Should You Buy Ethereum? 7 Pros & Cons of Ethereum Investment [2021]

Written by

R.R.H.

Professional Reviewer

I’ve been where you are. 

Back in time, I heard of Ethereum almost as much as I heard of Bitcoin. And I wondered: should I buy Ethereum? Is Ethereum a good investment or is it too late?

I heard from many reputable sources that lots of innovations and cryptocurrencies were built on Ethereum. But I was still wondering whether or not I should invest in Ethereum. 

Your all-in guide to help you make the best decision.

Let’s dive in!

What is Ethereum? A Brief Overview

Simply put, Ethereum is a smart computer.

Ethereum allows computer programs to run “smart contracts.”

With a smart contract, you don’t need a third party to perform credible transactions. And because these smart contracts live on blockchain technology, they are trackable and irreversible.

A new era of computer programming, digital ownership, and other innovations are being introduced thanks to the smart contract capabilities of Ethereum.

That's why Ethereum is the future. But is Ethereum a good investment only because it innovates? Not necessarily. 

So here they are, the reasons why Ethereum may be worth buying in 2021.

Is Ethereum a Good Investment in 2021?

5 Reasons Why Ethereum Is a Good Investment

Ethereum is new. It came out in 2016. It still has bugs here and there, but for people who are willing to be involved and try this new technology --- it can prove quite profitable. 

why is ethereum a good investment

So, should you buy Ethereum? Here are 5 reasons to take action and become an early adopter and investor.
 

#1 Ethereum could be a world computer

The reason Ethereum gained such massive popularity and almost flipped places with Bitcoin in June 2017 is due to its ability to run smart contracts

Take, as an example, assets: homes, artwork, luxury cars, etc. Ethereum’s smart contracts can secure ownership of these items. Foreign investors and people around the world won’t need to run through the bureaucracy of foreign nations system in order to own a home or artwork in another country. They can use a smart contract built on Ethereum. And they can pay with Ethereum too.

The world may be interconnected thanks to the internet, but Ethereum is showing new and improved levels of interconnection for businesses and private individuals around the world

With this in mind, the answer to the question ‘is Ethereum a good investment’ starts to look like a no-brainer.

While we're here, I've compiled my favorite platforms to buy ETH, and I recommend you use one of them:

 *eToro Disclaimer: Your capital is at risk​
 

#2 Ethereum will give us Tokenization

The World Economic Forum (WEF), in their surveys and research, projected that “up to 10% of the global Gross Domestic Product (GDP) will be stored and transacted with the help of blockchain technology by 2025–27.

ethereum tokenization

Keep in mind what they are saying: each country worldwide will use blockchain technology up to 10% of its GDP.

A few years ago, as I was wondering whether or not I should invest in Ethereum, the concept of tokenization and all its use cases for Ethereum made my mind clear like water: Ethereum is the future, and there are myriad reasons why Ethereum is valuable. 
 

#3 Ethereum can run uncensorable apps

Censorship is a real issue in the modern world. 

Facebook, Twitter, Youtube, Instagram, all of these companies reserve the right to delete, modify, or hide content. They often do. 

 

Source: GOOD Magazine YouTube Channel
 

Ethereum can help keep the free world remain informed because it is decentralized

The information stored on the Ethereum blockchain (data, smart contracts, dApps) can’t be shut down by a government or agency and will remain alive and uncensorable for as long as Ethereum is alive -- which could be for a long, long time. 

Keeping the people capable of making educated decisions is one of the many reasons why Ethereum is valuable. And now is the best time to buy Ethereum and prepare for the end of censorship.

This is one more reason why 2021. might be a good time to buy Ethereum and participate in the termination of censorship.

#4 Ethereum is a host for innovation.

Ethereum lost 84% of its price value after the so-called 2017 ‘crypto bubble popped’ -- but Ethereum did not die. Just like the internet -- which didn’t die after the 90’s ‘internet bubble’ -- Ethereum has gained strength and momentum.

Fascinating new projects are being built on Ethereum: microgrids, charging stations for electric vehicles, crypto collectibles, home mortgages, health care records, and many more.

why ethereum is worth buying

Source: brooklyn.energy
 

So, what are some more reasons to invest in Ethereum? Well, if:

  • You believe we need sustainable energy production and management
  • You want to be ahead of the curve

Then buying Ethereum in 2021 might be a worthy investment for you.

