Is Ethereum A Bubble?
The economic bubble can be explained as continuous expansion followed by fail. Ethereum has experienced immense growth throughout 2017. Seeing its growth there has been a continuous debate, and many call it a bubble. Will it be able to prove itself as a strong decentralized platform or it will collapse confirming the view of many nonbelievers.
Ethers drive on ICO
One of the reasons behind widespread acceptance of Ethereum is a burst of ICO. Because of ICO, its price got skyrocketed.
What is ICO?
It is a new way of crowdfunding through the blockchain. It is a boon to the start-ups as they can raise funds through this by selling their tokens. It is the same as stock markets, here instead of stocks you have tokens and automated blockchain takes the place of brokers.
Role of Ethereum in ICO
Do you refer Ethereum as a cryptocurrency? If you do so then you are wrong, it is not a currency it the decentralized platform that runs smart contracts while ether is the currency that runs on the network.
Ethereum turned out to be a successful platform for ICO because of smart contracts. The platform is not regulated but it is not the matter of botheration; start-ups gained millions of dollars and traders made great profits by trading on the Ethereum platform.
Value of 1ETH pumped up from $10 to $ 400 at the beginning of 2017 and its market capitalization value rose to $1billion.
How is the value of ether determined?
- It’s demand in the market
- Demand in ICOs.
Is Ethereum a bubble?
Now we are already done with the research part so let’s get on to the main topic.
Is Ethereum a fraud scheme?
Some people think it like that as Ethereum belongs to one person. Particularly after the hard fork that was triggered by the creator himself. Here we need to understand that this is the way it works. Even the first decentralized coin that came to the market is not even fully decentralized, even the creator of that coin is unknown, so why aren’t we questioning that coin? For Ethereum the demand shows the trust is high enough.
Should its success be trusted?
After its success in 2017, the experts are quite positive about it. The amount of transaction is growing every day which shows its popularity and peoples trust in the network. The important significance that is going to happen in the network is, it is going to get switched to PoS.
Ethereum has changed the concept of blockchain as a mere provider of the transaction by enhancing its capability with the introduction of the smart chain. Doubt this network and comparing it with a bubble is a complete injustice. Continue reading to know about it.