If you have been undecided about investing in Ethereum, right now might be the best time to buy. But can it make you a millionaire?
Where will Ethereum end up in 2022?
While 2021 was a great year for Ethereum (ETH), 2022 might be even better. With ETH 2.0, the network will transform from a POW protocol to a faster POS protocol, which will give it a leg up over its competition.
Under a PoW protocol, miners use powerful computers to verify transactions. Not only does this process require large amounts of energy, but it is also very slow. Currently, Ethereum is able to process around 14 transactions each second, and Bitcoin can only handle seven transactions each second.
Once ETH moves to the PoS system, it might potentially be able to process around 100,000 transactions each second. This will provide Ethereum with a significant advantage over rival Bitcoin. Also, it might help it keep up with newer cryptos such as Cardano that are using the PoS protocol already.
Also, this upgrade will make it easier for Ethereum’s decentralized apps (dApps) to scale. The ETH blockchain is home to numerous projects ranging from non-fungible token marketplaces to decentralized finance and more, but its slow transaction speeds are holding it back. Once it finishes its upgrade, however, it will be ready to handle more users and expand even faster.
Could Ethereum give you millionaire status?
Ethereum has had an excellent year, but the best might be yet to come. However, it is important to be cautious when trading any cryptocurrency.
Crypto is still a highly risky investment. Although ETH is one of the top players in the crypto world, nobody really knows for sure whether it will succeed or not over the long term. Despite the many advantages it has, Ethereum might struggle if decentralized applications and cryptocurrency do not become widely accepted.
It is also likely that Ethereum will go through more volatility in 2022, especially as it is rolling out its upgrade. If you want to invest, be ready for a rollercoaster ride.
Finally, do not go into this investment thinking you will get rich overnight. The best investments are slow-but-steady performers that have long-term growth. Even if 2022 is a good year for crypto, expect to hold your investment for a few years or even decades to make the most out of your earnings potential.
Ethereum might be a strong crypto, but there aren’t any guarantees it will succeed in the future. However, if you have a higher tolerance for risk and you are willing invest and hold for many years despite near-term volatility, you might make a lot of money.
Author: Scott Dowdy