We will discuss the Ethereum forecast update and why we think Ethereum is important to our financial future. In addition, we will explain what Ethereum is, what it does and why many investors are bullish in the long term on it as an investment.
What is Ethereum and Ether?
Ethereum is a Block Chain Project That Uses Smart Contracts to Power Other Projects
The Ethereum project is an open-source, decentralized block chain project. Ethereum is the creator of smart contracts. It provides open access to money, via the Ether cryptocurrency coin (ETH), and technology, exemplified by the thousands of applications that are operating on the Ethereum network. The ETH coin of Ethereum is second only to bitcoin in market capitalization.
Like Bitcoin, Ethereum is a Proof of Work consensus system. This means that powerful computers all over the world are continuously solving complexed equations in order to build blocks on the Ethereum block chain. Whichever machine or miner solves the problem quickest, completes the block and receives a reward as payment: ETH coin.
Ethereum Smart Contracts
Although Ethereum shares some features with Bitcoin, such as being able to make peer-to-peer transactions, they serve different purposes and audiences. Bitcoin was the original decentralized payment system that didn’t require a bank to conduct payments. Although Ethereum is used for payment, its primary purpose is to serve as the core block chain for new projects.
Ethereum is a payment system that integrates ETH. However, it goes one step further by implementing smart contracts. It allows new projects to run on top of the Ethereum block chain. For example, in November 2017, “CryptoKitties” was launched on Ethereum. CryptoKitties was a digital trading app of virtual felines. Ethereum has always been a top 10 cryptocurrency.
You can learn more about Ethereum in our article entitled, “The Fastest Growing Cryptocurrency.”
Using block chain technology, the Ethereum Network of nodes is a true peer-to-peer world-wide network. Smart contracts are implemented using the Ethereum Virtual Machine (EVM), a specialized computer code that executes instructions in a decentralized, secure manner. While running contracts, Ethereum uses its own internal pricing fee, which is paid in Gas (GAS).
How Ethereum is Different from Bitcoin
When Bitcoin was introduced to the world in 2009, it was created to be a decentralized, peer-to-peer payment system. Bitcoin was essentially digital internet cash. Both Ethereum and Bitcoin use block chain technology and a proof of work system. However, Ethereum is used not only as a payment system using Ether (ETH), but it goes one step further by implementing smart contracts. In addition, it allows new projects to run on top of the Ethereum block chain. For example, in November 2017, the decentralized application (DApps) “CryptoKitties”, a digital collecting and trading app of virtual felines, was launched using Ethereum. Overall, CryptoKitties was a success, but also showed that Ethereum had more growing to do. In addition, these early DApps demonstrated real use cases for Ethereum, which changed the future of Ethereum in a big way.
Ethereum 2021 and Beyond
Fast forward to the cryptocurrency scene of today. Despite a market collapse store of 2018-2019, Ethereum has continued to grow rapidly. There are several hundred thousand developers actively working on the Ethereum block chain and related projects in different capacities. Currently there are over 600 DApps successfully operating on the Ethereum block chain network. And with so many big players involved and future growth assured, Ethereum promises to be exciting to watch in the future. Clearly, each new DApp increases the Ethereum forecast expected from investors and crypto experts.
Ethereum Doesn’t Compete with Bitcoin
Although Ethereum shares some features with Bitcoin, such as being able to make peer-to-peer transactions, they serve different purposes and audiences. Bitcoin was the original decentralized payment system that didn’t require a middleman bank to conduct payments. But, although Ethereum is used for payment sometimes, its primary purpose is to serve as the core block chain on which newer projects operate.
Ethereum Adoption is Growing Rapidly
There are a couple of things to understand about the Ethereum forecast and its growth. First, Ethereum is growing in popularity and use worldwide. It is being rapidly adopted by smart contract users who require it for blockchain projects. Second, Ethereum is growing in price. There are many other known examples of institutional investors who have begun investing in Ethereum. With traditional banking and financial systems beginning to crumble, smart investors are beginning to look for a new, safer place to secure their investment.
Pros of Owning Cryptocurrency
Owning Cryptocurrencies May Save A Failing System
Owning cryptocurrencies requires that you have a future vision that is radically different than our current banking system. In addition, cryptocurrency and the Ethereum forecast are inherently risky and volatile for investors. However, many believe that cryptocurrency investment is a vote for monetary freedom and independence from governments.
Currently, many countries throughout the world are struggling with debt. As sovereign debt climbs higher in the United States, there doesn’t appear to be an effort to keep the financial system from boiling over. In addition, inflation for many people has become a problem and prices are going higher. Many investors are looking for an alternative investment from an overpriced stock market and real estate market. Cryptocurrency may be a safer place to invest and the Ethereum forecast is positive at this time.
