Ethereum just made an all-time high, how much money would you have if you invested $1,000 a year ago?

In October, Bitcoin was not the only digital currency to hit an all-time high.

Yesterday, the price of 1 Ethereum coin also set an all-time high, at $ 4,461.96, bringing the market capitalization of the world’s 2nd largest digital currency to over $ 520 billion.

If you bought Ether 1 year ago, you made a big profit. Spending $ 1,000 to buy Ether on October 29, 2020 (according to the price on Coinbase at that time, it was $ 382.82 / dong), investors bought 2.61 dong. Calculated at yesterday’s price, 2.61 Ethereum coins are worth 11,645.71 USD, which is an increase of more than 1,000% compared to 1 year ago.

This is 3 times more profitable than Bitcoin. $1,000 invested in Bitcoin a year ago only yields about $4,476 at the moment.

During the same period, the S&P 500 index gained 38.8% – a modest gain compared to the crypto world. Of course, stocks are still considered a more reliable asset because of their much lower volatility than cryptocurrencies, and statistical data shows that the S&P 500 has been profitable for investors over the past decades. .

The reason for the strong increase in Ether is that the Ethereum blockchain network has just had an important upgrade on October 27. Called Altair, this update is part of the integration process into Eth2, a new infrastructure system. Currently, the process of mining Ethereum consumes a lot of electricity because miners have to solve super complex math problems to validate transactions. Altair is important because it is a test of whether Ethereum can move to a proof of stake (PoS) model, where users can validate transactions based on how many coins they hold.

Eth2’s goal is to make Ethereum safer, more sustainable, and easier to scale.

According to experts, the thing to remember when investing in cryptocurrencies is that historical data cannot guarantee future returns. You should only invest when you have anticipated the risks and are ready to accept losses. Instead of investing to buy a large amount in just one time, divide it into many small times to spread the risk.

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