Hello bitcoiners, today in this article we will explain the possible risks that are associated with the investment in Ethereum’s native token ETH.
At present, the price of Bitcoin is $42,500 and the price of Ethereum is $31,50. The majority of the newcomers in this field will first come to know about Bitcoin and Ethereum. And obviously, the majority of the newcomers will consider investing in Ethereum instead of Bitcoin. Because it is very common thinking that Bitcoin may not surge with rapid speed but Ethereum may. Overall people think that Bitcoin is overpriced but Ethereum is not. In reality, both of these two Blockchain network giants are best at their place.
Right now both Bitcoin and Ethereum are better in terms of adoption and decentralized support. So a newcomer may consider buying any of these two coins for the long term. But here people needed to understand all possible risks associated with the Ethereum investment. There are mainly three risks associated with Ethereum investment, namely cryptographic engineering, second is Fud and third is competition.
Cryptography Engineering in Ethereum
Right now Ethereum blockchain network has the highest number of active developers over other crypto projects. And this is showing that the support for Ethereum is more than the Bitcoin community, in terms of technical point of view.
The bitcoin community and its developers are not taking any kind of serious decision to shift the Bitcoin network to follow different rules. And also Bitcoin was made to transfer only Bitcoin instead to support third third-party contract-based crypto assets unlike Ethereum’s ERC20 allows to people mint their own crypto assets to run on the Ethereum blockchain network.
Here the team of the Ethereum blockchain network is actively doing work, to bring the Ethereum blockchain network better in this increasing competition. And this competition is keeping increasing day by day, which hints that developers needed to write and update the code of the Ethereum blockchain network to bring more efficiency to the network.
These types of cryptographic engineering are needed but these may end up into a big issue. In the past, we saw some flaws with the Ethereum blockchain network because of bugs and small engineering. So there are chances that in the future Ethereum blockchain networks may face some kind of bug/error during some kind of engineering and that will end up into a very big fud.
We know very well that FUDs are a very common thing in this crypto Industry to facilitate pump and dump.
Absence of Ethereum Creators
Right now the actual team behind the Ethereum project is available. Vitalik Buterin, Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin are known as creators of the Ethereum blockchain network.
Right now all the co-founders except Vitalik Butterin are working in their ways in this crypto Industry with their own blockchain projects.
Vitalik wrote the Ethereum blockchain network’s whitepaper and other co-founders supported Vitalik to complete the whole work. Right now, Vitalik is alone in the Ethereum project because he was always in favour to use Ethereum as a non-profit and peer-to-peer blockchain network instead to use it in any kind of business or institution-based payment system more unlikely to Ripple.
Time is everything and bad times don’t come with prior notice. If Vitalik get died or any person will spread fud about the false death news of Vitalik then surely Ethereum’s native token will face a big dump. Maybe it sounds a very dramatic fact to consider behind the negative point of view. But unfortunately, it is the truth and already it happened once in past.
On the other hand, Bitcoin is fully outside of any owner/founder/creator. So there are no chances that Bitcoin may face any plunge in its price because of the death of any person.
Right now Ethereum has 23,00 active monthly Developers, which is 4 times over any of the crypto project’ developers. So there is no tension about the future and development works in the Ethereum blockchain network.
Competition in the Crypto industry
Bitcoin completed its age of a total of 13 years. Bitcoin is still in the position of the king but here Ethereum is only standing at second position. However, the support for Ethereum is at second rank after bitcoin but it is a big reality that Ethereum is facing very big competition in this market.
If we look at the dominance of Ethereum in this crypto industry then it is getting down over year by year. And all is because of increasing competition.
Right now Cardano, Solana, Avalanche like blockchain networks are doing much better. All these networks are better choices in terms of high scale and high efficiency-based transactions. And rapidly these networks are trying to overtake this market.
So there are chances that people may move toward the other flagship blockchain network and that may end up into a big downfall for the Ethereum blockchain network adoption.
Through this article, we tried to explain why a crypto Investor should not choose Ethereum’s ETH over Bitcoin. But the main intention of this post doesn’t mean that people should not invest in Ethereum. To remain always in the safe zone, always try to put your eggs in multiple pots. That means, wise crypto Investors will be those, who will invest in Bitcoin, Ethereum, and other flagship assets, instead of going all with a single one.