As I write this post, Ethereum is edging towards it's all time high. So I thought I would write a post explaining why I'm investing in Ethereum at the moment. Of all the cryptocurrencies, I feel it has the most potential to be something truly huge – that doesn't mean I'm still not bullish on Bitcoin and other blockchain platforms, it's just I find ethereum to be the most interesting.
It's more than just a store of value
I've written in the past about how Bitcoin could be used as a store of value. And while Ethereum could definitely fill the same purpose, Ethereum has some potentially groundbreaking other uses.
Ethereum is trying to solve a huge computing problem – centralized apps. They are awesome and we use them everyday, but there are some cases where a decentralized app or service would be much better. Ethereum is trying to be the platform for decentralized apps. So if it succeeds – it's value will be huge!
It could go Mainstream
It's not user friendly at all. Using Ethereum isn't user friendly. For the average joe it would be way too complex. But I see this as an upside. Ethereum has managed to gain this much value while still being user unfriendly. Imagine how much more value it will have when it becomes more user friendly!
And while a number of big companies including Microsoft have begun developing using Ethereum (mainly for experimental purposes), it's still not being used by mainstream developers. The applications being built on and for Ethereum are niche, edge case apps. This is also another potential huge upside.
Where I'm investing in Ethereum
I use Coinbase for a lot of my crypto transactions. I know the fees are a bit higher than other places, but you can't beat it for convenience. And as a company, you know they're not just going to up and disappear overnight. So you can't beat them for trust either. As I'm Australian, I also use the excellent CoinSpot service which is built for Australians.
eToro is the place to invest if you're looking to trade Ethereum – ie. profit from both the ups and downs. This is because you can open short or long positions and also leveraged positions. Ethereum is also part of eToro's CryptoPortfolio – which is like a managed portfolio for cryptocurrency.