Ethereum is a cryptocurrency that has gained fame and traction in recent times. It runs as a smart contract over a blockchain, and these contracts are invoked as transactions on the blockchain. These transactions are easy to track and cannot be reversed. This is an era of advanced computing. The smart contract capabilities of Ethereum are being ushered as the future. The innovation makes Ethereum a good candidate for investing. However, is it a good investment only because it innovates? We will try to look for the answers.
The price of an investment instrument typically decides whether it is a good investment option. Ethereum price has been a major factor in driving people towards investing in the same. The returns have been quite impressive since Ethereum was available in the market. 2023 is a year when people want to return to a normal lifestyle after the continuous fear of the pandemic. Many factors ultimately decide whether Ethereum will be a good investment option. However, at least 5 reasons can be identified to make Ethereum a good investment option in 2023.
What are the 5 reasons that make Ethereum a good investment option in 2023?
- Ethereum’s unique capability of running smart contracts has put it in the driver’s seat when considering the world of cryptocurrencies. These contracts are one of a kind because assets like homes, works of art, luxury items, etc., can be owned through Ethereum. Ethereum can also be used for making payments for these. When someone wants to buy such things in a foreign country, foreign bureaucracy can pose problems. With Ethereum, bureaucracy is taken out of the equation, and the person can own these assets in a foreign country without any hassle, almost. This makes Ethereum a good investment in 2023 because of its futuristic abilities that are bound to improve with time.
- For all investment options, we prefer to see the forecasts. The World Economic Forum has undertaken many surveys along with extensive research. They have projected that by 2025-27, most countries will have at least 10% of their GDP transacted and stored over the blockchain. This is a substantial number. Ethereum has provided us with the option of tokenization. In the future, when most countries adopt more cryptocurrencies, tokenization will be a vital part of the backbone. This suggests that Ethereum is built for the future, and the forecasts also conform. It is needless to say that this factor makes Ethereum an excellent investment option for 2023.
- Censorship is a problem that we all face these days over the internet. Most social media applications censor information as it is reserved in their rights to do so. Ethereum is decentralized. It is a boon for everyone who seeks to remain free. Information over Ethereum cannot be censored. All data or information is stored on the Ethereum blockchain. This is an immunity from any agency, government or private. No one can alter or censor any information on the blockchain. People are looking to Ethereum to end censorship over the internet. Once again, this feature makes Ethereum ready for the future. The value of Ethereum is bound to increase as more and more applications or websites continue to get censored. This futuristic feature of Ethereum makes it an excellent buy in 2023.
- In 2017, a situation called the pop of the crypto bubble happened. Many cryptocurrencies were thrown out of the market, and Ethereum also suffered. It lost 84% of its value but did not fade. The innovations in Ethereum ensured its survival. New projects are coming up in electric vehicle charging stations, healthcare records, microgrids, etc. Sustainable energy is one particular field in which Ethereum projects have been pushing hard. The field of renewable energy has been tapped for quite some time. Sustainable energy is the most vital thing that we have to think about. Ethereum’s focus on sustainable energy projects has made it an excellent investment in 2023. After all, it is indeed built for the future.
- Though we have associated Ethereum with cryptocurrencies, which is partially true, it is actually much more than that. There is no emphasis on currency as far as Ethereum is concerned. It is the smart contracts that make Ethereum what it is. Other cryptocurrencies can store value, and a person can use them to pay for assets. Ethereum, on the other hand, can be used for its ability to create contracts. It can tokenize assets. Ethereum can also do the job of a currency as it can be used to pay. Ethereum is also not capped for the maximum number in circulation, so there is no maximum limit on how many Ethereum can exist.
These factors make Ethereum a good investment for the future, starting in 2023. Talks of Ethereum 2.0 are on the horizon. It is expected to make the already excellent Ethereum even better.