FOREX INVESTORS BUZZ Hold Ethereum 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?
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.
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.)
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 $500.00 million worth of Bitcoin. It’s all reflected in the Bitcoin price chart history.
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.
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.Click here for reuse options!