HOME CRYPTO ETHEREUM ETHEREUM: REASONS FOR THE RAPID RISE IN PRICES
The Ethereum price has risen by more than 500% since the beginning of the year. Here are some possible reasons for the rapid rise:
What are the reasons for the Bitcoin secret and the Ethereum price?
Ethereum and the Bitcoin secret, the crypto token of the Ethereum platform, has gained enormous popularity in the digital currency industry in recent weeks. Not least because the value of the digital currency and the Bitcoin secret has increased by more than 500% since January. In January, an ETH was worth just 0.00212 BTC. Mur 1.5 months later, the value was already 0.01101 BTC. Highest value to date: 0.0177 BTC.
Tutorial: Setting up Ethereum Wallet and receiving & managing Ethereum Coins
Investing in the future
Ethereum is one of the really valuable platforms. Many industries are currently moving in the direction of blockchain technology. Here Ethereum is very well positioned with applications such as Smart Contracts and process automation. Ethereum is perfect for such applications. With the increasing number of applications on the Ethereum platform, the demand for Ethereum will increase and so will the price.
The demand determines the price
Even though a large part of the Ethereum investment is based on the future potential of the token, others simply follow the trend. The growing demand for certain digital currencies serves as an indicator of the potential of the technology (even if it proves to be wrong). No matter why people invest in Ethereum, it drives up demand.
Faltering confidence in Bitcoin
It is rumored that the ongoing Bitcoin Blocksize debate also contributes to the Ethereum upswing. Although difficult to prove, it currently appears that the statement contains at least a spark of truth. In just 24 hours, Ethereum worth 60,000 BTC has been traded over the past few weeks. On social networks, hitherto unknown people send n´Nachrichten to people interested in Bitcoin and say Ethereum is a good alternative to Bitcoin.
This statement may be correct against the background of the investment, technologically and against the background of the goals, but both technologies pursue completely wrong. Both technologies pursue two completely different goals.
Ethereum has received very positive press in recent months and weeks. In addition, many companies and organisations have announced their support for the platform.
More importantly, Ethereum is entering a new phase. The platform will probably release a new version soon. Homestead will then replace the Frontier version. This is an important step for Ethereum as the Homestead version will be much more stable than the previous beta version.
Also the availability of Etehreum Coins (ETH) will probably increase strongly. Many platforms for trading digital currencies have already announced an integration. This will increase ETH/BTC and ETH/Altcoin trading.
Augur, the Ethereum prediction platform, will also be launched soon, as will a large number of startups and companies that want to provide smart contract solutions.
Is the growth sustainable?
On 12 February, Ethereum reached a high of 0.0177 BTC and corrected shortly thereafter with a small price drop. Even if the share price may calm down a little or even fall further, it is very likely that we will see new highs in the future and the share price will continue to gain stability. So maybe we can’t talk about sustainable growth in the short term, but in the long run we can in view of market support.