This article will take a look at why ethereum is looking fundamentally strong in this bear market, With a host of fundamental news coming up in the forseeable future, there looks to be a bright light at the end of the tunnel.
Looks like it’s time to try and counter some of the negativity, fud, and trolling infecting the cryptocurrency market lately. The sentiment towards Ethereum is eerily similar to Q4 2016, after the DAO Hack and the subsequent bleed out of ETH from $20.00+ down to $6.00 and the accompanying existential dread.
1. Launching of Ground-Breaking dApps
The first (and some of the greatest) dApps on Ethereum have launched or will be launching soon.
- Maker is already an unmitigated success and could very well become the go-to stablecoin by the end of this year. Maker looks to be a truly revolutionary project in and of itself, and operating within the Ethereum ecosystem is a beautiful synergism that will only help both endeavours in the long run.
- Golem looks to be launching Brass on the main net soon. This is still one of the sexiest projects out there, both in the mainstream and crypto communities. Granted, some of the lustre has worn off given the team’s tendency to overpromise and under deliver (and their terrible Public Relations efforts). However, if they can deliver even a fraction of what they’re looking to accomplish, GNT (and again by extension ETH) could be prime for an explosion and could bring more mainstream eyeballs and adopters to the space.
- Digix Gold-backed tokens is another stable-currency of sorts, but more importantly, the first serious tokenization of real-world assets. It will bre released on Ethereum’s main net soon.
- Augur will launch on the main net in a matter of weeks. Prediction markets are a perfect fit for blockchain. And, yes, there is more use for Augur than simply gambling on sports. Individuals and corporations alike could self-insure/hedge on a micro- or macro-basis. (See more: Blockchain & Banks: A Good Fit?)
* Example: Farmer Frida worries about her crops in the irregular dry seasons that afflict her region. She decides to insure herself by establishing a prediction market wherein she bets that there will be at least one dry season in the next four. If she loses the bet, great, because that means she has had four wet seasons and the good crops that come with them. If she wins, she’ll collect on the bet and be able to better weather a dry season (and the diminished crop that resulted). This kind of insurance / hedging has only ever been possible at an institutional level and at amounts that are either prohibitively expensive or just don’t make sense for the average individual. Augur makes it all possible at a fully decentralized, micro level.
(Read also: Analyzing Cryptocurrency Risk: Existing Coins vs ICO)
2. Consensus 2018 Summit
It is perhaps the largest blockchain conference in the West. Last year’s conference came when ETH hit $100 (it seems almost quaint to look back and watch some of the conference participants gush about hitting that milestone). May 14-16 should be a nice shot in the arm for blockchain generally, and Ethereum specifically.
3. Price Action
Both Bitcoin (BTC) and ETH seem to be consolidating (finally) around $6,500-7,500 and $370-410, respectively. Bulls and Bears seem to be content to graze quietly in their fields and woods. (Read also: Bitcoin vs Alt Coins Returns: Comparison of Gains Between Bitcoin & Altcoins Investing)
1. Scaling Solutions
The Ethereum Foundation is working furiously toward scaling solutions (as well as the migration away from PoW). Plasma, Sharding, Casper, are all priorities for the Foundation and its allies in building out a scaled, decentralized blockchain. If anyone can do it, they can. (Note, scaling has plagued blockchain for almost 10 years, but it plagues every network and organization. The million dollar question is whether Ethereum can become the Web 3.0 it wants to be or merely just a blockchain solution. Here’s a look at one of Ethereum’s scalability solution; Sharding.
2. Enterprise Ethereum Alliance
The EEA continues to add interesting allies, but maybe more importantly for the medium-term, plans to enhance its marketing. A polished marketing campaign could be just what Ethereum needs to gain the kind of mainstream traction that will push it to the top of the heap in terms of price and adoption.
3. Institutional Investment
Physically settled futures is the first step toward ETFs, which would allow more and more institutions to get on board with the latest commodity asset. And when I say institutional, it’s not just corporations and banks; think sovereign funds and fixed-income providers with trillions at their collective disposal. Even without ETFs or other more traditional investment vehicles, you could imagine an increasing number of hedge funds, family funds, and corporations getting on board and buying cryptocurrencies as part of their portfolio.
