For the first time ever, (or after the hard fork), the price of Ether has surpassed that of Bitcoin Cash. Among all other crashes in crypto world, this is now the latest negative milestone in a few weeks for the world’s fourth-largest cryptocurrency by market capitalization.
According to data from CoinMarketCap, Ethereum traded at $86,76, while Bitcoin Cash traded at $83,07 at the time of writing.
With the crypto markets underperforming for over a year now, the questions are haunting all investors: what is happening to the market? Where to go from here? If you are one of the pride owners of Ethereum and are wondering if Ethereum price will rise again, then you should be careful and go through some of the predictions made by market experts.
Ethereum’s co-creator Steven Nerayoff has famously said that Ether’s market capitalization will reach USD 110 billion from the current USD 9,034,496,452 (at the time of writing). The reasoning behind Nerayoff’s prediction is that the amount of products being built on the Ethereum Blockchain is increasing by the day. It is also essential to know the cons and pros of Ethereum to understand where the cryptocurrency stands in the market.
deVere Group, a consulting firm, has released the prediction of Ether at USD 2,500 by the end of this year. In October, Nigel Green, founder and CEO of deVere Group, one of the world’s largest independent financial advisory organisations, which launched deVere Crypto, the pioneering cryptocurrency app earlier this year, forecasted the future of the world-changing.
He then said:
“Another one to dent Bitcoin’s market share over the next few years, would be its current main challenger Ethereum. This is because a growing number of platforms are adopting Ethereum as a means of trading; there’s an increasing use of smart contracts by Ethereum; and due to the decentralization of cloud computing.”
As per deVere, there will be a further hike in the price of Ether in the year 2019 and 2020. The reasoning behind deVere’s forecast is also the same- increased use of the open-source, public, blockchain-based distributed computing platform.
Ongoing Development in Ethereum to Transform the Payments Industry?
Polychain Capital’s CEO, Carlson-Wee, seconds Ver’s opinion of Ethereum surpassing Bitcoin. Last year, he was largely placing a bet that Ethereum, would win out; more than one-quarter of Polychain’s main fund was invested in Ethereum, according to its most recent audit.
In communications this year with investors, the firm defended its performance as better than the crypto market at large. He still thinks that the ongoing development in Ethereum will transform the payments industry to deliver new ways of storing wealth.
Investors in the fund credit a shift from assets such as Ethereum into less-liquid, more stable stakes in crypto companies internationally. That’s a less-volatile bet but one that’s harder to get out of in the case of an extended decline.
Giving an interview at the Ethereum Industry Summit conference in Hong Kong in September, Vitalik Buterin, co-founder of Ethereum, said:
“The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.”
It’s interesting though that last month, cryptocurrency entrepreneur Jeremy Rubin wrote the Tech Crunch article stipulating the price of ETH and that it is bound to plummet. Vitalik Buterin agreed to the piece wrote on Reddit, “In Ethereum as it presently exists, this is absolutely true.”
In the article, Rubin argues that Ethereum has problems with scaling and smart contract security. It is leading to the inability of outdoing the competitors and all of this will inevitably lead to the collapse of Ethereum (ETH) by “economic abstraction.”
The phrase ‘economic abstraction’ is used for describing the transaction payment or smart fee (gas) in some token that’s not Ethereum Network’s native token. It means that instead of paying gas in ETH, a smart contract owner would pay in the token that’s native to their contract that’s likely based on ERC-20 standard. According to Rubin’s argument, if all owners of smart contract pay in ERC-20 tokens instead of ETH, it would result in decreasing the value of the asset or make it valueless.
Vitalik even revealed the two proposals. The first one being:
“Instead of paying for Gas in ETH, we could make every BuzzwordCoin transaction deposit a small amount of BuzzwordCoin directly to the block’s miner’s address to pay for the contract’s execution. Paying for Gas in a non-ETH asset is sometimes referred to as economic abstraction in the Ethereum community.”
Another one is:
“…average gas usage is targeted to 50% of a (2x higher than today) gas limit, using a self-adjusting minimum transaction fee to do the targeting, where the minimum fee gets burned.” The fee will be charged to the block proposer and the block proposer can charge fees in spankchain tokens or other ERC20. However, it will still be the block proposer’s responsible for coming up with the “ETH to pay the minfee.”
Sell-Off on Cryptocurrency Market More than $80 billion
One month has officially passed since the Bitcoin Cash blockchain underwent a hard fork on November 15, resulting in the creation of two distinct networks.
They’re now commonly referred to as Bitcoin Cash ABC and Bitcoin SV. Yet in the weeks that followed the mid-November fracture, there is still no favorite in terms of overall price.
Since the fork, both BCHABC and BSV have been trading on public cryptocurrency exchanges like Binance and Coinbase, but after 30 days of wild volatility and drastic swings in hash power, their prices stand less than $10 apart.
Since the fork, the broader cryptocurrency market has witnessed a significant sell-off of more than $80 billion in terms of total capitalization. As a result, the two forks depreciated greatly in price.
At the time of writing, BCHABC (currently trading under the BCH ticker on many exchanges) is valued at just $83.07, while BSV is $76.42, according to CoinMarketCap, so it’s clear the public has yet to pick an undisputed favorite.