July 2, 2021 / Interesting

Why You Should Buy Ethereum For The Long Term In 2021: 3 Main Reasons

ethereum forecast

In this article, we will analyze 3 reasons why you should buy Ethereum.

The author of the TOP-1 cryptocurrency YouTube channel, Ben Armstrong, has long been in favor of Ethereum, and here are the reasons why he advises buying it right now with an eye to the long term.

Ethereum Prediction By Ben Armstrong

Ben came in from afar, and remembered the days of the early Internet, when it was inconvenient to use it due to the high cost and low speed of communication. This happens with technologies at an early stage of development, and it draws a parallel with Ethereum, which now cannot be called the most convenient, fastest and cheapest blockchain.

But as the Internet became widespread after the transition to new communication protocols, so Ethereum will soon make a tremendous leap in development and attract a huge number of users after the transition to the POS algorithm. Recall that Ethereum was originally conceived as a POS blockchain, but at the time of its launch this protocol was insufficiently tested and therefore decided to use the Proof-of-Work algorithm, which had already proven its reliability.

According to the latest statement by Vitalik Buterin, the transition to Ethereum 2.0 took much longer than expected. But its full-fledged version can already start working in 2022. If such a wait seems like a long time to someone, then the author of BitBoy Crypto pays attention to the second-level solutions. Some of them are already working successfully – Loopring and Polygon.

The first already has its own decentralized exchange, and the second has built a whole ecosystem of many decentralized applications. And the main DEX exchange on Ethereum, Uniswap, will also offer low exchange fees in the near future, because work is already underway to connect to two second-tier solutions at once, Arbitrum and Optimism.

Here we also want to add that just yesterday the Ethereum token exchange function appeared on CoinMarketCap. Note that CoinMarketCap is owned by the Binance exchange and they have their own blockchain with tokens, but they primarily connected the exchange for Ethereum.

The next important point is the triple halving approach. The point is that an update is already being tested on the test network, which burns part of the transaction fees and its implementation in the main blockchain may occur before the end of the summer. This is the first stage, which will begin to reduce the supply of Ethereum in the market, and the second and third are staking Ethereum in a smart contract for version 2.0 and blocking TOP-2 cryptocurrencies in various DeFi applications. Thus, the supply of free Ethereum on the market is rapidly declining and may well become deflationary.

Ben believes that by analogy with the growth of Bitcoin after each halving, when the miners’ reward is halved, Ethereum may have a similar effect.

Buying Ethereum in 2021
And the last argument is NFT tokens. BitBoy does not believe in FUD that this trend is dying, and indicates that more and more celebrities want to make money from it and are turning to issuing collectible tokens. In addition, the Sotheby’s auction house with a huge history and reputation will also host the sale of NFT tokens. And actually the sales themselves, the hype may be dying down, but the volumes in this market continue to grow.

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