There’s a few fundamental reasons why Ether price will increase in the next few months. It’s important to understand those forces so I decided to put in this post the reasons I believe will make Ethereum price soar to new highs.
1. The Ultimate Bitcoin Hedge
The last bull run of Ethereum in February last year was in the midst of the scaling debate. The blockspace was totally filled up due to Bitcoin high adoption. The debates and uncertainty in the Bitcoin community surrounding the future path that Bitcoin should take was one of the main factor in the increase of price of Ether.
A lot of people were betting on Ethereum as an hedge to Bitcoin. For those who did, it paid off tremendously.
Today we are seeing a lot of uncertainty again in investors mind concerning the controversial Segwit2x fork in Bitcoin scheduled for November. The current core developer won’t be supporting this fork and will keep working on the original Bitcoin.
I think we will see many other forks in the future and the debate on social media concerning the different scaling solution will not end anytime soon. Ethereum will benefit from all this fear and uncertainty.
2.How Could the ICO Craze Affect Ethereum?
There is a huge trend right now on issuing new tokens through initial coin offering( ICO). Over 70% of new ICO are bing issued on the Etheruem platform. This ICO trend will only increase over time.
The American Security and Exchange commission ruled ICO an issuance of security and will be penalizing American company for participating in those ICO.
But American can still invest anonymously into any ICO using the anonymity that Bitcoin offers. The SEC cannot affect the cryptocurrency ecosystem much because it has been created specifically to curb governmental rules.
Millions of dollars are pouring into ICO right now and most of this money goes into project on the Ethereum platform. This trend will only increase over time and Ether value will raise just like a boat on a rising tide.
3. Centralized Governance, Good or Bad?
Bitcoin was first centralized when Satoshi Nakamoto was at the rein of the project. Decision where made quickly and there was no arguing on which direction it should go.
Decentralized decision making has been a huge bottle neck for Bitcoin lately because it’s really hard to come to a consensus on hard questions.
Ethereum is not suffering from this problem because of its founder, Vitalik Buterin. He is in charge of the project and whatever decision he makes, the whole community usually follow him.
This is why every time decentralized decision making slowdown the improvement of Bitcoin, Ethereum tends to appreciate in value.
4. Where is the Community?
Ethereum would survive a bear market like Bitcoin saw in 2014-2016 because of its Community.
We’ve seen it in the past, a trendy cryptocurrency goes up in price and then lose all its value and is never been heard of after. I literally can predict this fate for many hype cryptocurrency today, but Ethereum would survive a long winter.
Ethereum has the second largest one just behind Bitcoin and people using the platform are not all speculator. They are developer, entrepreneur, creator and they would keep on using it no matter what the price of an Ether is.
Protecting my downside on an investment is really important and I think Ethereum will do just fine and come back up in value after a potential bear market.
5. Yes… The New Facebook
Remember My Space? It was the most popular social network… until Facebook came around. Myspace introduced people to Social Networking Site, but Facebook perfected it.
Well Ethereum could be the next Facebook of cryptocurrencies…
Bitcoin has been losing shares of the total value of all cryptocurrencies combined and this trend will probably not stop. Over the past 3 years, Bitcoin went from 95% of total market capitalization of all cryptocurrencies to under 50% today.
On the other hand, Ethereum has been the one taking most of this lost share from Bitcoin. Ethereum now hold 20% of the total market capitalization.
With the growing interest in cryptocurrencies by the public at large, a lot more money is flowing in. I expect a winner takes all situation where a handful of cryptocurrencies would benefit the most and I believe that Ethereum will be one of the big winner.
The Future of Ethereum is Interesting
Many things are on the roadmap for Ethereum.
The first phase of the Metropolis hardfork called Byzantine on block 437,000,000 on 18 October will bring many needed features.
Byzantine will add many things including Zk-snarks, a Zcash technology into Ethereum smart contracts so what is inside a smart contract can stay anonymous.
Change to partial hybrid POW and POS 1/100 block is POS during the second phase of Metropolis called constantinople in late 2018.
The Plasma paper which has a lot of similarity with the lightning network co-authored by Joseph spoon and Vitalik Buterin was recently published and takes you on what might look like Ethereum at full scale. http://plasma.io
There’s a lot of great things ahead for Ethereum and I’ll make sure to follow them very closely.
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I will be short. I totally agree!!!
you mean long 🙂
U r absolutely in line… Great article
Hello Alex. I loved to read your article. I want to ask you, could you tell me please. What do you think about a dogecoin? I would appreciate it if you responded to this message. Thank you.
So what about bitcoin? Are they conversely related?
They are both treated as crypto, but soon a time will come when ethereum will be looked at differently. All those bans from gouverments will not apply to ether because it a protocol. When that comes ethereum will overtake the market of crypto and i think in a few years it will come.
Bitcoin – store of value (potential treat to banks and gouverments if it becomes legal currency because they cant control it) Ethereum – protocol (technology which can be used by banks and other institutions. No threat to country monetory system. Ethereum token – Something like a stock of a company)
Hope i helped
Alex whats your opinio about raiden ico? I believe raiden will push ethereum price up, but are rnd token sth worth investing in?
Damn should have bought ETH when this article was released. It’s gone up over 10%.
Don’t worry:
http://russia-insider.com/en/russias-crypto-ruble-just-changed-game/ri21271
One more reason it will grow. Pay attention to WAVES!!!!
Can you repost the link? I’m unable to view it. I bought ETH at $345 and now it’s $305 🙁 lost so much. What do you expect the price to go as high as?
I sold my bitcoin for ether two weeks ago. I lost 10% instead earning earning 25%. I read this article after i switched my coins. I look at this as a game of sport. Lets say it last till march, its not i am just losing in first quarter.
Anyways any decidion anyone makes must be his own. People can provide advice but nobody knows the future. I really hope alex is right. I changed bitcoin for 13 ether but know is almost 20ether for bitcoin.
This rise of Bitcoin is killing me, since I sold all mine for ETH. When will ETH go up!!!!?? Uffff…
Hi Alex, then witch is the future for Ethereum Classic?
nice blog and all but would like to know what your prediciton ?
500$ ? 1000$ ? 3000$ ?
You were wrong. I was wrong. It was bcash. Anyways i believe next huge bull run could be kyber network….maybe even vertcoin
Ok. Ether is going on stock market soon. When we see a date we could finally see bull run from ether. It will be soon. Weeks….
Alex i am confused with this factom stuff. I see nem became a serious competitor. I read so many articles about factom but i see the price is not that great. Their biggest news are grants 0.2 million from homeland or whatever. 200k in crypto is not big anymore. Is this thing worth investing, is it better to skip it and go to ether or some other coin you recommend?
Hi
Yes, skip Factom for now. Bitcoin and Ethereum are better bet at the moment.
NOt uploading any posts especially not now on bitcoin and crypto
dissapointing blog
everything is old and outdated from couple of months ago
nothing new here
very dissapointed
Hello Alex, What do you think about this Market? Do you think things will turn around?. Thanks!