The past couple of years have been awesome for the cryptocurrency
world. The crypto market has gained the interest of thousands of investors and
with the meteoric rise of Ether and Bitcoin, the industry has continued to get
more attention and popularity.
Let's take a look at Bitcoin for instance.
In
December 2015, one BTC was worth around $450 and now, in December 2017, the
same BTC is worth well over $16,000. Now, who wouldn't want to invest in a
market like this?
The rise associated with Bitcoin can also be found in Ethereum.
Although the price of Ether isn't jumping as much as that of Bitcoin, it's rise
can still be described as meteoric as about a month ago it was 300 dollars and
now in December, 2017, it's a little over $700. Current ethereum price is near around $3000. You can check the live rate via Ethereum price.
This increase in prices, otherwise known as volatility, is
currently making a lot of Ethereum investors concerned about the
cryptocurrency. So in this article we'll be considering what the future holds
for Ethereum. Will it be bigger than Bitcoin as proposed? Is it a bubble that
will burst soon? Let's take a look at what the future holds for Ether.
PRICE PREDICTIONS FOR ETHEREUM
One thing you need to keep in mind is that making a short term
price prediction, especially for cryptocurrencies like Ethereum, is a very
difficult venture. I mean look at the volatility; it can lose 30% of its value
today and gain up to 45% again tomorrow. Just look at the case scenario we
talked about above -a profit margin of over $400 in one month.
With the volatility rate associated with this cryptocurrency,
there's little to no technical analysis for short term prediction. Even the
long term predictions we'll be making in this article are still susceptible to
change. But we have managed to make careful considerations, carried out
efficient researches, and narrowed everything down as best as we can. So let's
take a look at the predictions that have been proposed by market experts.
1. ETHEREUM MIGHT PASS THE $1000 MARK IN 2018
According to Investing Haven, a market news and analyst website,
the price of Ether is bound to surpass the $1000 mark in 2018. If it doesn't
happen next year, then it surely would before 2020. This is a pretty decent
prediction given the rate at which the cryptocurrency is fluctuating. According
to the website, the price prediction is based on three important factors, and
they are:
The Supply of Ether- Currently, there are ninety two million Ethereum coins in circulation.
Although, there's a chance of this number increasing in the coming years,
there's also a high possibility that it will be a flat-line after that. This
simply means that after the supply has increased over the next couple of years,
the team of developers in charge of the cryptocurrency will ensure that the
number of coins remain constant.
Ether Application- Ethereum is considered to be better than Bitcoin simply because
it allows the use of smart contracts. Ether also allows developers to build
apps on their blockchain. The more decentralized apps built on Ether's blockchain,
the more appreciative the coin becomes. Investing Haven's research team claims
that in five to seven years, Ether is expected to have a twenty to thirty fold
increase on the amount of decentralized apps we have around now. If this should
happen, Ethereum will become incredibly valuable.
The Demand of Ether- Ether will continue to be in demand. This logic is based on two
things; the demand will be based on the coin being an investment plan that
continues to appreciate or as a currency that retains its functionality due to
the fact that it's on a blockchain with several other apps. The functionality
of Ether is bound to remain relevant due to the smart contract it offers. Also,
as more apps are being built on the Ethereum blockchain, there will be more support
for the functionality of the currency.
2.ETHEREUM MAY SURPASS BITCOIN
Market analysts are of the opinion that Ethereum might overtake
Bitcoin in the race of price and kingship. This basically means that, if you
invest the same amount of dollars in Ether and BTC, ETH is bound to yield more
ROI than Bitcoin. This might be hard to believe right now, especially with the
price of bitcoin is five times that of ETH, but nonetheless, Olaf Carlson-Wee,
the CEO of Polychain Capital believes that the entire market capitalization of
Ether will surpass that of BTC very soon.
There are a lot of factors supporting Olaf's motion. Take a look
at the last four months for instance; a lot of investors have placed major
focus on ETH rather than BTC. As a matter of fact, BTC has lost almost half of
its market share to ETH in the past four months.
To make it clearer, four months ago, before Ethereum became really
popular, ninety percent of cryptocurrency investments went to Bitcoin's table.
It's not a coincidence now that this number has dropped to forty five percent
and Ether's shared has increased in four fold, making its investment runs reach
thirty percent.
Another factor indicating that Ether might surpass Bitcoin is
those who are backing both currencies. While Bitcoin is famous for its payment
technology, making governments like China and Japan hop on it, Ethereum's
technology is a smart contract technology that's very useful in the real world.
This technology has made Ether get the backings of a new organization known as
Enterprise Ethereum Alliance (EEA), an organization that has firms like Microsoft
and JP Morgan as its members. In fact, the EEA consists of over eighty six
firms and every one of them is supporting Ethereum.
SUMMARY
The future is looking good for Ethereum. The cryptocurrency might
not be as strong as BTC is now but within the next few years, there’s a
tendency that ETH will be the new king of cryptocurrencies.
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