Ethereum hit 3K — Is it too late to buy?
One of the most asked questions when a stock or cryptocurrency reaches a new all-time-high and catches the public’s attention is if it is too late to buy. The best way to answer that question is to go even further back in order to catch you up to speed.
The first question you should be asking if you’re new to this cryptocurrency is this — what is Ethereum?
Ethereum was created by Vitalik Buterin and launched in 2015. Ethereum is predicted to surpass Bitcoin, which isn’t that much of a far-fetched prediction as Ethereum has a much bigger use case than just finance.
Bitcoin is the first ever crypto token built by Blockchain Technology. Ethereum is a network on the Blockchain that creates crypto tokens and much more. Ethereum enables to development of thousands of different applications in one single platform. It has the ability to decentralize (cut out the middle man, transparency in transactions, un-hackable security) any service that is centralized like loans, online transactions, voting, and etc.
Ethereum runs programs with smart contracts. Smart contracts are applications that run exactly as programmed without any possibility of downtime, fraud, third party interference, or censorship. Ethereum has it’s own crypto token called ether that people can buy to trade digital currency. It also has ERC-20 tokens like Tether (USDT), Chainlink (LINK), Dai (DAI) and more built on its network.
Although decentralized networks are pretty cool, nothing is perfect. Ethereum has a few flaws that people are concerned about like their high gas fees. Ethereum transactions run on gas, kind of like a car does, where a person who wants to initiate a transaction on the Ethereum network must pay a gas price. And the gas price determines the speed of the transaction. The higher the price, the faster the transaction. And there have been complaints that Ethereum fees are pretty expensive, which allows Ethereum’s competitors to have somewhat of an advantage. Ethereum’s competitors are able to be faster and cheaper in price though because they are not completely decentralized like Ethereum is.
Ethereum 2.0 is supposed to resolve the issues that Ethereum has and improve the network in order to stay ahead of the other blockchain networks.
Now on for the big question — Is it too late to buy?
The answer is it is entirely up to you! At the end of the day, I can’t give any financial advice and no one can guarantee where the market is going to go next. But we are still at the beginning of cryptocurrency and Blockchain technology and crypto investors believe that Ethereum is not anywhere near it’s potential value. Another cryptocurrency to take a look at is Ethereum Cash, as it is directly correlated with Ethereum and has reached an all-time-high of $57 this past month.