market index has fallen 17% in the last six months and is more volatile Nasdaq Composite it fell 29% over the same period. As a new and faster developer, Ethereum is even more sophisticated, with a 55%price drop:
Ethereum pricing information by YCharts.
Fixing is sometimes a natural part of the market, and it’s common to see high -flying devices like Ethereum falling harder and faster than traditional asset classes. At the same time, I know that Ethereum will rise again, clear the dust, and return to its old marketing channels. Improving authentication-at-stake will be instrumental, and the rapid growth of the community of software developers associated with Ethereum will be critical to the concepts of this certification.
Ethereum is an investment where you buy on dips, and we’re deaf to a huge trading time right now. You can come back and thank me for this advice in two to three years, once the Ethereum network expansion is complete and decentralized-finance programs start to appeal to regular users.
Anders Bylund has positions at Cardano and Ethereum. Motley Fool has a status and promotes Avalanche and Ethereum. Motley Fool has an advertising policy.