Ethereum is the world’s second largest cryptocurrency, surpassed in market value only by Bitcoin. However, although Ethereum still has a long way to go in order to overtake Bitcoin, there are some significant differences between the two. And it is those differences that have some experts predicting a meteoric rise for ETH in the near future. The current worth of 1 ETH is hovering just over the $1000 mark. For anyone interested in making an investment, the question could be ‘how much might 1 ETH be worth in 2030’?
Predicting the future price of any currency is always a tricky business. However, there are many analytical tools at the disposal of experts in order to help them do so. As individuals and investors we don’t necessarily need to also be data analysts. The various forecasts are there for us to read. However, a word of warning — they are merely predictions and should never be construed as actual financial advice. Having said that, this is what some of the experts are saying.
The more conservative analysts say we could be looking at a maximum 2030 price for ETH of approximately $18,000. More optimistic experts have gone as far as predicting a rise to $150,000.
Not just a Cryptocurrency
There is an important difference between the current market leader Bitcoin and its closest rival Ethereum. That is that while Bitcoin was intended purely as a payment method, Ethereum was designed to expand the use of the same blockchain technology to many diverse applications. In fact, Ethereum’s currency is actually called Ether. It can be used for financial transactions, kept as an investment or used as savings. Beyond the functions of Ether, Ethereum can handle much more complex financial transactions.
Ethereum can also be used to store data and run applications. As it is a decentralized network, this means that the users control the data. In contrast, if it used servers owned by one big company such as Google, then Google (or whoever owned the servers) would of course control the data.
Perhaps the most exciting thing to be offered by Ethereum are self-executing or ‘smart’ contracts. The parties to the contract agree to deliver goods or services. This is coded on the Ethereum blockchain and once the conditions of the contract are met it self-executes and pays out Ether as required.
For the above reasons, Ethereum is a second generation cryptocurrency, and most experts believe that its vastly expanded capability will eventually leave Bitcoin standing.
Ethereum 2.0 Upgrade
The long awaited upgrade to Ethereum which is happening in various phases and could be set to complete in 2022, will introduce various major change in the way Ethereum operates. It will split the blockchain into many smaller blockchains, which will vastly improve transaction speeds, but perhaps the most important change will be from the proof-of-work protocol to the proof-of-stake protocol.
At present both Bitcoin and Ethereum use proof-of-work. This process is very power-hungry and using vast amounts of electricity.
On the other hand, proof-of-stake is the system where owners of a currency ‘stake’ an amount of it (for ETH this will be set at 32 ETH). In return the protocol randomly chooses users to verify transactions and they are rewarded in currency. This protocol is much more efficient and greener as it uses 99% less electricity.
It is also worth noting that while Bitcoin is ultimately limited to 21 million coins, ETH is unlimited and currently at around 120 million.
Conclusion
The flexibility and diversity offered by Ethereum, and its unlimited potential for new and inventive uses of the blockchain, as well as its soon-to-be greener credentials, may be why experts are predicting such a huge rise in the value by 2030. This is one to watch.