After the record growth in cryptocurrencies in 2017, the owners of cryptocurrency wallets are worried about the question of how much Ethereum will cost in 2020 and which mining tools will be most effective.
While Bitcoin expects halving in May, ETH also expects a series of changes and updates. They can significantly change the value of the second most popular digital coin, both in the direction of growth and decline.However, the price of Ethereum has risen by about 92%, and it looks like it can even reach $ 300.
According to TradingView’s analyst, by the end of 2020, Ethereum could reach even $ 320. He believes that this is an achievable mark for cryptocurrency.
Ethereum growth forecast for 2020
To begin with, it is worth noting that Ethereum technology is very similar to Bitcoins and differs only in some details. For example, the transaction speed of this cryptocurrency is lower. This difference in 2017 led to a complete halt of all transactions as a result of the massive use of the CryptoKitties application.
Based on this, the ETH forecast for 2020 is highly dependent on an increase in transaction speed. The team of programmers who deal with this problem promise a speedy solution to the issue, however, they do not provide specific deadlines.
Of the other reasons that can lead to an increase in the value of this coin, it is worth noting:
- Speculative risks
A powerful pool of large owners of crypto-wallets has formed in the digital coin market. Their combined actions can cause a sharp increase in the price of Ethereum.
- Worldwide recognition of cryptocurrencies
If in 2020 some countries recognize crypto as payment, then this will greatly affect their popularity and value.
- Improving transaction reliability
This action will also lead to massive demand for the coin and an increase in its price.
One of the reasons why you should buy the Ethereum miner now and earn next year is that another update of this cryptocurrency is coming. According to forecasts, it will lead to a sharp increase in value.
The three previous stages of the development of ETH, which took place in the period 2015-2017, should continue in 2020 with the last action, which should complete the evolution of the cryptocurrency and affect the forecast of the Ethereum rate in the future. After the update, the coin will finally come to the Proof-of-Stake algorithm, which will significantly reduce energy consumption and increase the speed of transfers.
In December 2019, the new algorithm entered the final stage of testing. For owners of mining farms, this innovation is a huge plus, as Ethereum mining will become cheaper.
Growth of ethereum
According to the Proof-of-Stake protocol, calculations will not require a lot of energy, however, some amount of money will be required to check the extracted blocks. This action is called skating.
As a result, the fourth phase of the development of ETH, which is called Serenity, will make the cryptocurrency more reliable, easy to use and mine.
An important change will be the transition to sharding translation, which consists in scaling the Ethereum network. In this case, the blocks are divided into a set of transactions that are processed separately, which significantly speeds up all actions and increases the throughput of the entire system.
In general, 2020 can bring a sharp increase in the value of this cryptocurrency. However, this will happen only if the developers fulfill their promises and a successful global conjuncture.