The Return Of The Crypto
Bitcoin (BTC) became an overnight sensation last year when the price of one bitcoin (BTC) reached an all-time high of $19,783.06 in December 2017, and over the last 24 hours, cryptocurrencies have channeled the same energy. Bitcoin added 2%, trading above $6,600 for the first time this year, with bitcoin cash, the fork of bitcoin created last year, adding 13% as well. Analysts attribute this growth to Bitcoin bull and CEO of Overstock, Patrick Byrne’s fandom over cryptocurrency. Back in 2014, Overstock (OSTK), Amazon’s (AMZN) key competitor in domestic markets, starting accepting bitcoin (BTC) as a payment method for their site. Byrne has said, for some time now, that society is on the brink of a crypto revolution in response to the collapse of our current financial framework.
“People turn to it where they collapse, like Venezuela or Syria, something like that…When people start getting into it is when their own financial systems collapse. So yes, given that I think the entire modern financial system is a big Keynesian, magic money tree Ponzi scheme, I do expect that the day will come when people turn to crypto.”
-Patrick Byrne, Chief Executive Officer, Overstock
Humoring Byrne’s foretelling of the death of current financial systems is still a hypothesis until proven factual. In the interim, investors in the crypto space are gearing up for the potential revolution detailed in Byrne’s prediction by ramping up efforts to mine cryptocurrencies, most notably Ethereum (ETH).
Similarly to Bitcoin (BTC), Ethereum (ETH) is a public blockchain network. However, whereas bitcoin serves the purpose of supporting a peer to peer electronic cash system, the Ethereum (ETH) blockchain was designed to run the programming code of any decentralized application. Instead of mining for bitcoin, Ethereum (ETH) miners earn Ether, a crypto-token used to access the open source network. Amid positive trends in the cryptocurrency market, Ethereum has gained 3.7% in the last 24 hours, indicating to investors that now may be the right time to buy ethereum (ETH).
Ethereum is on fire in the crypto market, and the heat will potentially rise faster than Usain Bolt versus a local 5th-grade track team. Investors in the crypto space are witnessing a coin that has the potential to triple in value this years according to Ethereum co-creator Steven Nerayoff. Businesses across a myriad of sectors are recognizing the value ethereum’s (ETH) platform offers. Nerayoff attributes the success of his coin to its programmed ability to process transactions at a faster rate than bitcoin (BTC).
“What you’re seeing with ethereum (ETH) is a exponential increase in the number of project — there are billions of dollars being poured into the ecosystem right now — maybe 10 times more projects this year than last year, which could easily lead to a doubling, probably tripling in price by the end of the year.”
-Steven Nerayoff, Co-Creator, Ethereum
Ethereum is currently trading at $216.30 per coin after a miraculous upswing from the dip below $200 in mid-October. The coin’s resistance-breaking performance last Sunday indicates the crypto market is once again highly volatile and ready for a close-up, Mr. DeMille. Investors interested in buying ethereum (ETH) may rest easier knowing that the coin has remained clear above the $200 resistance level since Sunday.
Based on market cap, ethereum is ranked second among cryptocurrencies which means that investors looking for profitable opportunities are analyzing cryptocurrency price predictions to determine if they should buy ethereum. Ethereum’s (ETH) “smart contracts” function of their platform has enticed corporations to invest in the platform, thus increasing the price of the coin itself. Given the coin’s practical applications for businesses and its underlying usage, crypto analysts believe ethereum may rise above other coins.
“People are actually using it for currency, as well. Lower transactional costs are increasing the usage of the entire network, and that’s increasing the network effects of it. There are more suers, more projects being built on there and more programmers.”
-Steven Nerayoff, Co-Creator, Ethereum
Investors looking to get involved in buying ethereum, or cryptocurrencies in general, need to consider several factors. First of all, you need to consider the coin’s usability as well as its application. This base-level understanding is crucial to determining and predicting the appreciation value of coins in the crypto market. In the case of those looking to buy ethereum, investors should know that the coin largely differs from other currencies in the space because of its potential use-cases.
Ethereum’s (ETH) ability to separate itself from the pack, in terms of usability, enables the coin to offer conceivable gains in the near future.