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Here’s Why Ethereum (ETH) Isn’t Like Any Other Cryptocurrency

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Ethereum (ETH) is one of the top two cryptocurrencies on the market right now but, just as with bitcoin, it’s position at the top of the pile has far from insulated from the wider market’s decline seen over the last eight weeks or so.

With regards to ETH specifically, the token currently trades for a little over $810 apiece, down from the $1389 reached on January 15, 2018. That’s a 41% decrease from highs and it gives Ethereum a market cap right now of just shy of $79 billion.

Take a look at the mainstream news coverage of the cryptocurrency space right now and you will see the general treatment of Ethereum and its token ETH mimics that of many of the other coins in the space.

ETH Daily Chart

ETH Daily Chart

What this sort of blanket coverage overlooks, however, is that ETH is materially different from pretty much every other talk on the market right now and at least every one that is currently functional against its predefined use case.

What do we mean by this?

Well, for anybody not familiar with Ethereum, it’s a platform technology designed to serve as a protocol layer on which third parties can build decentralized applications (which are now being referred to as DApps for the main part).

As far as the actual token is concerned, ETH is used in a variety of ways but primarily to serve as what is called gas payment, which is another way of saying it’s the token that’s used to buy or rent computational power to underpin the functionality of the applications that are being built on Ethereum’s technology.

But not only that, ETHis also used as the number one exchange token for initial coin offerings (ICOs).

That is, when a company conducts an ICO, it creates a token that is ERC20 compliant, meaning simply that it can be stored in an Ethereum wallet. This allows it to form the basis of a smart contract which, when one while it receives ETH (i.e., when the wallet that serves as a collection wallet for an ICO receives funds), automatically distributes the ERC20 complaint token that’s associated with the company conducting the ICO to the wallet that initially sent the ETH.

The key point to recognize here is that ETH has a number of roles outside of those commonly associated with what we might deem a traditional cryptocurrency – value storage, transactions, etc.

It’s this role extension that resulted in Ethereum holding its value for two weeks longer than many of the major alternative coins ahead of the wider market correction in January (as mentioned above, ETH peaked on January 15, while the major altcoins peaked on January 4 and BTC peaked late December).

Additionally, it’s what limited (to a degree) the overarching decline in the market capitalization of ETH as the wider markets corrected. Many of the major coins declined between 60% to 80%, while Ethereum slipped 49% highs to lows.

It’s still not great, of course, and as far as traditional equities markets go, a cost 50% decline is a disaster, but in the cryptocurrency markets, and especially against the backdrop of the bloodbath we have seen across other points over the last few weeks, it’s a drop in the ocean.

So what comes next?

We think that ETH is on the up from here on out. Not only is the coin now subject to positive sentiment as bitcoin and its compatriots turn around, there still huge demand for it as a basis for the ever-expanding ICO market – the month that we see as central to this one holding its position as the number two coin (and perhaps outpacing bitcoin sooner or later) for the foreseeable future. 

We will be updating our subscribers as soon as we know more. For the latest on ETH, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.


Image courtesy of Ethereum.

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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