4. Proof of Stake
PoW is getting a bad reputation in mainstream media; it is expensive, environmentally unfriendly (we can all disagree about the degree to which PoW contributes to pollution, but no one would argue that it doesn’t contribute much more than PoS would), and already being pushed out of communities and jurisdictions that don’t want to sell all their power to a handful of crypto mines. PoW also inevitably leads to some degree of centralization based on economics alone. Staking brings with it the promise of a cleaner, just as secure blockchain, as well as dividend-like rewards for stakers. If implemented successfully, PoS could make ETH the most attractive cryptocurrency by itself (let alone the network and platform that it enables). (Read also: Guide to Ethereum Hard Forks: Ethereum Classic, Etherzero & Metropolis)
1. Web 3.0
If ETH can scale to the level it aims to and can create a robust, dApp-driven platform, it would be world-changing (and the price would more than likely reflect that). Even if ETH only manages to provide a decentralized backbone to just a handful of successful and widely adopted blockchain projects, the price could still soar.
2. dApp Store
The analogy isn’t perfect, but if Ethereum becomes a dApp store and ETH is the fuel/toll for operating on the Ethereum blockchain, you could be looking at the next edition of the Apple/Android App Stores. ETH holders and stakers will have effective shares of that dApp store on their hands—benefiting from both platform usage (scarcity/security etc.) and the resulting price action and from staking, whether individually or in a pool. This alone could drive a market cap into close-to a trillion dollars. (See more: Guide to Valuing Cryptocurrency: How to Value a Cryptocurrency)
3. Widespread Adoption
If Ethereum becomes the go-to blockchain for individual and enterprise solutions (and it is easily the best situated to do that from today’s perspective), the demand and value of ETH will be directly correlated. And, as we know from the last 10 years of the evolution of the internet (see: social media), networks have a geometric effect on value as they spread. Here are the scenarios:
- Get thousands of people using applications on the Ethereum blockchain routinely—price is great.
- Get a million people using applications on the Ethereum blockchain routinely—price is huge.
- Get a billion+ people using applications on the Ethereum blockchain routinely—price is unimaginable.
4. Unforeseeable Usage
When the internet was first achieved mainstream adoption, no one quite knew what to make of it. The idea of an internet-based marketplace was almost farcical; who would want to buy something without seeing/smelling/touching / trying it first? The same went with banking, purchasing, storing knowledge bases, etc. We know how that went. What will other use cases blockchain enable? Can we even fathom them right now? Could you have envisioned a fleet of driverless vehicles summoned on your smartphone just a decade ago? How about five years ago?
Technology is wild. Ethereum and blockchain are on the bleeding edge and are just building up momentum.
TL; DR: The future is extremely bright. Strap in. Enjoy the ride. And don’t get bucked off on anyone’s terms but yours.
(See also: Coins, Tokens & Altcoins: What’s the Difference?)
Beneficial Resources To Get You Started
If you’re starting your journey into the complex world of cryptocurrencies, here’s a list of useful resources and guides that will get you on your way:
Trading & Exchange
- Crypto Guide 101: Choosing The Best Cryptocurrency Exchange
- Guide to Bittrex Exchange: How to Trade on Bittrex
- Guide to Binance Exchange: How to Open Binance Account and What You Should Know
- Guide to Etherdelta Exchange: How to Trade on Etherdelta
- Guide To Cryptocurrency Trading Basics: Introduction to Crypto Technical Analysis
- Cryptocurrency Trading: Understanding Cryptocurrency Trading Pairs & How it Works
- Crypto Trading Guide: 4 Common Pitfalls Every Crypto Trader Will Experience
- Guide to Cryptocurrency Wallets: Why Do You Need Wallets?
- Guide to Cryptocurrency Wallets: Opening a Bitcoin Wallet
- Guide to Cryptocurrency Wallets: Opening a MyEtherWallet (MEW)
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