 |
May 12, 2018, 03:31:43 AM |
|
Is Ethereum a bubble? Ethereum price speculations 2018
When you look at the growth of Ethereum, you would realize that it has been astronomical, to say the least. Ethereum is not a case when it comes to rise in cryptocurrencies. There have been a wide variety of cryptocurrencies which have increased significantly in the last 12 to 14 months. Cryptocurrencies Ethereum specifically has gone from being traded around $ 100 to being traded over $ 1200. All of this within the last 15 months. This is one of the main reasons why investors are actually fearful of investing in Ethereum. This brings us to the very important question as to whether Ethereum is actually in bubble territory.
Normally, when you’re speaking about bubble territory, the asset which is in the bubble territory does not have the proper fundamentals to match the price rise. You need to understand that Ethereum is not a for-profit company and therefore, it cannot be judged like one. On the other hand, the asset prices are also are regulated by the demand-supply equation. The demand for Ethereum is significant as more and more investors are looking to invest in it. However, rather than just looking at the demand of the asset, it is important to look into the underlying application of Ethereum.
In the longer term, only when the underlying application of Ethereum is being utilized more and more, Ethereum would increase in value as well. This is one of the main reasons why you have to look at the potential end users.
The truth is that even Fortune 500 companies are interested in what Ethereum has to offer. They have formed an enterprise Ethereum alliance in order to harvest the smart contract capability as well as the blockchain capability of Ethereum. Once proper end applications are available, you can be sure that the usage of Ethereum would increase significantly.
In addition to the application which we discussed above, Ethereum platform is also being used by the companies in order to launch their ICO’s as well. This is another application which is gaining more and more momentum.
Prediction of Ethereum for 2018:
The prediction of Ethereum by this year-end is around $ 2500. It remains to be seen whether it is able to attain these levels or not.
Thus, whether you should invest in Ethereum or not would actually be dependent on the time horizon of investing. If you’re just investing for a couple of months, it might not be a good idea to invest now. On the other hand, if you’re thinking of investing for at least 4 to 5 years, you can invest at the present levels as well as the end-user applications of Ethereum are still pretty strong.
Disclosure: This article is not an investment advise.
It is not an easy question but some predictions can be done. If we think about Bitcoin, no one could imagine that it will hit the 20k dollars in one day starting from $.08. But it happened since 2009, in less than 10 years. If we think in the same way for Ethereum, it will take some time but for Ethereum it will be faster to reach some numbers. And also if we think about the background technology of Ethereum, it can make it easier to become more common.
Ethereum Based Blockchain DAPPS
But you should remember that, Ethereum is not only a coin it is also a technology far beyond our imagination. Most of the ICO’s are using Ethereum based Blockchain technology. This is also something else why Ethereum will last more.
|
