Are you familiar with “middle-child syndrome”? Then you’ll know how ethereum (CCC:ETH) has felt all these years. Since January 2020, ETH has trounced bitcoin (CCC:BTC) with a nearly 750% return. Yet, the world’s #2 cryptocurrency received less attention than its big brother BTC or problem-child XRP (CCC:XRP).
But don’t be fooled. Ethereum looks set to break out in 2021. As its technological advantages gain steam, Ethereum investors could see $1,500 in the near term and $2,500 sometime by the end of 2021. But strap on your seatbelt and hold on tight; it’s going to be a wild ride.
- Ethereum sits on a superior technology.
- ETH has greater room to grow.
- Volatility will remain high.
Ethereum 2021: Better than Bitcoin
The future of ethereum wasn’t always so bright. In June 2016, the infamous DAO Hack sent $55 million of ether into hacker’s hands. And a rash of bitcoin clones like bitcoin cash and dogecoin made ethereum look like yet another shiny bauble in a massive cryptocurrency soup.
But ethereum quickly recovered. To handle the DAO Hack, the ethereum community decided to effectively roll back its blockchain to undo the damage. It regained its #2 position by 2018.
Ethereum holds several technological advantages over its older bitcoin and altcoin siblings. Firstly, the cryptocurrency acts more like a contract than a coin. That makes it more like Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Wallet or Apple’s (NASDAQ:AAPL) Apple Pay, rather than a $100 bill. For instance, an e-commerce buyer might hold ETH in an escrow that automatically releases payment on receipt of goods. Bitcoin, on the other hand, offers no such mechanism.
Finally, it has a theoretically unlimited supply, unlike bitcoin’s 21-million-coin