The cryptocurrency market has been volatile this year as news flow has stagnated, but this hasn’t changed my long-term outlook one bit. Eventually, this industry will become part of normal portfolios. While the transition will take years and be a bumpy ride, getting in early is how patient investors make the big bucks.
There are several coins I like for their long-term potential, and one I’m particularly bullish on is ethereum. This coin is second to bitcoin, but in my opinion it is the superior option, as its speed and lower cost make it the preferred method of moving money from one entity to the other.
Ethereum is also second to bitcoin in terms of market valuation. It currently has a market cap of $52 billion, which is just under half of bitcoin’s at $115 billion. However, based on the technology behind ethereum and its more practical uses, I believe it could surpass bitcoin over time.
Rather than being used as a currency alternative — similar to bitcoin — ethereum is used to send transactions and power smart contracts. It’s actually the leader in the smart contracts space, which is an area I believe blockchain technology will completely disrupt in the near future.
Vitalik Buterin, ethereum’s founder and leader, is the key to its future success. The Russian-born software developer who created the cryptocurrency in his early 20’s is called a “boy genius”
It’s also worth noting that ethereum has a large corporate following. In fact, last year, a group of thirty banks, technology giants and other organizations formed the Enterprise Ethereum Alliance, which is focused on creating business-ready versions — or “private blockchains” — of the crypto’s software. The group includes companies like JPMorgan Chase & Co. (NYSE:JPM), Microsoft Corporation (NASDAQ:MSFT), Intel Corporation (NASDAQ:INTC) and many other Fortune 500 companies.
I know that cryptocurrency investments are risky, but with risk comes the chance for great reward. And the reward potential for ethereum is huge for patient, long-term investors.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the “next” generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on. Click here for more information on the “NexGen” Experience.