Blog And Thoughts By Bob Pattni, Crypto-Guide
When thinking about Bitcoin and what it could achieve in terms of value this year, it’s impossible to write this article without also considering Bitcoin and the effect that’s had on Crypto in general.
Bitcoin, and specifically the publicity and media attention surrounding Bitcoin over the last 2 years, has been a massive influence on the Crypto market place. Now most people are aware of its existence as a ‘real’ entity and that it has a genuinely high value – some of that value has of course been obtained by its high standing in public consciousness, making it the very definition of a self-fulfilling prophecy.
Ethereum is every Crypto-Guides pick for the only other currency out there that could eventually reach Bitcoin’s value. Having said this, you need to appreciate that it will take time for Ethereum to, well, appreciate in value itself – some predictions have Bitcoin as high as US$25,000.00 per coin by December 2018, and Ethereum is not predicted to be anywhere near that yet.
Most predictions agree that one of the big factors influencing Ethereum is its use of Blockchain technology. Ethereum uses an open-source distributed blockchain. It was the first Crypto to incorporate smart contract functionality (via a token now known as Ether, and now a separate entity to the main currency of Ethereum). Ethereum was developed and created by Vitalik Buterin and launched using a crowdsale in 2014. This is generally regarded as having been the first Cryptocurrency ICO (Initial Coin Offering) even though this term wasn’t in use at the time and has been ‘coined’ (forgive the obvious pun!). Since its launch, Ethereum has grown to become the second largest blockchain after Bitcoin in terms of market share.
Initial coin offering (ICO) is an unregulated method of raising funds, usually for a new Cryptocurrency venture. The vast majority of new ICOs are built on the Ethereum platform, further solidifying Ethereum’s place in the Crypto world. A high number of creative projects leads directly to a higher demand for Ethereum, which investors usually need in order to participate in ICOs. In January 2018 alone, more than $1.3 billion was collected in ICOs.
Currently, most Cryptocurrencies utilize a Proof-of-Work concept. In the process of transaction validation, huge amounts of electricity are spent, since miners have to solve complex cryptographic riddles in order to mine a new block. Proof-of-stake is a promising alternative and aims to make the whole Cryptocurrency industry “greener”. The idea is to make the entire process of mining virtual, thereby drastically cutting the electricity costs. Switching to a pure Proof-of-Stake method is likely to grant Ethereum advantage over other Cryptocurrencies and further solidify its place at the heart of Crypto world.
There has been a slump in prices of Crypto lately, and it’s been caused by news that Twitter is joining Facebook and Google by banning Cryptocurrency advertising.
The ban will cover advertising of initial coin offerings (ICOs) – Crowdfunding used to raise cash by creating new coins, token sales and crypto-wallet services. The policy will also stop crypto-exchanges from advertising, with limited exceptions.
However, Ethereum continues to rise and continues to be a sound investment. Partly because of its innovative blockchain technology, and partly because of the rise in public consciousness caused by the massive and continued media obsession with the Crypto world. So long as these trends continue, we’ll continue to see steady price rises in Ethereum reflective of the steady rises in public consciousness and confidence in what is, after all, still an emerging new technology.