Is Ethereum in a Bubble?

As of today, end of October 2017, Ethereum is no way in a bubble for me.

ETH price has had a price surge that lasted from $18 April 2017 to almost $370 in June 2017.

At that time, everyone was talking that Ethereum is on its way to surpass Bitcoin.

The fundamental basis for this argument was (this basis is still valid today):

  • Ethereum is more rapid and flexible than Bitcoin’s blockchain;
  • Ethereum allows smart contracts – a type of online contracts where you can predetermine certain conditions that would trigger certain actions. In short, smart contracts are great for negotiations without third parties and can allow multiple functions.
  • Ethereum allowed the creation of different new tokens as layers based on its blockchain functionality, which was not true about Bitcoin. Most of the ICOs at that time (and in the present) were offering tokens based on Ethereum.
  • Ethereum allows different updates that makes it adaptable with the future trends.

So, as you can see, Ethereum has great value and its blockchain is more advanced that Bitcoin’s one.

But why is ETH so low then? We actually should not speak about a bubble now, but about an undervalued product.

Well, it all started in June, when a short crash happened on the GDAX exchange. Ethereum price fell from $370 to almost 10 cents for a few minutes. The main reason behind that was a huge sell order that nourished the bearish sentiment and triggered the stop losses of traders. Now there is a fear among traders and ETH quotation never exceeded $400.

Meanwhile, Bitcoin got too much attention from media and its price jumped to over $6000 in late October.

Ethereum will have its word after more people get introduced to the cryptocurrency market and understand how things work.

So, Ethereum is not in a bubble – it has great value and it has the potential to grow since the demand for it will maintain for the next coming years.



Leave Your Comment

Leave a Reply

Win Free Points!!
Kindly get back to your previous orientation view... your wheel is rolling there...

You have won free points
Krown Fortune Wheel Special Offer Unlocked!
You have a chance to win free Points. Are you feeling lucky? Give it a spin.
* You can spin the wheel only once per day.
* You can spin again any time by paying 50 points
* Once you pay for spin you are not able to refund it.
You must login to play mycred fortune wheel