Did you know that the price of Ethereum is also predicted to increase this year? So, apart from Bitcoin, Ethereum can also add to your collection of crypto assets.
Ethereum has actually solidified its position. Early in 2021, the price of Ethereum has again broken its highest level in history past IDR 17 million. However, Ethereum’s rise doesn’t end there.
It is predicted that the price of Ethereum will rise in the middle or end of 2021. This is why you need to consider collecting Ethereum, besides Bitcoin.
Ethereum is increasing not without reason. Ethereum is evolving into Ethereum 2.0. Ethereum innovation will certainly also attract attention for crypto asset activists around the world.
But, not only from the demand side. This evolution will affect the supply (supply) of Ethereum which has been a problem.
So, how exactly is the supply of Ethereum and how does it affect the price?
Check out the explanation below.
Ethereum or also known as Ether / ETH is the most favorite crypto asset after Bitcoin. ETH is also listed as the second highest volume crypto asset after Bitcoin.
Sometimes, the volume is below USDT. Naturally, because USDT is the most widely used crypto asset for money changers or payments.
Ethereum is run by a company called the Ethereum Foundation. This crypto asset was created by a 19 year old boy named Vitalik Buterin in 2014.
Ethereum has a utility as a crypto asset which is a network for the establishment of other crypto assets underneath. The network name is ERC20. There are many crypto assets that are run on ERC20, such as Uniswap, AAVE, and others.
Apart from that, ETH is also a crypto asset that is mined, like Bitcoin.
Bitcoin is the only asset in the world that has a limit or limited supply. There are only 21 million BTC in the world. Currently, 18.5 million BTC have been circulated or successfully mined.
From this point of view, Ethereum has its drawbacks. The supply or supply of Ethereum is unlimited or unlimited. This is because ETH is a means of payment on the ERC20 platform or network.
However, people still see the weakness of ETH which cannot be used as a long-term investment because of the unlimited supply. Of course Bitcoin is more desirable than Ethereum.
To fix the problem of unlimited supply, Ethereum will evolve into Ethereum 2.0. Indodax.Academy has previously discussed the evolution of Ethereum 2.0 in terms of technology or changing the scheme.
Later, Ethereum will no longer be mined after the completion of ETH 2.0 evolution or after phase 2. Later, Ethereum will be obtained by staking or guaranteeing.
At the launch of ETH 2.0 phase 0 at the end of 2020, 1.2 million ETH or 1.1% of the total ETH supply was locked or not circulating.
Ethereum 2.0’s evolution will have a long time to come. This is because Ethereum is cleaning up and covering up the shortcomings that have occurred so far.
The Phase 1 launch will take place this year. Later, there will be a number of Ethereum which will be locked again. So, the limit in circulation decreases.
However, it is not certain how much Ether will be locked. Then phase 2 will also take place next year.
Ethereum 2.0 will lock down the circulation of Ethereum massively and the supply or circulation of Ethereum will decrease. This is the reason why the Ethereum price will increase. Why is that? You can listen to the analogy below.
The analogy is if a large number of basic food items are stockpiled, the price of the basic food in circulation will increase.
Evidently, a month after that, the price of Ethereum increased more than 2 times. In the Indodax market, initially the Ethereum price was sold for around Rp. 8 million, then it increased to past Rp. 17 million.
So it’s no wonder that Bitcoin grabs attention first. Because Bitcoin has a limited supply from the very beginning.
It was vulnerable when Ethereum was upgraded to Ethereum 2.0 for a long time. In fact, it could be next year, or 2023.
Naturally, because the Ethereum Foundation needs time to clean up over all the shortcomings of Ethereum that have occurred so far.
However, don’t worry. Precisely with that long period of time, the price increase for Ethereum will continue to occur in the coming years.
We can conclude that the evolution of Ethereum 2.0 will make Ethereum a long-term investment asset. It’s the same as Bitcoin.
So, even though Bitcoin and Ethereum are already expensive, the price is likely to increase again. Why don’t you buy Ethereum, while the price is going down a little in early 2021. You can buy it on the Indodax.com market with Rupiah.
You can still read the full explanation about Ethereum on Indodax.Academy. There are many explanations for Ethereum.
You can also read and watch other interesting information on the official Indodax website. Make sure you don’t miss it so you can still get enough money when trading.