Ibtimes has published an article about the future of Ethereum. The Ethereum ecosystem is faring slightly better than bitcoin in terms of price. According to OnChainFX Ether prices grew 10,298 percent since this time last year. Organizations such as ConsenSys and the Enterprise Ethereum Alliance drove institutional engagement while the initial coin offerings fundraising trend created hundreds of new Ethereum-based tokens.
Regulators worldwide are cracking down on questionable ICOs, which could impact ether itself. “There is definitely demand for Ethereum when there are ICOs being launched,” Matthew Gertler, senior analyst at Digital Asset Research, told International Business Times. “But we don’t have numbers to quantify how much of these [ether tokens] went into ICO projects to know if that is really going to have any effect. Negative publicity is generally negative for the market.”
Ethereum’s ecosystem exhibited better variance
On the other hand, Ethereum creator Vitalik Buterin has an ambitious roadmap for technical improvements this year. Plus, an academic study out of Cornell University argued there even more diverse Ethereum network nodes than there are comparable bitcoin nodes. The study also asserted Ethereum’s ecosystem exhibited better variance when it comes to miners, making it easier for small miners to contribute. All things considered, the Ethereum community is diversifying rapidly. This could boost the network’s overall security.
Much like the bitcoin network, relatively high transaction fees and network congestion hinder daily usage. Some experts speculate that Ethereum futures contracts, an unprecedented investment product with relation to this cryptocurrency, could be in the pipeline for the future.
If you think the value is higher than the current price
“Bitcoin and Ethereum broadly trade in similar ways. One big difference, I would say, is you now have the bitcoin futures market,” Wall Street veteran and cryptocurrency investor Jill Carlson told IBT. “It’s always a question of the value of something versus the price of something. If you think the value is higher than the current price, that’s a great thing to go in and buy. If you think the value is lower than the current price, then you might want to short it…Personally, I’m not going to short bitcoin anytime soon.”
Price of ether will rise this month
Even if most experts predict the price of ether will rise this month, anything can happen in the world of cryptocurrency. Quartz reported hackers stole $400 million worth of ICO tokens so far, the majority of which were Ethereum-based. Many Ethereum wallets, such as Parity, appear to have serious vulnerabilities. Regulation, lawsuits and costly cyber attacks could all lead to unpredictable oscillation.
Expect stability only after 10 years – Kristjan Dekleva (Hedge)
The Swiss-based financial expert will have us brace up for a decade of turbulence before any hope for a stable bitcoin. This he suggests will coincide with a general acceptance of Bitcoin even in hard-stance China. This though, not as a fiat replacement but a viable alternative.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“In my opinion, it will be at least 10 years before we see stability”. – Kristjan Dekleva (Hedge)[/perfectpullquote]
The finance expert at cryptocurrency project Hedge sees Bitcoin investments as all-too-similar to the DotCom bubble of the 90s.
Bitcoin to shrink to $100 – Kenneth Rogoff (Harvard Prof & ex IMF chief)
Known for his disparaging remarks against Bitcoin, a former chief economist at the International Monetary Fund’s (IMF) Kenneth Rogoff has poured icy water on hopes of Bitcoin making it to the moon.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“I think Bitcoin will be worth a tiny fraction of what it is now if we’re headed out 10 years from now…I would see $100 as being a lot more likely than $100,000.” – Kenneth Rogoff[/perfectpullquote]
Rogoff’s prediction is based on his long-held belief that governments will rise against anonymous virtual currencies like Bitcoin. Government regulations, according to Rogoff, will pop the Bitcoin bubble but a Bitcoin pioneer on Wall Street thinks along very different lines.
Bitcoin is the future; Fiat is Past – (Tim Draper, Venture Capitalist)
In 2014 with bitcoin at only $413, popular VC, Tim Draper predicted bitcoin to reach $10,000 in three years. This was fulfilled a month earlier than he predicated earning him a reputation among crypto fans. He said he expected the Bitcoin to continue its growth in an interview with Bloomberg last year. Tim Draper has made successful bets with Tesla, Skype, and Twitter in the past.
