During the past several years, cryptocurrencies have gained the attention of every investor out there. This is also a result of rise in currencies like Bitcoin and Ethereum. This article is primarily focused at Ethereum’s price predictions.
Ether is considered to be the bitterest rival of Bitcoin in the digital market. Since there has been a dramatic increase Bitcoin’s value over the past years, Ether has experience the same trend.
What are the Ethereum price predictions for 2018?
It is very difficult to provide a short term prediction since there is so much volatility in it. In fact it can even lose 25% of its value one day to regain it in the next few days. Looking at immediate effect and evaluating in the light of recent events only can be a mistake. One must have a long term impulsive approach to learn about the Ethereum price predictions.
The initial Ethereum price prediction is that it may break the $1000 benchmark. If not by 2018, it will reach this feat by 2020. This is very optimistic price prediction taking into account the currency’s current fluctuation. Such prediction is based on three main factors:
- There is an abundance of current and future supply of Ethers. There are over 92 million coins in circulation. The numbers will increase for sure, but at one point the users will make sure the number remains constant.
- Ether applications are vast. It has the ability to use smart contracts. It also allows developers to build decentralized apps. The more applications are built, more valuable Ethereum becomes.
- The demand is high which is the main factor for such Ethereum price prediction is. It is highly functional as a currency and holds potential as an investment vehicle which keeps on appreciating its value.
Ether may take over Bitcoin
This is another Ethereum price prediction that it may very well take over Bitcoin in the following years. So a dollar invested in Ethereum will have a better return on investment than Bitcoin by 2018.
The percentage that has been invested into Bitcoin has now dropped relatively and it has been expected that the same trend will continue due to emergence of new currencies. This has result into increase in Ethereum’s share of total money invested.
Other than that, Ether’s smart contract technology makes it interesting amongst industries due to the potential of real world applications.
But that is not all. Ethereum price predictions are not all good. There are some major obstacles that it may need to cover. The first issue is of scalability. It still runs on Blockchain technology and all the problems that Blockchain has to face, Ether will have to suffer and find a way out as well.
Another issue is of cloning technology. Any company can start its own currency tomorrow adopting blockchain technology. So this may affect Ethereum’s price predictions negatively.
Whatever the scenario is, reaching a one stringent conclusion is impossible. We don’t know what happens in future but we surely can anticipate it.