Is Ethereum a Good Investment in 2022?

Amongst the best known and strongest altcoins in the world, Ethereum has continued to grow in value and acceptance. 

Launched in 2015, Ethereum wasn’t created as digital money but a decentralised computing network platform that adopts the features of blockchains to run a huge variety of applications. These include games, databases, financial tools and much more. 

Ether or ETH is the native coin of this blockchain that’s used as a digital currency either as a means of investment, donation, or to simply buy goods and services. 

Ever since its creation, Ether has continued to grow, sometimes at a rate as high as 300% and increased acceptance from businesses and investors. This makes it the second-largest currency in the world after Bitcoin. In the first week of February’ 2022, its price hovered above $3,000! It is advisable to check Ethereum price INR before investing. 

So, will Ethereum ride the same sentiment in 2022 also? Will it be worth your monies? Read on to know more:

1. Ethereum blockchain is programmable: Ethereum is not only in its early life stages but also promises great growth. This is primarily because Ethereum Virtual Machine (EVM) is a decentralised open-source technology on which most of the crypto applications run including NFTs, metaverse, and decentralised finance. This superior technology is always a great thing to invest in and continues to attract interest from institutions and miners.

2. Constant innovation: When in 2017, the crypto bubble broke, Ethereum bounced back after a small initial setback. This is because its blockchain continues to innovate almost every quarter. Things such as microgrids, crypto collectables, home mortgages, recording health care data and even charging stations for electric vehicles, things continue to get fascinating at Ethereum. 

3. It supports decentralised Internet: With all the major online platforms exercising their right to censor, hide, or modify content, it’s often the originality that gets lost. But with Ethereum, the data gets stored on its blockchain that works on smart contracts and dApps, it stays alive and uneditable for as long as the Ethereum blockchain exists and until the community vetoes it. 

4. Switch to faster protocols: Ethereum is shifting from proof-of-work (PoW) to proof-of-stake (PoS). A change in this protocol translates into more transactions per second. Not just this, the speed at which the transactions get completed also increases manifolds. Come next year and the Ethereum blockchain would require 99% less energy while completing its transactions. 

5. Faster liquidity: Ethereum is one of the world’s most liquid capital when it comes to investments. This is due to the online brokerages, exchanges, and trading platforms on its blockchain. This allows investors to smoothly and quickly redeem ETH into regular money or capital, with low transaction fees. This high liquidity makes it an excellent investment option in the long run. 

6. Unlimited coin supply: Unlike the more popular Bitcoin that’s capped at 21 million coins in total, Ethereum has an unlimited supply. So, there’s no risk of your stack of Ethereum running out. That’s not all, it also has a transparent functioning without the interference of any intermediaries or government-led regulations. 

7. Patterned growth: Just like any other digital currency in the world, Ethereum is also vulnerable to price volatility. However, if you are an experienced investor, you can easily read through the cyclical patterns of the markets and capitalise on profits whenever market conditions allow. The growth of cryptocurrency in India is really interesting.  Look for opportunities to do your investment at the right time.

With so many advantages, Ethereum is an excellent option for long-term investment. However, to make it work for you, set your objectives of investing first. Also, know your risk appetite, buy it from a reliable cryptocurrency exchange and be patient with your investment.