#5 Diversification - Ethereum, Bitcoin & more

Ethereum’s technology and purpose are different than Bitcoin. 

We know why Bitcoin is a good investment -- but is Ethereum an even better buy?

Bitcoin was initially meant to be a cryptocurrency -- emphasis on ‘currency.’ Ethereum is different and is intended to be a platform for smart contracts

With Bitcoin, you can store value and pay for things, while with Ethereum, you can program smart contracts, tokenize assets, and more. 

Ethereum is also okay at being a payment system too, but it does not have the brand awareness and immutability of Bitcoin -- plus Bitcoin is truly scarce since it’s capped at 21 million coins -- while Ethereum is uncapped.

Cryptocurrency diversification

Buying both Ethereum and Bitcoin is a solid diversification. This is why Ethereum is a good investment if you’re interested in investing in cryptocurrencies beyond Bitcoin.

*eToro Disclaimer: Your capital is at risk​
 

2 Reasons Why Ethereum is NOT a Good Investment

There are two sides to every coin. It is unfair to only look at one side. 

So let’s peak at a few reasons you should consider not to buy Ethereum. This will give you a more balanced perspective. 
 

#1 Ethereum Killers, a real threat?

Ethereum may have been the first blockchain to run smart contracts -- but now it is not the only one.

If EOS and other so-called “Ethereum killers” can become faster, better, and stronger than Ethereum -- ETH could be in trouble.
 

#2 Ethereum security threats

The biggest security threat to Ethereum happened back in May 2016. At the time, an Ethereum smart contract existed... It was called the DAO: Decentralized Autonomous Organization.

So what happened was that the DAO raised $150M in ETH by spring 2016. But the code wasn’t secure. One day, someone wrote code that affected the DAO smart contract, and the DAO lost $70 million in ETH to this “hack.”

To repair the hack and refund people their stolen money, a hard fork took place. Not everyone agreed with the proposed changes, so the Ethereum blockchain split into Ethereum and Ethereum Classic. Ethereum Classic kept the old blockchain -- along with the hacked funds. The new Ethereum blockchain reversed the hack and refunded everyone their money.

Since then, Ethereum has improved its smart contract code and worked on security - and this is why no security issue happened ever since. But cryptocurrency hackers are still a threat. Keeping your Ethers secure -- and keeping any cryptocurrency secure -- still requires work. 

Thus, in 2021. the safety of buying, selling, and storing Ethereum falls on the user. It can be a tough burden -- but certainly manageable.
 

how to keep your ethereum secure after you buy it

Remember: You should buy Ethereum now only if you’re prepared to keep your ETH safe!

Is Now the Good Time to Buy Ethereum?

It could very well be. 

The so-called 2017 ‘bubble’ has popped. Now the price is better reflecting the value and use of Ethereum. Plus with Ethereum 2.0 on the way -- right now the price could be a bargain.

eToro Disclaimer: Your capital is at risk​

So, here are the 2 reasons why now might be a good time to buy Ethereum:

#1 Ethereum 2.0 is on the horizon.

Ethereum has faced many criticisms: slow network, power hungry mining, scalability. All these negatives are true. But Ethereum 2.0 is in the works.

Vitalik Buterin, the founder and CEO of Ethereum, announced they will release Ethereum 2.0 -- saying the future launch of Ethereum 2.0 will be “1,000x more scalable” and “cut energy costs by 99%”.

is now the good time to buy ethereum

It’s set to be released in phases, starting from December 2019. Of course, if Vitalik manages to release these updates on time, the value and price of Ethereum will increase significantly.

The promise of a 99% reduction in electricity, faster transactions, and vastly increased scalability is an ambitious goal

But is it achievable? 
 

#2 Ethereum has more developers than any other “Ethereum Killer”

Ethereum’s competitors, like EOS, claim their blockchain can perform leagues better than Ethereum. 

But proving it is another thing. So far, none of the so-called “Ethereum killers” have been capable of demonstrating their prowess.

Blockchain development is a skill in demand. It has grown 6000% in 2018 and is the fastest growing skill on freelancing websites.

The growth of the Ethereum development community is impressive. It makes sense that, according to cryptocurrency researcher Kevin Rooke, “94 out of the top 100 blockchain projects were launched on the Ethereum network.

History shows that those with the most and best developers win. As a result, we can assume that Ethereum will compete with EOS and other competitors without much trouble.

