The digital currency (or crypto currency) today is at the peak of its popularity. This is unsurprising, as it has many advantages. For example, decentralization or anonymity when making transactions. It is not afraid of inflation. This means that many investors and ordinary users are more and more interested in the extraction process and the dynamics of its growth.
The first crypto currency that appeared on the network was Bitcoin. For a long time, its authority was unshakable. However, over the past few years, its competitors have strongly pushed its authority, So, when in the summer of 2015 the official launch of the Ethereum network took place, specialists realized that this crypto currency will quickly overtake its “big brother”.
Increase in popularity of Ethereum
At the moment, it can be argued that it has happened – Ethereum has already reached the advanced world of blockchain technologies. And despite the fact that other altcoins appeared in the last 2-3 years, it is Ethereum that remains for the majority the most attractive crypto currency. Those who were lucky enough to get at least a small amount of ETH at the start can definitely be happy with this today. After 2,5 years the price of Ethereum has grown by about 2800%!
On the wave of popularity of this crypto currency, many people have asked themselves how high can Ethereum go. Some believe that given the current performance, further growth is unlikely. However, this is debatable. Why? At least because Ethereum is trusted by large companies. Such grandees as Microsoft and IBM were the first to choose this crypto currency to make direct investments.
The growth of the popularity of Ethereum can also be seen through statistics. Google Trends data confirm a significant increase in interest growth since the beginning of 2016.
However (and this is understandable) the demand for this crypto currency varies considerably depending on the geographic location of users. At the moment, the most active platform is used in such countries as
And because the search interest directly affects the cost of ETH (and potential investors will still continue to search for information in the search engines), it is obvious that its rate will only increase.
Dynamics of the cost of Ethereum
Officially, Ethereum’s “birthday” is considered to be July 30, 2015. But the creator of this platform, Vitalik Buterin, has been working on his project since 2013. Despite the fact that the young man created a seemingly flawless platform from the point of view of reliability, the ETH course could not grow steadily. It happened in the middle of 2016, when a hacker attack happened on the DAO project, based on Ethereum. Attackers managed to find a vulnerable place in one of the parts of the DAO code. As a result, in just a few hours, hackers “stole” funds equivalent to more than $50,000,000.
Of course, this was the reason for why is Ethereum going down. In just a couple of hours the price had dropped almost threefold! There are no more “failures” in the history of this crypto currency. But after the hacker attack and the ensuing fall of the Ethereum course, there was something else that directly affected the cost of ETH. It was the appearance of Ethereum Classic, a blockbuster platform that arose after the disagreement of many DAO token holders with forced hard fork. Naturally, this happened after the attack on DAO, when the system was divided into 2 separate, unrelated chains. The part of the community that accepted the new conditions and “joined” the new chain, remained in the Ethereum system. Those who refused to do this, switched to another system, calling it Ethereum Classic. How did this affect the ETH course? For a while, it declined it, but insignificantly.
How high can the price of Ethereum go by the end of 2017 or in the first half of 2018, no one can say for sure (as it has already be proven that the system is imperfect and anything can happen). However, if you exclude such interference, it is obvious that the rate will increase. According to experts, in 2018, it can reach $500.
Prospects for the development of Ethereum
Today, analysts compare the popularity of Ethereum to a forest fire – it is rapidly growing and spreading. This is shown by the growth rate of the value of ETH: this year it increased by 4000%! Many still want to invest in this crypto currency. And, paradoxically, this fact makes such an enterprise risky.
Simple users, who acquire ETH, are driven by the desire to get rich as quickly as possible. But this is not the idea of Ethereum. Do not forget that this is not a crypto currency in itself, but a platform for creating decentralized applications. And acquiring ETH for free, users seem to devalue this idea, artificially influencing this fact why is Ethereum going up?
But the thoughtless investment that can be observed now leads to the “voodoo economy” model, in which the token (in particular, the Ethereum token) is not backed up. And such a model is untenable and unpromising.
With this in mind, the recent statement of the creator Ethereum Vitalik Buterin is becoming more and more obvious and relevant. He announced that he plans to limit the emission of this crypto currency. And not with regard to Bitcoin, but otherwise – to enter a commission for the use of applications developed on the platform Ethereum. This will happen “naturally” by burning out the crypto currency and there will be a deficit of ETH, which will prevent its possible depreciation.
What are the conclusions of all this? Is it worth investing in Ethereum? How high could Ethereum go and will it increase at all? It is difficult to answer these questions unequivocally, because even the platform creator is not completely sure of this. But you can say one thing for sure – the cost of ETH will increase, though not continuously. And if the collapse of the system does happen, it is unlikely in the foreseeable future. Therefore, those wishing to make a profit should act right now. After all, the crypto currency market works around the clock 365 days a year, and at any moment everything can change.