Hold on to Ethereum for the Long Term

Ethereum cryptocurrencyEthereum Price Prediction 

With the cryptocurrency wars currently underway, two massive networks of peer-to-peer currencies are vying for supremacy: Bitcoin (BTC) and Ethereum (ETH). Seen as the newer upstart, Ethereum is perhaps more exciting for investors who are looking to get in during the early goings-on.

The Ethereum price prediction is one of the most talked-about aspects of the cryptocurrency, as investors wonder just how high (or low) it can go. One thing is certain: no matter what side you fall on, there’s money to be made in ETH. The question is, do you sell fast or hold long?

Also ReadUnstoppable Bitcoin Headed to $10,000?

That is not easy to answer, and Ethereum carries risk any way you slice it. Nevertheless, I would say that holding on to Ethereum long-term is your best bet. While you don’t want to be putting your entire life savings into ETH, there is money to be made by savvy investors. Looking at the long-term projections of Ethereum is the best way to earn those returns.

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Ethereum Price Chart 

Anyone who is looking to invest in cryptocurrencies must know that there is a lot of volatility, and ETH is no exception. The online currency lost about half of its value in the last month, peaking at about $400.00 per unit before falling to about $190.00. These types of swings are par for the course when it comes to this sector.

With the price as low as it is right now, this could be an excellent time to buy if you’re willing to hold long enough to experience the uptick.

Ethereum Price Chart

(Data source: “Ether Historical Prices (USD),” Etherscan, last accessed July 11, 2017.)

Consider the massive panic attacks that swept across the ETH world when its whiz-kid creator, 23-year-old Vitalik Buterin, was rumored to have died in a car crash. The panic led to an approximate $4.0-billion loss in value of the cryptocurrency—all because one person was thought to have died. (Source: “Fake news of a fatal car crash wiped out $4 billion in ethereum’s market value yesterday,” Quartz, June 26, 2017.)

It’s exactly these kinds of shenanigans that scares a good number of people away from online currencies like ETH. But once you’re in the market, you have to be willing to weather storms like these if you want to make the most out of the investments.

Also Read:

Bitcoin Price Prediction for 2017

Bitcoin vs Ethereum: The Best Digital Currencies for 2017

Just take a look at Ethereum’s closest rival and best analogue, Bitcoin. In 2013, the value of a BTC unit shot up from below $100.00 to over $1,100, only to decline to $700.00 nearly as quickly. After that it continued to fall for the next two years. One of the big reasons for the massive drop-off was the infamous Mt. Gox attack that saw the world’s largest Bitcoin trading exchange, Mt. Gox, lose almost $500.0 million worth of Bitcoin. It’s all reflected in the Bitcoin price chart history.

Bitcoin price chart

(Data source: “Bitcoin,” CoinDesk, last accessed July 11, 2017)

The moral of the story, though, is that, while the hack derailed the cryptocurrency for a good while, BTC did eventually recover (at one point peaking above $3,000), and now it sits above $2,300. ETH can be an equally successful investment; it just requires patience, steadfastness, and nerves.

It’s not for the faint of heart, but if you’re in, stay for the long haul and you can make a lot of money.

When Will Ethereum Switch to PoS? 

Which brings us to another interesting development in the Ethereum price prediction: the switch from proof-of-work (PoW) to proof-of-stake (PoS).

The Ethereum switch to PoS will be one of the biggest events that the cryptocurrency world has experienced so far, with wide-reaching implications for ETH, BTC, and the whole idea of cryptocurrencies in general.

For a quick refresher, the change to PoS centers on Ethereum users looking to do away with the mining model that BTC employs, which is PoW.

The problem with PoW is that it’s time-intensive, hugely inefficient, and very taxing on energy. One projection shows that Bitcoin transactions may cost as much energy in 2020 as the entire nation of Denmark consumes. (Source: “Proof of Work vs Proof of Stake: Basic Mining Guide,” BlockGeeks, last accessed July 11, 2017.)

PoS, on the other hand, hopes to do away with PoW by altering the process, doing away with random miners and instead using “forgers” to help with transactions.

PoS has the ability to radically shift the balance of power from BTC to ETH, which would mean a huge price surge. So getting in before the PoS change, which has yet to have a solid date, could be a very wise investment.

Is Ethereum PoS a Threat to Ethereum Prices? 

So is PoS a good or bad thing? That all depends on who you ask, but—more importantly—it’s a pivotal moment in ETH.

If the new PoS system ends up being better than the previous PoW workaround, the value of ETH will skyrocket. The Ethereum price prediction at that point would have to dramatically change to accommodate the new innovation.

On the other hand, if it fails, ETH will feel the pain.

But for those who get in before PoS, and who are there to reap the benefits if it is successful, this could be turn out to be one of the best investments they make all year.