Ethereum 2.0: The Blockchain Upgrade That Will Change The Crypto Game
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So, what is Ethereum? Created in 2013 by Vitalik Buterin, Ethereum is a decentralized blockchain represented by its native “token” Ether or ETH: a scarce digital money that you can use on the internet, similar to Bitcoin. Think of it this way: ETH is the digital currency that powers Ethereum. You can use it to buy, sell, or sometimes use it for payment for products and services.
It’s become the second most notorious name in the crypto game, and for good reason: the Ethereum blockchain network is slated to get its biggest update yet. This will be one of the most exciting shake-ups in the crypto space to date!
How the Ethereum 2.0 Upgrade Will Change The Blockchain
Let’s talk about why the upgrade to the Ethereum blockchain is so crucial for the longevity and success of this crypto in the long term. Before getting into the nitty-gritty, just think of it as the same Ethereum that enthusiasts have come to know and love, but just more scalable, more secure, and most importantly, better for the environment.
Ethereum’s vision for this upgrade is to bring the crypto into the mainstream to “serve all of humanity” with these key points about it’s future:
- More Scalable: Ethereum will ultimately need to support thousands of transactions per second, to make applications faster and cheaper to use.
- More Secure: The blockchain’s protocol needs to become more secure against all forms of cyber attacks.
- More Sustainable: Ethereum’s technology today consumes too much energy and computing power. The upgrade will ensure that Ethereum is more eco-friendly and all around more environmentally sustainable.
So, the Ethereum 2.0 upgrade aims to address all of the current challenges posed by the Ethereum network. The implementation of these crucial upgrades will both improve the longevity of the crypto as well as sustainability of the blockchain.
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The Crypto Bear Market
At least for now, the days of the “crypto bull market” are over. Instead, the “crypto bear market” is a buzzword we’ve all been hearing about these days. Simply, the value of the crypto market is down significantly in the last month; collectively, a TRILLION dollars has been shed from their value. This has undoubtedly affected the price of Ethereum to date. As of June 2022, the cost of one ETH hovers around $1,000-1,100, according to CoinMarketCap.This represents nearly a 75% decrease from just several months ago when ETH’s value hovered around $4,000 per token. And with a looming recession will come a “crypto winter.” It’s expected the value of the crypto market will plunge even lower come winter 2022/2023.
Some of you might be thinking: is this a negative sign? Should I pull out of my crypto investments or dismiss any idea of getting started with investing? My take: This is the moment to get in on stable cryptos, such as Ethereum, to take advantage of the all-time low price point.
Ethereum has widely used applications for financial transitions and the development of apps. As society leans more towards the adoption of digital currencies on a global and universal scale, expect the value of ETH to surge.
How to Buy and Sell Cryptocurrencies
If you want to start investing in crypto too, some of the most common ways to purchase are through a cryptocurrency exchange like Coinbase or Gemini or on an online trading platform like Robinhood. Check out the table below to learn more about each platform:
| Platform | Founded | Best Reasons To Sign Up |
|---|---|---|
| Coinbase | 2012 | One of the largest cryptocurrency exchanges in the world. You'll get access to a wide variety of both common and uncommon cryptocurrencies. |
| Gemini | 2014 | The world's first licensed Ether (Ethereum) exchange. Start investing with as little as $5 and earn interest on certain cryptos. |
| Robinhood | 2015 | Commission-free trades on all cryptocurrencies, like Bitcoin and Ethereum, as well as stocks and ETFs. You can buy, sell, and hold cryptos and traditional investments all in one platform. |
The Bottom Line
From my point of view, investing in Ethereum now could mean a serious return on your initial investment in about 5-10 years. Take your shot if you have the means to get in within the next 6 months for the strongest potential to get the most tokens for the least amount of money a.k.a. “buying the dip.”
With that being said, please remember that crypto is still an emerging frontier. While there’s potential for a very high reward, there’s also a high risk involved. It’s important to focus your finances on paying down high-interest debt, saving, and investing before investing in crypto. It’s advisable not to invest more than 5% of your assets in crypto, to play it safe.
Read More: How Cryptocurrencies Have Helped These Millennials Become Financially Independent
