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May 18, 2016, 03:46:28 PM |
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This is why e-journalism is a joke.
ETH is based on decentralized computing. The token itself is used to power these computations. ETH are consumed by operations, which means at some point there will have to be more created/released if computation on the platform increases at all. This puts it at odds for being a "store of value", because frankly, it isn't DESIGNED TO BE ONE. I wish these journalists would get it right, because it is a rather important distinction.
There are other factors that will weigh on ETH price, such as competition for compute-per-cycle from conventional technologies. While ETH likes to think that everyone wants a decentralized hammer for their computing problems, the honest truth is there are piles of nearly-free hammers lying around in the form of open source code and diving prices in cloud computing platforms.
But that doesn't stop the endless Ethereum articles, does it? Its almost like someone knows that the underlying narrative is bullshit, but they need to pump it as an investment -- not as a computing vehicle.
That should give you pause, at the very least. ETH was never designed to be an investment, period.
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