IS ETHEREUM THE BEST CRYPTOCURRENCY?
The question is, "Will the world adopt a decentralised computing platform? And if so, is the answer Ethereum?" For starters, it's important for those investing in Ethereum that the technology on which it's based on gains wider adoption. If Blockchain and Cryptocurrency can grow in significance and establish themselves as a viable next gen computer programming method and an alternative to the current banking systems then the market opportunity for all budding Cryptocurrency and Blockchain projects is huge! So, is Ethereum a good investment? Here are the three things that have helped me decide:
1) WILL CRYPTOCURRENCY SUCCEED?
Unlike almost all private companies and banking systems in place today, cryptocurrencies typically use decentralised controls. Decentralisation in a time where people continue to learn the extent of how much the government and media can control what we see / hear seems like an important progression.
2) WHERE DOES ETHEREUM FIT IN ALL OF THIS?
There's no doubt in my mind that we're witnessing a new era of computer programming based on Blockchain technology. One key function of this innovation is the reform of digital ownership via the ability to create smart contracts. The use of these contracts to securely run decentralised apps (Dapps) especially related to Finance (DeFi) is being touted as the best use case of Blockchain technology (as oppose to using crypto as a store of value). In fact, the World Economic Forum (WEF) predicts that 10% of global GDP in the form of trade agreements, energy sharing, mortgages and business transactions could be performed on Blockchain technology within the next 10 years. Ethereum pioneered this space and in doing so has gained an impressive reputation from investors and corporations making it the most likely platform for this to occur. Despite what people may think, it's unlikely that only one cryptocurrency will prevail in this space though and it's far more likely that there will be many winners in the same way that Palo Alto, Zscaler, Crowdstrike and others are successfully sharing the cybersecurity industry.
3) ARE THERE ANY CONCERNS?
As mentioned above, barriers to entry remain low and the "Ethereum killers" are out there. Rival platforms such as Cardano boasts of better scalability & security, EOS brags about speed whilst Cosmos works on building superior unification.
Secondly, losing your Ethereum tokens (ETH) is a real problem. A private key must be used in order to access your cryptocurrency and, although this is designed to protect you from hackers, there is the possibility that if you misplace this key then will lose access to your funds forever! However, this is a problem for the entire Crypto industry and not just for Ethereum.
Finally, over the past couple of years, a plethora of ICO's have raised up to $20bn in ETH tokens. This helped drive up the price of Ethereum in the past but could pose a problem for the price of ETH going forward. This is because, despite a lot of these tokens being sold off during the Crypto crash in 2018, many are still held by owners of these previous ICO's. If they begin selling their tokens then this will create downward pressure on ETH which isn't a problem for competitors such as Cardano, EOS & Tezos.
To summarise, I believe that Blockchain has the potential to be the fastest growing industry of the next decade. Ethereum's first mover advantage within the use of smart contracts gives it a great chance of being one of the eventual winners in the cryptosphere. This idea is strengthened further when considering the number of projects currently being built on the Ethereum platform, the increasing amount of active addresses and the nearing upgrade to Ethereum 2.0!
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