Gas fees... enormous gas fees! Over the last days I could often see people moaning about the ETH fees and how they are waiting for Ethereum 2.0 to solve the issue. However, behind the scenes, Ethereum is gaining power and at the moment is burning bright and majestic as the Phoenix does!
By now I assume that we all know that Ethereum means open access to digital money and data-friendly services for everyone. The top platform and the block-chain used for thousands of applications and cryptocurrencies. I am talking about DApps, decentralized digital applications, and the newest DeFi coins and tokens, the ones that are storming the crypto-world, such as Statera, the Ethereum-powered deflationary token pegged to an index fund, a multiple assets pool.
Why Ethereum is burning bright?
Ethereum currently lets users send cryptocurrency to anyone for a fee. The fees are getting crazy due to an overwhelmed market, shitcoins and the rise of DeFi cryptocurrencies, Balancer pools and external factors. The number of decentralized apps is on the rise and they use the Ethereum block-chain to run, making the network a bit congested.
All the above issues will be sorted by Ethereum 2.0, when the power will scale to 100,000 transactions per second. This will mean a huge boost of confidence in Ethereum. Vitalik Buterin pointed out that the roll-up technology will play a major role in the scaling of Ethereum 1.0, allowing the creation of more complex applications by using smart contracts to make up the bulk of the base chain transactions and significantly reduce gas fees.
But ... how this will affect the ETH price? The only possible outcome is a price surge. Ethereum will be used more and more, will represent the building bricks of more DeFi assets and if the gas fees will drop significantly, than will create balance and happiness in the crypto-ecosystem. Ethereum success is linked to supply and demand, and at the moment the crypto-ecosystem runs on Ethereum.
ETH analysis and forecast
Ethereum was the heir of the throne since the launch, many expecting ETH to outclass Bitcoin, which never happened. The ETH price started from $0.40 in 2015, reaching the all-time high on the 13th of January 2018, surging to $1448.18 (£1043.65).Currently the ETH price per unit is around $284 (£222), with a steady growing trend over the last month, due to the announcement of Ethereum 2.0 and the integration in many DeFi project.
The ETH price forecast is highly positive and the upcoming upgrades will create the premises for Ethereum to challenge the all-time-high from 2018. If the current momentum is maintained, by the end of 2020, the ETH price could reach at least $500.
My ETH experience
Back in 2015 I sold 1.6 BTC for £320, choosing £100 profit over 6 months, instead of £25000 profit few years later. After this huge disappointment I didn't abandoned the idea of crypto investments and I had a gut feeling that Ethereum will be the next successful coin.
I bought 12 ETH in November 2016 for £98.86, than more at the end of the same month for a similar amount but at a cheaper price, paying 98.25 for 15 ETH. To round up the portfolio, I bought 13 ETH for £77.66, as a Christmas gift in December 2016. I paid £274,77 for 40 ETH and £13.11 fees, buying at 8.24, 6.55 and 5.98 per unit on those transactions. Let's round it up to £288 and move on to better days when the crypto market thrived.
In May 2017, the ETH price per unit was £37.70 so I sold 10 ETH for 376.99 to get back what I invested. At this point I made £90 profit and had 30 ETH in my portofolio and I decided to wait until I was happy to sell again. I set an realistic target and I told myself that I will sell some if the price per unit will rise above £150.In June 2017, the price per unit reached £172. I sold 6 ETH for £1031.96 just before my birthday and booked a family holiday in Tenerife. Up to date profit reached £1122. Set the next milestone at £220, which was achieved in a month, so in July 2017 I sold 4 ETH at €243.92 per unit, generating €975.65 profit. Half of the amount I re-invested in shares, crowdfunding, or fractions of properties but I will touch this subject in a future post.
Between July and August 2017 I sold the remaining 20 ETH, being more than happy with the price per unit, over €180, adding €1801.05 and €1850.80 to the amount of profit generated by Ethereum. With the last three transactions, the total profit gained by investing in ETH reached £5750 in one year.
In January 2018, ETH reached his peak, at £1043.65 and some will say that more patience would generate a record profit, but I can say that years after, I am more than happy about this investment, and the timing of buy/sell decisions. The 40 ETH I had could have been valued at £ 41746 at one point but I am happy about what this investment.
Conclusion
I am currently holding 1 ETH in my portfolio, which I plan to HODL until the price will go over £1000 and reinvest in new assets and rising stars. Keep in mind that the best moment to buy is when coins and tokens are added to the market or when the prices are very low, comparing the their average value in the past year.
Don't be greedy! If you are happy with the current price per unit, don't wait a day or two for some extra money. It is true that the price can keep growing but what if everything crushes and the price will drop lower then the investment? If at any point in time, you consider that this investment reached his potential and it's nothing more in there, sell and re-invest a fraction in another project, maybe a really cheap coin.
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Ethereum will keep rising. It hasn't started yet ooo