Ethereum (ETH) is an open-source platform used to develop and implement new decentralized applications – it is now considered an invaluable resource by many because the Ether network supports the development and creation of new applications built on its infrastructure.
Recent upgrades to the network are helping the network scale much faster and reduce the cost of transactions, further pushing up the price of ETH.
Does Ethereum Have a Future?
For now, the big question is where the price of ETH ends up by the end of 2021.
Experts cite a handful of upgrades to the network in 2021 that should reduce the currently high cost of transactions and drastically increase utility.
The upgrade most eyed by investors is the Ethereum Improvement Proposal (EIP-1559), which will overhaul the transaction fee system used by the network. Instead of sending fees to miners who complete tasks, users will send the gas fee to the network itself, which will destroy that ETH, thus reducing the overall supply, subsequently increasing its value.
Essentially, Ether represents a sustainable, function-oriented approach to cryptocurrency that will support the future of decentralized finance (DeFi). However, many people remain on the sidelines, waiting for government regulations to see implementation.
Will Government Regulation Hurt Ethereum?
While long-time cryptocurrency investors bemoan the thought of regulation limiting the freedom currently available in the market, big investors and companies see the inevitable implementation of such regulations as a source of stability that could lead to mass adoption.
As a whole, many see these changes as good. When the markets are regulated, they become safer for everyday users, and ETH, its various supports, and the applications it enables can become widely accessible to the layman.
Conclusion
The Ethereum network arguably shows more promise than any other cryptocurrency due to its real-world applications and ability to store value.
Ether represents the future of programmable money and smart contracts in a way that legacy cryptocurrencies such as Bitcoin (BTC) cannot. Because the Ether network supports the development of and allows for the creation of new applications on its infrastructure, it’s potentially a more valuable resource in the long term.
For example, in a recent Forbes article, a panel of crypto experts predicted the asset could rise as high as $19,842 by 2025 and that it could become the most widely transacted cryptocurrency by next year due to its expanding utility. These experts cite the array of upgrades to the network in 2021, likely to reduce the currently high cost of transactions and drastically increase utility.
Simply put, Ethereum undeniably has an integral role in the future of cryptocurrency and is more than likely here to stay.
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