Ethereum Expectations and Predictions 2021
Ether is the biggest cryptocurrency after bitcoin. That’s why the expectations are set high. Let’s take a closer look at what to expect from Ethereum in 2021!
But first, let’s have a closer look at the difference between Ethereum and ether. These terms are often used interchangeably, but there is a difference.
Ethereum refers to the network and the blockchain. You can find all transactions of a cryptocurrency on its blockchain. On the Ethereum network the coin ether is used to pay with. In short: Ethereum is the network and ether is the coin.
Enough lecturing, let's go!
Building new apps
Ethereum has a different objective than Bitcoin does. Developers can use the Ethereum network and its blockchain to build apps on. In crypto lingo these are also called dApps: decentralized apps.
Within these dApps, tokens are used as means of payment. Tokens are digital coins that you can spend on the Ethereum network. There are many tokens built on the Ethereum system.
What to expect from the ether price?
Unfortunately we lost our crystal ball, so we can’t give you exact numbers. But we can give you an indication based on ether’s past.
The ether price shot up like a rocket during 2017 and the beginning of 2018. This was caused by the immense amounts of initiatives that were launched on the Ethereum network. This was done through Initial Coin Offerings (ICOs).
Through an ICO you can become one of the first owners of a new token on the Ethereum network. When you send out ether to an address that’s linked to the ICO, you’ll receive tokens in return. ICOs were extremely popular in 2017 and 2018, and because you needed ether for ICOs, the demand for ether increased enormously. That increase in demand led to a great price increase.
But that was then. ICOs are less popular now, due to strict governmental oversight. Luckily, Ethereum is more than just ICOs! If companies and individuals continue to build dApps on Ethereum, the price is likely to pick up in 2020 and 2021. The highest price ever for Ethereum was 1,200 euros in January 2018. Will this all-time high be surpassed in 2021?
What to expect of the Ethereum technology?
What might be even more interesting than the ether price is the developments made on the Ethereum network. When the technology is blooming, it attracts companies that want to build dApps on the Ethereum network. And when more and more dApps are built, the demand for ether increases, which leads to a price increase. Talk about going full circle.
The founder of Ethereum is Vitalik Buterin, and he has great plans for both Ethereum and ether in 2020 and 2021. The new project is called *drum roll*... Ethereum 2.0! We hope he’s more creative in developing new functions than he is in giving names though… These are some important improvements Buterin is ready to make:
Increased scalability in 2021
At the moment, the network will kind of crash the moment an app has immense success. Think of the CryptoKitties hype in 2017. It completely congested the entire network. We do understand the hype though, just look at how cute these kitties are!
By 2021, the Ethereum network should be able to process a lot more transactions. Buterin is planning on implementing so-called ‘shards’ in order to achieve this goal. Instead of all computers processing all transactions, the network will be divided. Each piece of network is responsible for its own set of tasks. We’ll have to wait and see if it actually works, since no one has ever used this technique before.
Ethereum is planning on making mining more energy efficient
Okay… This might get a little technical, but bare with us if you’d like to learn more about how transactions are processed on the network.
Currently, transactions on the Ethereum network and transactions on the Bitcoin network are processed in the same way: whoever has the most computing power can process a transaction block the fastest, and receives the block reward. Processing those transactions requires a lot of energy. Thousands of computers are processing transactions 24/7. This system is called Proof-of-Work, since it is based on the amount of work you perform.
Ethereum’s aim is to switch to a more energy efficient method, Proof-of-Stake. This is an alternative that requires less energy and computing power from the mining computers. Instead of computing power, owning ether will now be important. If you own a lot of ether, you are allowed to add a transaction-filled block to the blockchain. So you don’t invest external money and energy, but you invest the coin within the system itself. You put an amount of your ethers at stake (hence the name) when you add a new block. You’ll get back your stake, as well as a compensation, when all transactions turn out to have been correctly verified. If you’ve included false transactions, you won’t receive a compensation AND you will lose the ethers you put at risk.
This new method will be implemented in phases, starting from 2020.
It’s going to be a great year
To summarize, the future is looking bright for Ethereum, both pricewise and regarding the technological developments. And you know what’s even better? When you use BLOX, you’ve got front row tickets! BLOX is an all-in-one cryptocurrency app. You won’t need any technical knowledge, all you need is your smartphone.
Try it out! Already thousands of people preceded you! Download the app here:
Buying ethereum in four steps
BLOX is completely free to download for iPhone and Android. Check out the App Store or Google Play on your smartphone, and look for ‘BLOX crypto trading’. Or keep it simple and click one of the buttons on the top of this page. Downloaded the app? Then it’s almost time to buy ether!
Creating an account is easy, you can register within one minute. Use your email address or one of your social media accounts.
Fill out your name, enter your email address, and come up with a strong password. Read the terms and conditions and click ‘Accept’. We’ll send you an email as verification. Click the link within 30 minutes and continue to the next step.
Just like your Nokia 3310 back in the day, you can charge the credit on your BLOX account. But instead of walking to the store in order to buy your credit, it only takes a few seconds to charge the credit in your BLOX app.
Open BLOX and choose the Euro icon. Select your preferred payment method, like bank transfer or credit card, and charge as much (or as little) as you please. Just one more step, and before you know it, you own some ether.
BLOX is installed, you’ve created an account, and your credit is charged. You can spread over various crypto, or go all-in on ether. Or maybe wait a little longer..? The choice is all yours.
Go to the Markets section on the bottom left, choose ‘Ethereum (ETH)’, and find out everything about the price developments of the last day, week, or month. Happy about the current price? Click ‘Buy’ and choose how many ether you’d like to purchase!
Naturally, selling ether is just as easy as buying it.