Ethereum Price Prediction For 2021
Ethereum price prediction for 2o21: before looking at this let's first dive into what it is, what it does, and how to mine its tokens.
Introduction: What is Ethereum?
Ethereum is an open-source, blockchain-based decentralized platform that uses Ether (ETH), its native cryptocurrency. It offers developers a platform to create and deploy decentralized applications. Launched in 2015, Ethereum enables smart contracts and decentralized apps, or Dapps, to be developed and run without any fraud, downtime, and control or interference from a third party.
In other words, all the applications created on the Ethereum platform will be peer-to-peer (P2P) meaning no central authority takes part in the running of these applications.
A smart contract (a set of predefined IFs and THENs statement codes) executes or determines how the Dapp runs and what tasks it executes on the Ethereum blockchain. The smart contract is immutable meaning that once code has been written on it, it will remain unchangeable even by its original authors.
Ethereum is not only a platform, but it’s also considered to be a programming language running on a decentralized ledger technology. It’s one of the main platforms where developers develop and publish distributed applications.
How’s Ethereum Mined?
Mining in Ethereum if you don’t yet know is the process of generating a block of transactions to be added to the Ethereum blockchain. Ethereum, just like Bitcoin uses a proof-of-work (PoW) consensus algorithm. Mining is the creative channel of the proof-of-work consensus mechanism.
Ethereum miners – the nodes or computers running software – spend time and computational power to verify transactions and create new blocks.
Here’s a side note: Proof-of-stake will soon replace mining using the proof-of-work consensus algorithm in the next few years. You can start staking your Ether (ETH) as early as today.
In distributed systems, we need to ensure each person agrees on the order of transactions. A miner’s work is to pitch in by solving complex mathematical operations to generate new blocks. This serves as a way to safeguard the network from both internal and external attacks.
How Ethereum Mining Takes place
When a user writes and digitally signs a transaction request with a private key of some account, the user broadcasts the transaction request to the whole Ethereum network.
After identifying the new request, each node (computer) in the Ethereum network appends the request to their mempool. The mempool is a list of all transaction requests the nodes have identified but are yet to verify and add to the confirmed blocks.
At some point, the miner aggregates several dozen or hundreds of requests into the potential block. In a way, this action maximizes the transaction fees they earn while still staying under the block’s gas limit.
The miner then verifies and confirms the authenticity of each transaction request, and then runs the code of the request changing the state of his local copy of the EVM (Ethereum Virtual Machine). He then awards the transaction fee for every such transaction request to their account.
Ethereum’s cryptocurrency Ether (ETH) price, as of May 4th, 2021, at 1600hrs EAT, is $3,146.37. This has been Ethereum’s all-time high price since its inception. One Ether (ETH) as of the stated time equals 0.054 Bitcoin (BTC).
Ethereum VS Bitcoin
Ethereum’s native crypto, Ether, is arguably the second most popular digital token after the king of Cryptos, Bitcoin. Ether and Bitcoin are quite similar in many ways. A major similarity between the two is that they are both digital currencies traded through online exchanges and stored in various crypto wallets.
Both Ether and Bitcoin are decentralized, meaning they aren’t issued or controlled by a central bank or any other authority. In addition, both make use of blockchain technology.
As much as the two have some similarities, they also possess differences. While the two supreme cryptos are powered by the concept of blockchain technology and cryptography, transactions on the Ethereum network may contain executable code, while the data fixed to Bitcoin’s network are generally for keeping notes.
The other differences possessed by the two pioneer crypto tokens include block confirmation time and the algorithm these cryptos run on. An Ethereum transaction gets validated in seconds compared to the transactions in Bitcoin that take minutes. In terms of the cryptographic hash or algorithms, Ethereum uses Ethash while Bitcoin uses the SHA-256.
Another key difference is Bitcoin was created as an alternative currency and store of value while Ethereum was intended as a development environment where developers would create immutable coded contracts and decentralized applications running solely through its native currency, Ether.
An Ethereum wallet is an application that lets you interact with your Ethereum account. Take it as an internet banking application but without a bank. The wallet allows you to read your balance, send transactions and also connect to decentralized applications.
You need an Ethereum wallet to send and manage your Ether (ETH) funds.
Types of Ethereum Wallets
1. Hardware wallets: these are secure physical wallets that let you keep your Ether tokens offline. The pro of using this wallet to store your ETH is they are quite secure.
2. Mobile wallets: these wallets are mobile applications that make your ETH funds accessible from anywhere through a mobile device.
3. Web wallets: these wallets allow you to interact with your account through a web browser
4. Desktop wallets: these wallets are for those that prefer to manage their ETH through macOS, Windows, or Linux.
Ethereum’s Price Prediction 2021 and 2025
Ethereum will have over 700% gains by the end of 2021 and continue to rise and go beyond this in the coming years according to Teeka Tiwari. The Estimated price of Ethereum’s token, Ether by the end of 2021 will be $5,000 and beyond.
Tiwari has a track record of predicting crypto tokens that yielded over 1000% for FOUR consecutive years. According to Mr. Tiwari, Ethereum is scheduled to change the code on July 7th, 2021. The code to be appended on Ethereum’s code – code 1559 – he said, will act as a catalyst on Ether’s price.
Moreover, Ethereum is arguably said to be the next internet, and since many people are realizing the power of the decentralized ledger technology, they all want to jump in. no one wants to be left behind. And this takes us to these questions:
Frequently asked questions (FAQs)
Will Ethereum Reach $10,000?
A great answer to this is a huge YES! People are waking up to see what potential blockchain technology has. Many developers are now learning Ethereum’s programming language, Solidity, to create their Dapps. In the long run, and as time progresses this number will grow and for this reason, demand for Ethereum will also increase.
Can Ethereum Make Me Rich?
This one depends on what you are doing with Ethereum. If you are mining Ether, then you’re already making some good income. Retail traders or Commercial traders should buy Ether now and hold them until the end of 2021 or beyond (if you wish).
However, something worth noting is for maximum returns, you should buy Ether before July if you want to maximize your returns.
How Can I Buy Ethereum
You can buy Ethereum from leading exchanges or peer-to-peer lending platforms like Paxful or Remitano. If you don’t have an account in any of the leading crypto exchanges or peer-to-peer lending platforms, make sure to signup with these platforms for you to be able to buy your Ether.
Visit ethereum's official website to learn more about Ether. You can also visit our education page to get a brief description of it.
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