Ethereum: how it works and medium and long-term forecasts.
Understanding Ethereum
Ethereum is permanently one of the top digital currencies and collects a lot of interest not only from expert traders but also from those who want to invest small savings. Ethereum is one of the most popular and is capable of moving important monetary flows globally.
LAST UPDATE 14 February 2022
Preface
We can define ETH as the historical rival of Bitcoin considering that it is the second most widespread and capitalized even if, for the moment, it is still far from dethroning BTC.
This crypto was conceived and developed in 2014 by the programmer Vitalik Buterin and today has over 340 billion dollars of capitalization.
In this post we will analyze the functioning of Ethereum and the possible movements in the value of the currency in the short, medium and long term, in particular the forecasts of the leading experts for 2022.
Will ETH’s value rise in the coming months and years? Can it be considered a good investment?
Let’s start by taking a look at what has happened in the last 2 years: from December 2019 to today, the value of Ethereum has increased by over 4000% with a variation from 180 to 2,800 USD.
On May 11, 2021, ETH reached USD 4,384 (Binance chart) with over 500 billion dollars of capitalization (that is, more than giants such as GM, McDonald’s and Coca-Cola). We therefore have a new “All time High” at $ 4880.85 reached on November 9th.
ETH at this moment is in an unclear situation that leaves, in the short term, two scenarios: a bearish one that sees the price reach $ 1,800 and a bullish one that, instead, expects the price to return close to $ 5,000.
How Ethereum smart contracts work.
At the level of cryptocurrencies, the functioning of Ethereum does not differ much from that of Bitcoin. In fact, both use a blockchain, but unlike Bitcoin, Ethereum allows a much higher number of transactions per second and, above all, in addition to being a payment system, it allows the use of “smart-contracts”, which are currently buying very large popularity thanks to DeFi (Decentralized Finance).
In order to be placed on the network, Ethereum’s smart contracts “pay” for a use of computational power through the currency Ether, which therefore acts both as a crypto currency and as a “fuel” or “gas”.
Contrary to what happens for other cryptocurrencies, Ethereum is not only a network for the exchange of monetary value but also a network within which real contracts run that can be used in a rigorous and secure manner in order to execute a large number. of operations, such as: government of electoral systems, registration of domain names, agreements on financial markets, crowdfunding platforms, protection of intellectual property and much more.
A smart contract does not need intermediaries and, as it is neither verbal nor written in any of the languages we speak, it avoids the problem of interpretation.
Smart contracts are computer code, which means that the terms of the contract are pure decisions and commands within the code that constitutes them.
On the other hand, a smart contract can be created and named by natural and / or legal persons. But also from machines or other programs that work autonomously.
A smart contract is valid without depending on the authorities. This is due to its nature: it is a code visible to all, which cannot be changed as it is present on the blockchain technology. This gives it a decentralized, immutable and transparent character.
Buying and selling Ethereum
Buying and selling Ethereum is very simple and immediate thanks to Exchange platforms, such as Binance, Coinbase and others. They also directly provide the digital wallet service, known by all as eWallet.
Ethereum Price Forecast 2022
The forecasts of leading industry experts are quite uncertain at the moment and range from a low price of $ 2,400 to a high of $ 15,000. Personally I believe that Ethereum will show steady growth and no disruptive downturns over the next few months. This is also thanks to upcoming releases and technical changes that will take place on the protocol.
Trading Beasts (https://tradingbeasts.com) predicts a trend reversal that will come around March 2022 with a steady growth of ETH, whose maximum price of $ 5,300 will be reached in December 2022.
Wallet Investor (https://walletinvestor.com/) is instead more optimistic and expects an average value of $ 6,000 until July to reach almost $ 8,000 by the end of the year.
What does the future hold?
The price of ETH could record an all-time high over the next five years. According to Simon Dedic, co-founder of the company Blockfyre (https://blockfyre.com/) and Moonrock Capital (https://www.moonrockcapital.io/), the price of Ethereum could go as high as $ 9,000 in 2025.
Where to buy and trade Ethereum
Nexo
Buy ETH and trade on Nexo.io
Binance
Buy ETH and trade on Binance
Coinbase
Read our guide (soon)
Buy ETH and trade on Coinbase
BlockFi
Read our guide (soon)
Buy ETH and trade on BlockFi
Where to earn ETH for free
Freebitco
earn easily BTC on Freebitco (then you can swap in ETH)
Cointiply
earn easily COINS on Cointiply
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