Buy Ethereum? A look at Opportunities and Risks

buy-ether-or-waitTrue, a website about Ethereum is likely to come out in support of buying Ethereum (the technically correct name is Ether as Ethereum is also the name of the platform, but both are widely used for the cryptocurrency). However, we want to show the pros and cons, the opportunities as well as the risks of buying Ethereum. The question whether to buy Ethereum or not will be answered as objectively as possible.

Buy Ethereum or not? The disadvantages, risks and potential problems

First, some disadvantages, risks and possible problems with the Ethereum project will be discussed. One disadvantage is, for example, the amount of Ether that is released. The large amount currently released ensures that the price is kept low and the market is saturated. The supply exceeds the demand by far and as long as it is questionable what the future of mining looks like and whether this amount of Ether will continue to be distributed, it is unlikely that the Ethereum price will rise sharply.

Ethereum is by definition an altcoin, an alternative coin, a variant of Bitcoin. Bitcoin is therefore the original and any other currency can be seen as a risk factor while overshadowed by Bitcoin. The demand is usually never as high and the (infra-)structures not so well developed. However, it should be noted that Ether, the digital currency of Ethereum, is only part of the Ethereum project. Bitcoin was created with the goal of being an alternative to currencies and banks. Ethereum, on the other hand, is primarily a programming platform that can be used to develop, use and implement smart contracts.

Ethereum is thus much more than “just” a digital currency and even the developers have problems defining or limiting Ethereum. Ethereum is for everyone what they want to make of it. Existing Bitcoin (infra-)structures can also be used and even expanded and if Bitcoin is accepted by the masses, the way is paved for Ethereum as well.

Behind Ethereum is a development team. That team is jointly responsible for the future course of the project. It could be argued, therefore, that Ethereum is at least to some extent centralised.

Furthermore, Ethereum could reach limits of some sort or other. Above all, legal limits could restrict the project. The Internet of things and smart contracts create new, unknown facts that may not be covered by laws and thus create a legal gap. This cannot be desirable in any rule-of-law country, which is why either an adaptation of the laws must take place or Ethereum is put in its place. There may also be other problems, such as applications that cannot be used because they can only be understood by technically experienced people.

Buy Ethereum or not? The opportunities and advantages

However, every coin also has its downside and Ethereum certainly also offers a number of advantages and opportunities. Ethereum or Ether is a relatively new digital currency in the world of crypto currencies. The project started in 2014 and the first concept was implemented in 2015. In this short time, Ethereum has managed to become the second largest and second most popular digital currency. For some time now, Ethereum has ranked behind Bitcoin since the phase in which Ethereum was still in the beta (Frontier) phase, in which the basic structure of Ethereum was built up. This shows that there is a lot of potential in the digital currency and the project.

The subsequent phases and above all Metropolis should become an enormously important milestone for Ethereum. In this phase, mass-produced applications will be provided, which should lead to a broader use of Ethereum. If this scenario occurs, this will lead to a significant price increase for Ethereum. In addition, if daily inflation is reduced or even stopped, Ether may become a more attactive investment likely leading to a higher Price for Ether. Ethereum could be more successful than we can now imagine. Smart contracts and the Internet of things can revolutionize finance, business and even everyday life. Well-tried structures may be fundamentally changed.

Conclusion: Buying Ethereum or not?

All in all, in our opinion, the positive aspects and opportunities of Ethereum predominate. This conclusion is mainly based on the technical possibilities offered by Ethereum. In addition, one hears again and again crazy and unusual stories of Bitcoin buyers and how Bitcoins were acquired for a small amount of money. This investment was forgotten by them and after some time the Bitcoins had increased their value many times over.

Ethereum could also provide for many such stories. A purchase or constant purchases with a small amount of money ensure that the risk and opportunities are balanced. Set yourself a certain target from the beginning in the form of an Ether set (e.g. 100 Ethers) or a money supply (USD 500 eg). This way, you never invest too much or risk betting more than you can afford to lose.

You may already have answered the question “Buy Ethereum or not?” for yourself – at least if you have read the article up to this point – and you are just waiting for the final push to buy Ethereum.

For buying Ethereum you can use trading platforms such as eToro. An alternative for which you do not have to spend money is the use of cryptocurrency faucets.