What to Know Before Investing in Ethereum?

We at Cryptomaniaks have had our fair share of challenges and mistakes.

For now, here’s a list of the essentials you need to know before investing in Ethereum:

  1. Buy Ether only from reputable exchanges (check our list here).
  2. Use 2 Factor Security and use strong passwords.
  3. Don’t leave your crypto assets on exchange platforms.
  4. Buy and use one of the best hardware wallets available.
  5. Invest only the amount you are comfortable losing.
  6. Be able to make the right decisions and cash out when it’s the right time.
  7. Timing - don’t buy at an all-time high, don’t sell at an all-time low. You should consider buying more when the market is still recovering from its low spot.
  8. Diversification is necessary for any investor to reduce risk -- invest in more than one cryptocurrency.

how much ethereum should you buy
Transacting with Ethereum is very similar to Bitcoin -- but there are still a few differences. So dip your toes in the water little by little. Then, when you’re ready, go swimming!

Where Can I Buy Ethereum?

Here at CryptoManiaks, we are staffed with people who have all worked, studied, and generally kept up to date on cryptocurrencies.

Over the years, we’ve experienced countless issues. One of them is the trouble of buying Ethereum.

But as we’ve made mistakes buying and selling Ethereum, we’ve also learned. Since this info will benefit everyone who reads our articles, we went ahead and made a list of the best platforms to buy Ethereum. 

Ethereum or Bitcoin - Which Should You Buy?

Both Ethereum and Bitcoin are fascinating -- in their own ways. I would simply say -- diversify: Buy both. 

But if you’re keen on sticking to one or the other then let’s examine which one is better for you.
 

Are you looking to buy and hold?

If you’re in the game to try and make some money, then you’re looking for the one that will make you money.

Bitcoin has been around for twice as long as Ethereum. It has more media coverage and is the most established crypto asset. Therefore, Bitcoin should be a less risky investment. 

Bitcoin has the potential to be used as a way to transfer and store value. Bitcoin’s supply will be limited to 21 million Bitcoin; it’s scarce -- much like gold. The last Bitcoin will be mined in the year 2140. After that -- no more!

If you don’t mind me getting a little technical -- Bitcoin has a deflationary model. This means the supply is capped and the value will not be ‘diluted’ or ‘inflated’ by adding more Bitcoins.

should you buy ethereum or bitcoin

Source: coinjournal.net
 

Also, every four years, Bitcoin experiences a halving. Simply put: every four years, Bitcoin miners get half as much Bitcoin as they did before. This limits the supply of Bitcoin and increasing its value.

Ethereum can also be used to transfer value. But it may not be the best store of value, because Ethereum does not have a maximum supply. 

Currently, there are more than 100 million Ether in circulation -- with more being created each day. This is because “Ethereum has opted not to set an upper limit on its total coin supply.

So should you buy Ethereum or Bitcoin? Well, if you’re simply looking to invest in cryptocurrency and you can only pick one, perhaps Bitcoin would hold up better. It is the king of crypto, the first crypto that ever existed, and the one that best represents the fundamental beliefs that led to their creation.

You should buy Ethereum if you’re more interested in innovation and use cases rather than in scarcity and the economic model of Bitcoin. 

I still believe Ethereum is the future.

 

eToro Disclaimer: Your capital is at risk​

Verdict - Should You Buy Ethereum?

My answer is ‘YES.’ 

Vitalik Buterin, Ethereum CEO, is a leader unlike any other. Instead of being focused on the price, he is focused on making Ethereum the best smart contract platform. His passion and genius are committed to improving Ethereum no matter what.

This means that Ethereum is in good hands. If the price goes down -- the CEO won’t quit or lay off a bunch of people to please the stockholders. Instead, he will work on fixing the flaws and improving Ethereum -- which often leads not only to increased price, but also to a sustained higher price.

Plus, Ethereum 2.0 will be leaps forward for blockchain technology and smart contract use cases.

*eToro Disclaimer: Your capital is at risk​

The Ethereum foundation is pumping $30 million into developing their platform -- which will bring fresh, innovative new dApps for us to use. 

As the years progress, Ethereum’s technology will grow.

And technologies led by intelligent, focused people are often a good bet. 

So get on Coinbase or another site recommended in this article and buy yourself 1 Eth today -- and welcome to the wide world of blockchain.

 

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