Cryptocurrencies have taken significant hits in 2022, losing nearly $2 trillion. This brutal comedown at the back of a massive rally in 2021 can be attributed to runaway inflation, rising interest rates, and the increasing fear of recession. As a result, many speculative investors have been shying away from cryptocurrencies. But things are changing.
Significant coins like Ethereum have realized a nearly 55% price increase, and the price change is likely to continue ahead of its 2.0 upgrade β a transition from Proof of Work to Proof of Stake. This anticipated move makes it arguably the Best Cryptocurrency to invest in 2022. And here are more reasons why you should invest in it.
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Maximum Cap
This cryptocurrency is a good investment as a crypto minter because it has no maximum cap limitation. This means that, unlike other coins with a max cap, you can never hit the maximum supply no matter how much you mint or produce. This feature makes it lucrative as you will continue gaining as long as the price increases, as predicted by experts like Eberhardt.
Functions
Ethereum has many uses other than serving as a digital currency. Software engineers have used it to store data for some third-party applications. It has also gained traction among artists who sell their artwork through nonfungible tokens (NFT). This numerous functionality makes this cryptocurrency a good investment since the demand for its blockchain technology is rising.
Network
This crypto currencyβs blockchain has an extensive network in the crypto community, hence stability. The fact that many crypto enthusiasts use it makes it a worthwhile investment. You can either join the market as a miner or trade on the various platforms available. Whichever the case, you are sure that at no point will the investors in the extensive network sell to cripple the market.
Innovations
Metaverse is an integrated 3D virtual world innovation focusing on social connection, and Ethereum is at the forefront of its creation. Every tech giant is racing towards this innovative idea despite no existing infrastructure. However, Ethereumβs strong developer base and high-security specifications make it the go-to option for creating various verticals. Itβs safe to say that until an infrastructure overtakes Ethereum, developers will continue using the blockchain technology hence high demand.
Eliminating Intermediaries
Transactions have depended on third-party inputs for a long time. These intermediaries, such as lawyers that pen contracts, have made such transactions costly, but Ethereum has changed that through its decentralized network. This is because distributed nodes verify the transactions, and anyone in the network can participate in the process without disrupting it. Many users have embraced this use, and it has the potential to go main stream in the future.
The value of some major cryptocurrencies is bouncing back from their all-time lows. However, not all coins are increasing in value. Ethereum is experiencing a price change due to the anticipated merger that will change from Proof of Work to Proof of Stake. This change makes it the Best Cryptocurrency to invest in 2022. It would be best to use the information you have read here if you are still undecided.
