Are you a crypto enthusiast? Do you wish to make Ethereum investment? You will find many reasons for or against it. However, one of its unique negatives is that it gets huge attention. Ownership distribution is one of Ethereum’s downsides. But for people who are looking for Bitcoin alternatives, conventional stocks, or commodities the best thing is that they will find various Ethereum trading options. Here is a summary of the strengths, weaknesses, and risks of Ethereum investment.
Strengths of Ethereum
Worldwide Cryptocurrency Transactions
- Ethereum lets worldwide transactions without any requirement for any intermediary.
- It means that it offers an efficient and low-budget method of sending money throughout the world.
- It can perform fast, safe, and secured worldwide transactions.
- These people are able to conduct all their businesses and transfer money to anyone anywhere at only a fraction of charges deducted by the banks.
- One must follow the price changes of this crypto to stay well aware of the present things.
- Thus they can avoid investing at a much higher price only to witness a drop in value soon after.
- It is also working to build a worldwide and decentralized financial infrastructure handling every type of cryptocurrency exchange.
It Comes with Huge Support
- It is vital to note that currently, some renowned names such as Microsoft have started to support this digital asset with their products.
- It means that Microsoft will be using the blockchain of Ethereum or developing blockchain depending on it.
- It will work best for keeping Ethereum’s demand high and will also be keeping its price high and thus increase the value.
- Also, such companies will be using its network for building their services or products.
- It will be a great benefit for this crypto as it will be becoming accessible and thus usable by people and more will be investing in it.
- The confidence of consumers will be increased. They will understand that Ethereum includes a powerful backing that makes it much more convenient for investors to add support to its value. Click here to know more.
It is Quick
- This cryptocurrency includes a blockchain that can process all transactions within a few seconds whereas previously it took days to process transactions.
- Lately, the mainstream media started to focus on ICOs. But there are many practical applications for such technology like money transfer via some smart contract.
It is pretty important for users to understand the pros and cons if they want to invest in Bitcoin in the future.
Weakness and Risks of Ethereum
Volatility in Price
- People wonder why Ethereum is so costly now when it is only used for crypto transactions.
- It is because people use it in the form of an investment and not a currency even after there are some decentralized currencies such as Bitcoin that work in this way.
- Its price is not stable. It may also be valued more or less a few hours afterward from now.
Centralization of Hub
- Many miners are there in Ethereum. However, you will find some hubs that come with high computational powers compared to others.
- It means that such people control all regarding the network.
- They may not be using the power for transaction tampering or rerouting funds, no one will be sure of their intentions.
- Moreover, there is a huge chance of these hubs shutting down making the entire system suffer.
Ethereum Transactions Fetch Money
- When many people are transactions simultaneously, then you may need to wait for some time, hours, or days before processing the transaction.
- If the blockchain network is faster, it will be better for not only individual but also business transactions.
- Also, people need to pay the miners to mine the transaction.
- So you must ensure that Ethereum is priced more than the money you will spend to mine it.
- Some individuals only wish to make Ethereum investment and not use it for any transaction. So the cost would not apply. But many believe that if they cannot use something in everyday life, then it is no point to have it.
Many investors assume that the positive sides of Ethereum outweigh its negative side. Thus these days many are thinking of investing few amounts in Ethereum whereas some prefer investing elsewhere. As an investor you must understand that positive and negatives are part of everything, so you must invest in Ethereum with proper and thorough knowledge and research.