Connect with us

Blogs

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

Published

on

ETH Image
READ LATER - DOWNLOAD THIS POST AS PDF

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.

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

Published

on

Bitcoin crash
READ LATER - DOWNLOAD THIS POST AS PDF

The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

Continue Reading

Altcoins

Top 3 Coins to Buy Before They Go Big

Published

on

coins
READ LATER - DOWNLOAD THIS POST AS PDF

Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

Continue Reading

Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

Published

on

crypto credit cards
READ LATER - DOWNLOAD THIS POST AS PDF

It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

Continue Reading

Elite