Assuming this growth happens at the same pace as the 3-year journey to $10k then we’re in for six digits. Maniacal right? That’s exactly how Draper feels about Bitcoin prospects. Now onto someone who understands a lot about bitcoin’s foundation.
Bitcoin Will hit $320,000 someday – Cameron Winklevoss (co-founder, Gemini)
One of the popular Winkelvoss twins, Cameron Winklevoss recently said that he could easily see the price of BTC go up 40% someday. This year maybe? Not likely. The twin said he and his brother were taking longer outlook, 10 to 20 years.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“Bitcoin is actually fixed in supply so it’s better than scarce … it sort of equals a better gold across the board. We think regardless of the price moves in the last few weeks, it’s still a very underappreciated asset.” – Winklevoss [/perfectpullquote]
The fourth wealthiest cryptocurrency investor weighed bitcoin’s prospect against gold and came up with a resounding verdict. “We believe bitcoin disrupts gold,” He said.
Bitcoin will reach $1million – Bobby Lee (CEO BTCC Exchange)
Bobby Lee, CEO of China’s first Bitcoin exchange speaking at the London Blockchain Week went overboard with his prediction. Lee said bitcoin will surpass $1 million but unlike McAfee, he could see this happen in 20 years’ time.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“Bitcoin, I think will get to $1 million per bitcoin…Right now it’s 10,000, it will go 100,000 and then 200,000, 500,000.” – Bobby Lee[/perfectpullquote]
A good number of analysts have also had their say though very few would be drawn into actual predictions. We observed a general trend in their assessments.
Expect Price Fluctuations:
At this stage, bitcoin and cryptocurrencies will be greatly affected by speculations. Even small developments in governments, traditional will likely affect prices. Most say the fluctuations are normal and wouldn’t affect the longer term outlook.
Experts would prefer to make predictions over a longer period. It is more common to have bitcoin price predictions for 2020 or a 10 to 20-year outlook. While the current reality may suggest some gloom, it’s worth remembering that the heights achieved last year came amidst similar corrections along the way. It’s only the 1st quarter of the year.
Bitcoin will be the standard for virtual currencies.
Though bitcoin may have a limited use case, it has been tipped to remain the king of all cryptocurrencies. It’s not going to be a case of “which altcoin will overtake bitcoin” rather how they will impress with their special use cases. It is a fact that the technology behind bitcoin is less sophisticated when compared to many other projects like ethereum.
Bitcoin as a store of value
Gradually, bitcoin is being seen more as a store of value that an actual currency being compared to gold and other assets. Bitcoin was originally designed as an alternative currency to bank the unbanked. Most decision making bodies and financial experts, however, see Bitcoin more as a store of value, an asset rather than a medium of transaction.
Many Altcoins will suffer
Part of the process that will lead to general acceptance of cryptocurrencies will include a clean-up of “useless” cryptocurrencies. A good number of the 2000 coins will naturally go away as their value become worthless—some, only a fraction of cent. Brad Garlinghouse, the CEO of Ripple and Llew Claasen of Bitcoin Foundation are among those raising this alarm.
Economics of Scarcity
The limited supply of bitcoin—a fixed supply 21 million BTCs—will play a role in its price; if not now, in the future.
Outside factors will play a significant role
Many observers believe that outside factors which affect the adoption of bitcoin will ultimately dictate the price in the short-term. The creation and performance of futures markets, for instance, is expected to tilt the price either way.
There are still concerns about bitcoins used for illicit purposes
Due to the anonymity of Bitcoin transactions, it has been used to conduct illegal activities giving Bitcoin a general bad image. This image, analysts believe will affect its adoption and ultimately its prospects in the future.
Finally, Caution against risking your life savings
Crypto investments are new and super-risky. Remember ethereum founder saying that cryptos are so risky the prizes might actually drop to zero. Well, that doesn’t seem practical but the message was clear. Do not invest your life savings in bitcoin or cryptocurrencies generally. Just like John Draper noted, you still need to buy stuff in fiat. So while bitcoin will likely worth a lot more in the future, it’s advisable to invest just as much as one can afford to lose.