The market finally figured out that Ethereum is currently under-valued

in ethereum •  7 years ago  (edited)

New money is flowing into the crypto space with a total market cap of 256 billion USD

So now the question is what will Ethereum be valued at? This according to Metcalfes law would be influenced by the amount of new users and also the improvements made to the network to promote scaling. There were improvements made in the last hard fork, Casper has been implemented in the testing phase, Raiden is also close to being ready and is funded. So this means Ethereum is able to scale much more now, and as the price goes up more people will likely take notice of it growing the user base more.

The current price is $420ish. I think it can go $100-200 higher, but I do not expect to see $1000 in 2017. I do expect when BTC reaches $10,000 that ETH will likely follow to $1000 soon after.

See my post from 8 days ago to see that I made this prediction: https://steemit.com/crypto-news/@dana-edwards/according-to-metcalfe-s-law-ethereum-is-under-valued-while-bitcoin-is-in-a-bubble

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It is my understanding Ethereum's best use is as structured smart contract (trust-less contracts). The cost for running such a contract is ETH. The value of ETH is it usefulness as a sort of escrow.

So if the cost of ETH becomes too high, ie. expensive, its usefulness diminishes. As the crypto space matures ETH and other "smart contract" tokens (LISK, NEO, ETC) become commodities and the most cost effective coins/block-chains will be used.

This can be compared to energy; oil, natural gas, solar, hydro, etc. In a mature crypto world there will always be market pressures keeping these type of coins priced as low as is economically feasible.

For this reason I agree that short term ETH has speculative value but long term it has a relatively low ceiling.

Bitcoin => gold
Litecoin => silver
Ethereum => oil
the specialized tokens => natural gas, diesel, coal, solar, hydro, geothermal, uranium etc...

hmmm undervalued for quite a long time.. I believe Ethereum has real potential, perfect for cold storage... What you think

I think Ethereum is good from a speculation perspective and the technology is improving in critical areas such as scalability. I don't think it is the best design so long term my outlook is a bit grim but in the medium term my outlook is good for Ethereum. The main problems are it wasn't designed for distributed computation, and has a lot of security issues. They did work toward solving the privacy problem but the distributed computation at best can only be done off chain through another token, so it's not the ideal design.

Hm your point is also valid...🤔🤔🤔

Happy thanks giving to you!!!

Will be exciting to see how fast it takes changes in the next months. Great work thank you for sharing :)

I expect we will see $1000 ETH in spring 2018 but who knows in crypto.

That will be amazing. Everything in the future of crypto currency will have a big change!

I think ETH could overtake BTC cap in next couple of years as dapps continue to grow.

Thank you for the information.