How Far Down Will The Price Of Ethereum Drop? Will It Go To Zero?

Originally posted on Quora

Question: How Far Down Will The Price Of Ethereum Drop? Will It Go To Zero?

My Answer:

Very probably not.

ETH is simply the token of Ethereum, which provides the infrastructure backbone for the current blockchain ecosystem.

For instance, the vast majority of blockchain projects run on the Ethereum network, and use the ETH token to pay for “gas” as its called, to process network transaction fees. The vast majority of tokens you see listed today are ERC20 – Ethereum standard – tokens.

“The Ethereum blockchain is, without a doubt, the most active smart contract platform in existence. Of the top 100 tokens by market cap, 94% are built on top of Ethereum. Of the top 800 tokens, 87% are built on Ethereum. Most of these tokens are “ERC-20 tokens,” which made possible the majority of the $5.5 billion raised through token sales in 2017 and the $6.5 billion raised in just the first quarter of this year.”

“The Ethereum developer community is estimated to be the largest in the world, at 250,000. In October 2017, Truffle — a development framework for Ethereum — surpassed 200,000 downloads. In less than a year, downloads are now at nearly 550,000. Github, which draws open-source developers from around the world, lists 14,000 repositories and 220,000 commits concerning Ethereum. MetaMask — a browser extension allowing users to to run dApps without running an entire Ethereum node — has reached over 1 million users.”

Ethereum Transaction Chart

Source for images and quoted text above: The State of the Ethereum Network – ConsenSys Media

Secondary trading markets, which establish the trading price of of given token don’t tell you anything about the long term value of a given blockchain project any more than today’s stock price tells you about the long-term potential of a given company.

Amazon looked like a great buy in 1998, a terrible buy in 2001, and a great buy into perpetuity, in 2018.

Markets fluctuate. Basing investment decisions regarding Bitcoin, Ethereum, or any other major cryptocurrency is simply naive. Look at the business and technical fundamentals of the given project, and plan to invest for the long term (years, not months).

Looked at in that way – Ethereum is as solid as it gets.

“This brings us to the important question ‘what can be the Ethereum price? You need to understand that you have to look into the usability as well as the application of the cryptocurrency. When you are able to look at the usability and application of cryptocurrency, thereafter only it would become easier for you to understand how its value can appreciate. When you’re looking at Ethereum, you would realize that it is underlying capability that is it provides decentralized processing power as well as bandwidth. Owing to this very reason, Ethereum is much different as compared to the other tokens which are just a token for investment. This also means that the value of Ethereum would increase in the future.

In the current year that is 2018, it is predicted that Ethereum would reach around $ 2500. By the end of next year that is 2019, it is expected that Ethereum would be somewhere around $ 14,000. Similarly, by the end of the year 2020, it is assumed that Ethereum would be around $ 31,000.

Thus, when you look at the kind of returns which are expected from Ethereum, you would realize that it has a long way to go still.

Reasons why Ethereum can appreciate by a significant amount:

some of the reasons include:

  • Increasing application uses
  • more companies adopting decentralized cloud-based applications
  • increased usage of smart contracts

These are the 3 reasons why Ethereum is being more widely used. You need to keep in mind that when it comes to Ethereum, the more the platform is used, the higher would be the price of the token. Owing to this very reason, you can be sure that the value of Ethereum would increase in the future as well.”

Source: Ethereum Price Forecast: How High Can The Price Of Ethereum Go? – Ethereum News Today -Thu Jun 28 | Smartereum

Resource Links

Ethereum Project

Enterprise Ethereum Alliance

Members – Enterprise Ethereum Alliance

State of the ÐApps

The Top 20 Ethereum Tokens – Invest In Blockchain

The State of Scaling Ethereum – ConsenSys Media

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