Updated: Nov 26, 2020
Recently, cryptocurrencies are what everyone is talking about and you’re not the only one wondering what they are and how they work.
Cryptocurrencies are digital tokens used for exchange and making payments, ownership of these coins are registered in computerized databases called wallets.
Although they have been here for quite some time, the spike in interest-only began a few years back as people just recently noticed the great interest that can be derived from investing in this digital currency. With this great interest also come great risks taken as cryptocurrencies can easily plummet or skyrocket in price; depending on the supply and demand at that point in time.
Speaking of skyrocketing prices, we have seen a great increase in the cryptocurrency “Ethereum (ETH)”, there are even speculations that Ethereum would surpass Bitcoin in the near future.
What is Ethereum/Brief History?
Ethereum is currently the second most valued cryptocurrency, falling behind bitcoin by over ten thousand dollars; it works in a decentralized open-source network making use of smart contracts to function.
In 2013, Vitalik Buterin (A renowned programmer) proposed the development of building a decentralized application that is accessible anywhere in the world (Ethereum). Ethereum went live on 30TH July 2015 with 75 million coins, these coins currently make up 65% of the coins in circulation (April 2020).
Vitalik Buterin has recently announced the development of Ethereum 2.0 which would see some upgrades to the current Ethereum; like the transition from proof of work (PoW) to proof of stake (PoS).
At this point, you are probably confused as to what a good number of these terms mean.
In simpler terms, Ethereum operates uses proof of work by requiring some processing work from the service requester (Computer) in selecting the creator of the next block, this is similar to bitcoins’ mining process. Proof of stake would operate by randomly selecting the creator of the next block.
Acquiring ether differs by country of residence and by the currency being used by the seller. You have to find somebody on the web or in-person that wants to exchange ether for either bitcoin, cash, or other cryptocurrencies.
There's also the choice of meeting face to face to purchase or sell ether, particularly if you are living in a city that often has ethereum meetups.
Although, Ethereum meetups are not common in less populated regions.
There is also the option of buying ether through websites and applications that sell ether.
Bitcoin is generally the most utilized digital currency, and individuals around the globe are bound to prefer to use it in trading ether. Thus, on the off chance that you want to purchase ether, you might need to buy bitcoin and trade it in for ether; since purchasing bitcoin is quite easier than purchasing ether.
After buying Ether, you would need a secure and safe place to store your ether. There are 2 ways to do this; through Hardware wallets and Software wallets:
Hardware wallets are most times small devices which you can easily carry around, this can be said to be the most secure way of storing your ether as it is free from online hacks and possible crashes, this is because a hardware wallet would not be online most of the time. Hardware wallets would work as a disadvantage for you if you frequently use your ether.
Hardware wallets can also come in the form of a slip of paper, this can be done by printing a private wallet key on a piece of paper. A vulnerability of this process is the need to generate keys, this key is generated from sites and if this site is hacked, it leaves your wallet vulnerable to theft.
Software wallets also come in 2 forms; desktop wallets and mobile wallets
Desktop wallets work on your laptops or personal computers. They are gotten by downloading an ethereum client (a duplicate of the ethereum blockchain). You can utilize a light client or download the whole Ethereum Blockchain on a full client. While the first choice is simpler, the later gives additional security, as it needn't bother with miners to send them exact data - they approve exchanges themselves.
Mobile wallets are now and again alluded to as 'light' clients, as they don't expect you to download the whole Blockchain to work. Rather, data about the present status of the system is gotten from miners. Those wallets are extraordinary for utilizing them in a hurry, basically allowing you to get to your Ether whenever, as long as you have an internet connection. In any case, as these clients seem to be 'light,' they are simpler to hack.
The light client alternative is more helpful, yet not exactly as protected. Full ethereum clients offer a safer method of accepting exchanges since they don't have to confide in miners to send them exact data – they approve exchanges themselves.
Ethereum Price History
When Ethereum launched as an ICO in 2014, it was valued at $0.3/ETH or 2000ETH/BTC, Below is a summary of the Ethereum price chart from January 2016 to July 2020
Today, ethereum's mining procedure is nearly equivalent to bitcoin's.
