Ethereum has been capturing attention all over the world. It has also captured the attention of mainstream investors as well who are trying to figure out what is the upside which is remaining in Ethereum. After touching a high of around $ 1200, it has fallen to around $ 950. However, when you take into account the last 12 to 18 months, you would realize that it has increased in value significantly.
The annual Davos economic forum also discussed Ethereum is a significant cryptocurrency. The cryptocurrency enthusiasts are actually trying to find out whether the attention which it is receiving at the economic forum would actually be able to increase the price of Ethereum. As compared to other cryptocurrencies, Ethereum is actually much more versatile and can be used in a wide variety of other applications.
Davos Impact On Ethereum:
Davos is gathering of some of the wealthiest people in the world. Therefore, discussions are going on about Ethereum at this forum, it will surely mean that more and more companies can think about investing in Ethereum which has the potential to increase the value of Ethereum. This is one of the main reasons why investors are hoping that it would rub off on the Ethereum price.
At the same point in time, the views are not entirely positive. According to the CEO of the International monetary fund, Christine Lagarde, owing to the lack of anonymity as well as lack of transparency, cryptocurrencies usage in the mainstream economy is not actually advised.
On the other hand, there have been quite a few private meetings as well pertaining to this cryptocurrency. Since it is a gathering of the wealthiest people in the world, you can be sure that even if a few companies make up their mind to invest in this cryptocurrency, the value of this cryptocurrency would increase significantly.
Investors, however, are trying to figure out if there would be a shorter term positive impact. Most likely, there would not be any shorter term positive impact. This is the reason that it has stayed stable in spite of this news coming out as well. In the future, however, if it is able to gather significant investors, it would be easier for the cryptocurrency to breach the earlier highs as well. It is currently the 2nd most valued cryptocurrency and can increase the value of Ethereum as well.
With that being said, it is up to the time or as the investor to decide whether now is the right time to invest in Ethereum or whether one should wait for it to fall further and thereafter think about investing in Ethereum.
Ethereum vs Bitcoin: Does Ethereum have the potential to overtake Bitcoin?
In the last few months, Bitcoin has lost value consistently. However, it has risen more than 1000% in the last 12 to 16 months. On the other hand, when you’re looking at Ethereum, it is just down 20% or so from its peak. It has also risen more than 1000% in the last 14 to 16 months. This is one of the reasons why investors are actually looking to invest in Ethereum as well. Many investors are trying to find out whether Ethereum can actually overtake Bitcoin.
Davos conference was one of the prime venues where the cryptocurrency discussion actually took place. Most of the larger company heads are intrigued about the sudden rise of cryptocurrencies. This is one of the main reasons why it was the topic of discussion there.
Many opposing voices:
It is not like people are already considering Ethereum to be a worthy successor of Bitcoin. There are many opposing voices as well. The problem is that Bitcoin is the pioneer in the cryptocurrency market. On the other hand, when you’re comparing the cryptocurrencies on the basis of application, you would realize that Ethereum has a much stronger application. This is one of the main reasons why investors are thinking that Ethereum would be able to increase in value.
The truth is that Ethereum provides a decentralized processing platform. This ensures that more and more people are able to earn Ethereum just by lending the processing power. Also, Ethereum mining is currently profitable as well. This is actually increasing the attention to Ethereum.
Ethereum has in the last few months also received a lot of media hype as well. This has brought the attention of mainstream investors towards Ethereum. This is one of the main reasons why it has lost little as compared to some of the other cryptocurrencies like Bitcoin which has lost approximately 40% from the peak.
The truth about the relationship between Ethereum as well as Bitcoin is complicated to say the least. The reason for that is Ethereum is often considered as a 2nd cryptocurrency. If indeed, the Bitcoin adoption does not increase in the off-line world, there is definitely an opportunity for Ethereum to become the most valued cryptocurrency. For now, however, the trend in the cryptocurrency market is not that strong and that is why most of the cryptocurrencies are actually down by more than 20% from their peak. In the future, Ethereum does hold a lot of potential.