The price of Ethereum keeps rising and pretty much everyone is just waiting for the moment when the bubble is going to pop. But what to do when it actually happens?
Does it make sense to sell, get as much money as possible out from Ethereum and stay safe? Sure it does, but only if you will make it in time and you are willing to buy back when Ethereum drops to a lower price. Because otherwise you would lose a lot of potential money.
Most of us here at Invictus believe in the long-hold. We honestly believe that Ethereum is going to rise above the crowds of random novel cryptocurrencies because it is more than just a currency. Well, as a matter of fact, Ethereum was never intended to be currency.
Instead, Ethereum is a platform on which you can build many different and interesting things. And Ethereum itself is just a tool that allows this wonderful new platform to work and operate.
Ethereum allows you to create distributed blockchain applications that use the technology of smart contracts – mechanic which allows two sides to do pretty much any kind of business dealing without a third side that takes a cut.
In today’s world we are already to used to various services that attack the established status quo and recreate the way businesses work – we can mention the way Uber disrupted the urban transportation industry or Airbnb the accommodation industry.
In both cases the services allowed normal people to connect with other normal people and simply exchange services in a way that just wasn’t possible before on a larger scale. But there’s always a third side. Uber and Airbnb are always there to take a cut whenever the two people want to exchange money and services. Obviously they provide the environment and interface which facilitates the exchange but are their fee’s adequate to what they provide?
Obviously its a philosophical question but we don’t need to bother ourselves with finding the answer.
Ethereum via smart contracts technology provides a platform where these kind of exchanges can happen without ever needing the third side, thus lowering the “exchange facilitation” fee to bare minimum.
The new Ethereum based uber 2 or airbnb 2 will allow you to get a ride or find an accommodation in other country without ever needing to pay anyone else besides the other side of the exchange.
And this technology will be fueled by Ethereum – the only thing that is paid for the smart contract is a transaction fee (which is miniature compared to today’s classic service “fee’s”) which is paid directly in Ethereum.
This is the reason why we believe it’s a good idea to hold and wait for the price to slowly climb up, even if it crashes in the following weeks or months (which it simply has to as the growth is way too rapid and artificial at the moment – Ethereum isn’t massively used yet). Because soon it’s going to become a fuel of some incredible applications and its use will be justified (unlike many other existing secondary cryptocurrencies).