For each transaction block, miners use PCs to continuously guess solutions to a puzzle until the answer is found. Cheating at this game is impossible. It is extremely unlikely to produce a counterfeit answer. That is the reason this strategy/process is referred to as ‘proof of work (PoW)’. Then again, it takes practically no effort for others to check that the hash value is right. A block is discovered by a miner roughly every 12–15 seconds.
Speculations & Predictions
From the above information, we can see that Ethereum hasn't gotten as much consideration as Bitcoin. By absolute market capitalization, Ethereum is one of the most required cryptocurrencies on the planet today. Since hitting $1,400 in January 2017, Ethereum hasn’t even gotten close to a thousand dollars. On the other hand, since December 2019, ethereum has almost tripled in value, rising from a low of $128.72 to nearly $400.
There are a lot of discussions concerning what the future has for Ethereum, particularly since the cryptocurrency is about to experience a monstrous update pretty soon. First of all, a few specialists are of the supposition that ETH will effortlessly outflank BTC during 2020. On the other hand, there are still a few cynics who have the mindset that the progressing bull run will be brief, and Ether will probably drop down to less than a hundred dollars before the year's over.
While the cost of Bitcoin keeps on being the greatest in the business as it keeps on holding over 60% of the overall industry market, many estimate the cost of Ethereum in USD to soar and increase a lot quicker than Bitcoin.
This Ethereum price prediction list incorporates the hopeful and negative standpoints from experts, old investors, and speculators in the crypto market.
Crypto Rating —$11,000 by 2025
WalletInvestor — $207 by July 2021
Slant Analytics —$500 before the year ends.
James Todaro — 1 Trillion Dollar Market Cap Eventually
Crypto Research Report — a stable price for the rest of 2020 but to increase to $3,500 by 2025
Nigel Green — $2,500 before the Year's over
Brian Schuster — $100,000 by Late 2024/Mid 2025
CryptoGround — Stability around the $257 mark by 2021
30 Rates — $700 before the End of 2020
Most experts accept that the forthcoming Ethereum 2.0 update has had a great influence on the recent price spike of Ethereum. However, it is likewise important to take note that as more people and investment agencies start to comprehend the usefulness of blockchain, DeFi, and so on., we will keep on seeing an increase in the use of ETH. Thus, it would not be freakish to imagine that one Ether could be priced at $5,000 in the coming years. No one knows what the future has for the crypto market, so all we can do at this point is to patiently monitor the market.
The Ethereum Price Predictions list displayed above is not an investment recommendation or anything connected with such. With the crypto market or any investment, past performances are not indicators of future outcomes. All crypto investments include high risk and individual speculations may differ. Each cent is at risk when you use it to purchase Ethereum — you can lose a little or the entirety of your cash.
I would leave you with one final statement which is the number one rule of investing. Do not risk more than you can lose.
Price of Ethereum 2016-2020 https://www.statista.com/statistics/806453/price-of-ethereum/
Top 10 cryptocurrencies by market capitalisation. https://finance.yahoo.com/news/top-10-cryptocurrencies-market-capitalisation-160046487.html
Tapscott, Don; Tapscott, Alex.The Blockchain Revolution: How the Technology Behind Bitcoin is Changing Money, Business, and the World.
Ethereum Launches https://blog.ethereum.org/2015/07/30/ethereum-launches/
Ether Supply Growth Chart https://etherscan.io/chart/ethersupplygrowth Retrieved 9 January 2020.
Ethereum (ETH) price, charts, market cap, and other metrics https://coinmarketcap.com/currencies/ethereum/
Ethereum Block Explorer – Supply and Market Capitalization https://etherscan.io/stat/supply
Ethereum Cofounder Joe Lubin Talks Trump, Blockchain's 'Frankenstein' And Willingness To Work With China https://www.forbes.com/sites/michaeldelcastillo/2019/11/09/joe-lubin-talks-trump-blockchains-frankenstein-and-willingness-to-work-with-china/#41012c8778bc
Ethereum Wallets https://cointelegraph.com/ethereum-for-beginners/ethereum-wallets