Since its launch in 2015, Ethereum has only grown in popularity and the cryptocurrency Ether (ETH) is now all the way up to $2,930. Experts predict that it could even grow in value by up to 400% over the course of 2022.
What are the pros of investing in Ethereum?
- Lower inflation risk: Inflation is a big talking point right now and Ethereum has a build-in strategy for this that isn’t as susceptible to tampering, reducing the risk of the value of your crypto decreasing.
- Liquidity: One of the main reasons people are attracted to Ethereum is that it’s one of the most liquid cryptocurrencies, so you can quickly and easily exchange it.
- Volatility: As Analytics Insight explain, the volatility in the Ethereum marketplace could actually be a positive since smart investors can identity patterns and profit from the volatility.
What are the cons of investing in Ethereum?
In a report from Analytics Insight, they also highlight three main cons of Ethereum, which are:
- Scaling Issues: Since Ethereum serves as a ledger, there can be some breakdowns and hacks, so its scaling issues are a real concern.
- Complicated programming language: Ethereum’s native language can be difficult to understand and there aren’t many resources to help people learn it.
- Volatility: As much as volatility can be an advantage for some, that makes Ethereum a risk for others. The price of Ether (ETH) has fluctuated a lot in the past and may continue to do so.