Cryptocurrency investments have received a lot of attention recently, thanks in part to the massive gains made by some, like as Ethereum (CRYPTO: ETH).
What exactly is Ethereum? It is a blockchain technology platform that enables software developers and programmers to create applications that can be traded using the Ether token. NFTs, or non-fungible tokens, and decentralized finance applications are among the items traded with Ether. Ethereum does have a market valuation of over $516 billion, ranking it the second cryptocurrency after Bitcoin.
Ethereum is unquestionably one of the popular alternatives in the relatively new world of cryptocurrencies.
A recent Bankrate survey found that 49 percent of Millennials, 37 percent of Gen Xers, and 22 percent of Baby Boomers were comfortable investing in bitcoin. Indeed, an increasing number of people are considering incorporating crypto assets into their retirement accounts. Should you include Ethereum in your financial plan, and may it help you retire early?
Ethereum has been on a rocket ship since its inception in 2015. When it first appeared in August 2015, one Ether token was worth $2.77 — and then sank to $0.75 the next day. Today, one Ether token is worth more over $4,600.
So, if you had invested $100 in Ethereum in August of 2015 at $0.75 a token, you would have received approximately 134 tokens. Those 134 tokens are now worth almost $600,000, since each is presently trading at a price of approximately $4,660 as of midday on Nov. 30. If you had invested in it when it was worth roughly $1 per token, you would almost certainly be on your way to retiring early. But there’s no need in beating yourself up because you missed the boat, as most people did.
Also, keep in mind that Bitcoin was over $8,000 per token at the start of 2020, and it is now around $60,000 less than two years later.
The question today is whether you should invest in Ethereum, and if so, how much.
You don’t need to spend much because one token is now selling at roughly $4,660. You may invest in Ethereum for any amount you choose via exchanges or digital wallets, investing in a proportion of an ether currency.
Investing in this relatively new asset class, however, is risky. While Ethereum is the second-largest cryptocurrency and has a first-mover advantage, numerous new rivals will strive to cut into its market share by developing quicker and more efficient systems. It should be emphasized, however, that Ethereum is currently building Ethereum 2.0, which is supposed to make it more secure, scalable, and sustainable.
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