Ethereum Forecast: Potential Investments for 2021
In early 2021, Bitcoin traded at approximately $60,000 per coin. There are many analysts who are estimating an even higher Ethereum forecast for BTC, even as high as 6-figures in late 2021. But even more importantly, Bitcoin and other cryptocurrency may break the banking chains that imprison us today. And it’s no longer a conspiracy theory to discuss cryptocurrency. Respected investors are taking it seriously like never before and the Ethereum forecast is looking bright.
Future Ethereum Forecast
Reputable Investors Foresee Exponential Growth in Bitcoin and Ethereum Markets
It seems clear that in 2021, Bitcoin and Ethereum have begun the next phase of expansion and adoption. As a result, the price of both cryptocurrencies will likely go much, much higher. In addition, these may be the best cryptocurrency to buy in 2021. However, there are other good choices as well.
Ethereum Forecast: $35,000?
As for Ethereum, investors are optimistic about the Ethereum forecast as well. Because Ethereum’s market capitalization is only $300 Billion, there is a lot of room for growth. Continual adoption of Ethereum by institutional investors could easily lead to a $600-900 Billion market capitalization, equating to a $5,000-7,500 ETH price. Investors such as Nigel Green and Blockfyre co-founder Simon Dedic predicted much higher prices ($2,500 – $9,000) for Ethereum in the future.
Several of the investors mentioned are worth Billions cumulatively and have a clear track record of investing in markets. They have been advising investors of which is the best cryptocurrency to buy for years. As a result, their predictions are very serious.
In January 2018, Ethereum rose above $1,200, which was the all-time high for the token. As of the writing of this article, Ethereum has reached $4,000. With Bitcoin nearing its all-time high of around $60,000, there’s no reason to think that Ethereum can’t do the same in the near future. As a result, the next target for Ethereum is probably $5,000 and it will likely happen later this year.
Prime XBT: $35,000
In an article written in November 2020 by Prime XBT, Ether price is predicted to exceed $750 by the end of 2020, which so far is correct. They go on to predict that Ethereum will likely approach $1,400 in 2021-2022. They subsequently predict a price of $35,000 Ethereum by 2025!
Simon Dedic: $9,000
Another cryptocurrency expert who has been in the space since the early days is Simon Dedic. Simon presented at the first Bitcoin conference and has been a Bitcoin hodler for a very long time. He also wrote the first book related to Bitcoin. Many people have made their Ethereum forecast, but when Simon speaks, smart people listen. He’s on record saying that Ethereum will reach approximately $9,000 someday.
Other Notable Ethereum forecasts
James Todaro believe that Ethereum will have a $1 Trillion market cap (this equates to $8,900 Ethereum)
Crypto Research Report predicts that Ethereum will reach almost $3,500 by end of 2025 (Achieved in 2021)
CoinSwitch predicts that Ethereum will rise to $3,800 by 2025 (Achieved in 2021)
Crypto Rating estimates that Ethereum will reach almost $11,000 by end of 2025
PBC Ethereum Forecast
$5,000 – $9,000 Price Range for Ethereum Based on Gold Market Capitalization
It seems clear that in 2021, Ethereum has begun its next phase of expansion and adoption. As a result, Ethereum’s price will likely go much, much higher. We at Piggy Bank Coins believe the future is bright for Ethereum. We have made a clear case that Ethereum is a strong store of value, a deflationary asset with limited supply, strong security and a growing network of users.
Historically, Ether price has fluctuated, which hurt its reputation. However, Ether price has stabilized over the past 2 years. As the world economy stumbles through a massive recession and the US Dollar struggles to maintain relevance in a changing world economy, Ethereum may be the answer.
Future Ethereum Market Capitalization $600 Billion is Reasonable
According to the Visual Capitalist, the world gold market is valued at approximately $10.8 Trillion. Less than half of the value is in jewelry. Therefore, we can assume that gold, the world’s favorite “store of value,” is a $5 Trillion market. Ethereum has a market cap value of approximately $460 Billion (4% of gold’s value). Imagine what Ethereum will be valued at when it begins to realize its place as the digital silver to Bitcoin as Gold. An Ethereum with a market capitalization of $900 Billion is not beyond reasonable calculation for our Ethereum forecast.
A Ethereum market capitalization of $900 Billion equates to $8,000 Ethereum, priced in US Dollars. Pricing Ethereum in this range does not require much imagination. In addition, we have not factored in price impacts such as US Dollar devaluation/failure, other money supplies moving to Ethereum (M1, M1, M3, etc.), institutional adoption, and so much more. The Ethereum sleeping giant has awakened. Are you ready?
Ethereum Exchanges and More Information
Hopefully this article has helped you make a better decision about cryptocurrency investment and our Ethereum forecast. There are many exchanges that can be used to purchase cryptocurrency. Binance, Gemini, Kraken, Coinbase and so many more. Please do your research if you decide to invest. Finally, our Ethereum forecast is simply a guess and anything is possible. There are many scams in the crypto industry that are searching for an easy mark. If you want to learn more about Bitcoin and cryptocurrency, there are more articles by Piggy Bank Coins below.
It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.
In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.