If you use social media or watch the news, you would know that cryptocurrency is all the rage, but with so many types of cryptocurrencies available in the market, it can be confusing to choose one. However, Ethereum is coining itself (no pun intended) and has become one of the most famous currencies out there. So, with such hype, you have to conduct research and be aware of the pros and cons of investing in Ethereum. Having said that, are you ready to check them out?
To begin with, Ethereum allows global transactions, and the best part is that there is no need for an intermediary. It means that Ethereum is carving an efficient and low-cost way of sending out money, irrespective of the borders. It has the capacity of supporting secure yet quick transactions. Consequently, it allows the users to conduct their business and transfer the money with the most minimal charges.
The exchange rate might differ with which platform you are using, but one thing is for sure, there are no over-the-top charges. In addition to this, Ethereum is constantly working to create a decentralized and global financial infrastructure.
If you are someone who is involved in the direct mining of cryptocurrency, Ethereum is a good option to start with. This is because Ethereum is young which eases the mining but it also has more miners. This means that more people will get a reward whenever they mine the coin. In addition, when more miners come in for some currency, the value will be higher which eventually increases the prices and demand. All in all, it’s always quicker than mining Bitcoin or using bitcoin investment and everything you need to be familiar with.
Every transaction on this cryptocurrency costs some part of Ethereum, which is known as gas. This ensures that there are no spammers in the network. Similarly, more investors will be motivated to take part in investing in this cryptocurrency. Last but not least, Ethereum mining doesn’t release much carbon into the environment, making it a more eco-friendly choice.
When we look around, we see that JP Morgan and Microsoft have shown interest in Ethereum and have also invested in it. This means that they will use its blockchain and will thrive to keep up the demand, which will eventually enhance the value. In addition, the companies will use Ethereum’s network to create their services and products, making it more usable and accessible to the public and more people will be bagged to invest in it. Therefore, Ethereum will have higher consumer confidence, creating a strong backing that every investor looks for.
The most surprising thing about Ethereum is that the servers are not hosted by one party, promising zero downtime. Similarly, it doesn’t need to go through a server upgrade or maintenance, eliminating the need to shut it down, even temporarily. This is another reason why its popularity is increasing by leaps and bounds.
Ethereum is built over the blockchain that’s capacitated to process every transaction within a matter of seconds which used to take hours and days in the past. Sure, the media has been promoting the ICOs, there is a more practical aspect to this technology, including monetary transactions through the smart contracting features.
Since Ethereum has an open-source configuration, everyone has the ability to review the coding and identify errors in the network. In fact, you can also provide suggestions to enhance the functionality, resulting in more efficient, secure, and high-strength currency. In addition, it boasts a decentralized and flexible nature, making it suitable for long-term expansion and development. Not to forget, it is known for its diversity that empowers the users to create their own applications and features.
While there are great upsides to this decentralized cryptocurrency, there are some downsides that you must focus on before investing in it or mining it. Some of them include;
- There is a limit for transactions because when a lot of people are conducting the same transaction, it can slow down the process or push you out of the loop
- The transactions are not free as you have to pay for gas, as we already mentioned. However, it’s minimal, so we don’t think it should be an issue
- There is price volatility associated with Ethereum because everyone has started treating it as an investment rather than a currency
To summarize, it’s quite clear that the pros take leverage over this currency, making it a wise choice to invest in. So, as long as you are aware of the downsides, you should be able to make great profits!