Why did Ethereum soar in the past 18 years
money, as a measure of transaction value, does not necessarily have value in itself, it can only be used as an intermediate unit of measurement. It's just like China has only RMB as legal tender, that is to say, government guarantee has value. For example, in those war-torn areas, ten jin currency may not buy an egg, which is the reason
back to digital currency, digital currency, until now, no country has recognized it as the currency in circulation of its own country. It seems that last year or the year before last, our country also banned some. In this case, digital currency can only be sold at a price higher than your purchase price, so that you can make money. But digital currency itself does not have any value. Unlike stocks, it is your ownership of listed companies. So if you can't find someone to buy digital currency, it's worthless
the Ponzi scheme in history, the Dutch tulip, when it was the most expensive, a tulip was worth buying a house. When no one bought it, all the tulips rotted. In addition, they couldn't get a potato. Therefore, Buffett said that digital money is a bubble, which is a hoax.
in addition, there is a saying in the stock market that when all the ladies in the vegetable market begin to discuss the stock market, it is the time when the stock market reaches its peak. In my opinion, this also applies to digital currency. When many people are discussing how to make money and how to make a lot of money, the risk has accumulated to a great extent. Most of the time, when the stock begins to fall, many people are still in the previous inertial thinking, thinking that it will rebound soon, and then it will get lower and lower, and they are more reluctant to sell it. This is why many people hold a high position on it
I'm not sure whether it is the highest point of digital currency, but I think that digital currency, which can be issued by anyone, has no purchase value and can only be sold to others. I think it's a fraud.
although the price of Ethereum continues to decline, there are still many investment opportunities. Nowadays, many people invest in Ethereum through virtual currency trading in the realm Kingdom, which is not affected by the rise and fall of prices, but also can invest less money in the shortest time to obtain more income.
however, bitcoin is not the only cryptocurrency with rising value. The value of another cryptocurrency called Ethereum has been increasing since January 2017. From $8.24 to $203. Up 2367%
investors are worried that in the past few years, cryptocurrencies have gained the favor of many investors who are looking for other investment methods than traditional ones. Although most investors still invest their money in traditional financial markets, such as the stock market and foreign exchange market, many of these investors have begun to worry about the economic climate of the world economy
recent events have made us aware of the instability of traditional financial markets such as the stock market and foreign exchange market. Many investors have been looking for other ways to invest their money
with the creation and popularization of cryptocurrency and its rapidly rising value, many investors, especially those from Asia, have joined the trend of bitcoin and cryptocurrency
advantages of Ethereum
although many people are more familiar with it, Ethereum has also gained a fair share of the market with its own value. However, there are key differences between the blockchains used by Ethereum and bitcoin
the difference between the two systems is that Ethereum's data processing speed is faster than that of bitcoin, because once agreed, Ethereum's system will automatically apply to the terms and conditions in the contract
although many people may think that Ethereum may be inferior to bitcoin because its value is lower than bitcoin, this is a good thing for investors who are looking for investment channels other than bitcoin. A lower price may attract more investors because it has more room for growth. The only drawback is that Ethereum is not as established as bitcoin. In view of this, bitcoin is more secure than Ethereum<
not as volatile as before
since bitcoin was founded in 2009, cryptocurrencies have made great achievements, and they have continued to grow. In fact, the value of legal cryptocurrency has risen a lot since then
although cryptocurrencies have performed very well this year, analysts expect that when the economic situation is good, investors will leave cryptocurrencies and return to traditional investment media. When this happens, the volatility of cryptocurrency will decrease because of the decrease of demand
of course, we will still see the growth of cryptocurrency in the next few years, which will help the instry remain strong. When that happens, it's a good idea for investors to hold cryptocurrencies for future growth.
Ethereum is likely to rise to 10000 in 2021
institutional investors and big capital are increasingly interested in cryptocurrency. The attention of all whales, and the attention of all the public, is focused on bitcoin. Since the global health and safety incident triggered the market crash in March 2020, the growth of eth has reached 1200%
while BTC only increased by 700%. Of course, in the context of bitcoin's record high price of 40000, Ethereum's rise to $1400 does not seem so impressive. In addition, the market value of eth is five times the trading volume of BTC market
extended information:
the increase of Ethereum is as follows:
the transaction volume recorded on Ethereum blockchain exceeds US $1 trillion. These figures exceed the transaction volume of payment giants such as PayPal, which is used by more than 350 million users and whose average transaction volume is generally less than $200 billion per quarter
each transaction will generate network fees paid by eth. Moreover, as the growth rate of the network is still very high, we can confidently expect the "bull market" trend of eth to continue. In any case, interest in cryptocurrency is growing, as are the number of active wallets, the number of transactions on the Internet, and the average size of transactions
the reaction of cryptocurrency to the Fed's interest rate increase shows that cryptocurrency is regarded as a safe haven investment against the background of the continuous dilution of the value of major legal currencies. That's why demand for bitcoin has risen in countries where fiat currencies have fallen, such as India and Venezuela
however, if the Federal Reserve continues to raise interest rates, the market demand for cryptocurrency may decrease. The reason is that when the Fed stops printing new money, there will be less new money flowing into assets such as real estate, stocks and cryptocurrency. As a result, investor demand for anti inflation assets will decline.
I think the first reason why Ethereum has been setting new records is that it has a lot of capital
the second reason is that many ordinary people have paid attention to virtual currency . These ordinary people have strong purchasing power, and they may have been speculators in stocks or funds before. When they find that the virtual currency is rising well, they will bring a lot of money into the market. The admission of these ordinary people will increase more capital admission, because in the view of capital, these ordinary people are a crop of leeks
the third reason is e to the soaring price of bitcoin, bitcoin is now rising very rapidly, from $20000 a bitcoin in 2020 to $60000 a bitcoin now. It's terrible. For a lot of capital, they can't speculate on bitcoin. Because bitcoin's plate is too big, they have to go back and speculate on Ethereum
first, a large amount of capital has entered the market
at present, the global economy is not very good, there are not many things that can be invested, and the global currencies are devaluing and inflating for a lot of capital, their money will depreciate one day if they hold it in their hands. They need to invest their money. At this time, they find that the virtual currency can keep the value and will not inflate. At this time, there will be a lot of capital, with a lot of money to buy Ethereum. When a lot of people go to buy Ethereum, it is normal for Ethereum prices to rise
I think the main reason for the price increase of hundreds of counterfeit currencies is that virtual currencies are very hot now. Take bitcoin and Ethereum for example, they have all risen several times or even dozens of times and many people who don't make money in bitcoin or Ethereum will focus on some counterfeit currencies, because the price of these counterfeit currencies is very low and may rise to such a high price as Ethereum in the future. They are all predicting investment. When there is a lot of money to buy Shanzhai coin, of course, the price of Shanzhai coin will be speculation
virtual currency is the bubble
. I think the hot money of virtual currency is a bubble. Until a certain time, when the bubble breaks, many people will lose their blood. Because most people are ordinary people, they don't have too much capital, and these retail investors have little control over the market. And this kind of counterfeit currency is controlled by big capital, they can decide the rise and fall of counterfeit currency, and virtual currency has no market supervision, so investment is very dangerous
conclusion: in fact, every once in a while, this kind of virtual currency will go through a period of sharp rise, and then go into a low period of sharp fall, reaping some people's investment. In fact, these are all capitalist games, and those who lose money in the virtual money market are ordinary people, and those who earn money are capital. So many people call these ordinary investors leeks