Why is Ethereum so expensive (why is Ethereum valuable)

Why is Ethereum so expensive Ethereum so expensive

Ethereum is the most popular topic in the Cryptocurrency market, which triggered discussion in the whole market during the rise of Bitcoin and Ethercoin. As more and more institutional investors enter this industry and the investment demand in other digital asset fields continues to increase, the value of Bitcoin has also begun to rise to a new position. 1. Coinbase, the Cryptocurrency exchange, announced that it supports the use of its platform to trade Cryptocurrency, and Coinbase said that it will become a “major Bitcoin custodian”. 2. The Federal government of the United States initiated a lawsuit against Ripple: XRP is not a security; 3. Ethereum Foundation is providing funds for Ripple; 4. The South Korean Financial Services Commission has approved the suspension of XRP payment business by Ripple; 5. Japanese Finance Minister Tarō Asō said that he would consider whether to ban Cryptocurrency related products in Japan. (Bitcoin)

Why Ethereum is valuable

Ethereum is an open source smart contract platform designed to provide developers with a set of tools, interfaces and frameworks so that developers can use the software to build applications

At present, blockchain technology has begun to evolve from the traditional database architecture to a distributed Ledger system, and has become the value transmission layer of mainstream Cryptocurrency. It is also considered as the future value storage means of Ether Why is there such great value? There are two reasons: firstly, it exists as a decentralized trading system; Secondly, Ethereum is a digital asset, and its appearance has changed people’s lifestyle. This makes Bitcoin increasingly important, as it has greater economic attributes than gold. But for other digital currencies, Ethereum is unable to realize its full potential. So when you regard Ethereum as a global Electronic cash, a new payment form will appear. This payment form may have a significant impact on the US dollar, so more users will turn to Ethereum for payment

The third point is its network effect. It is a community led ecosystem that provides a series of financial products and services, including DeFi, NFT, etc. But it also lacks the technical capabilities required for traditional banking operations The fourth point is that its consensus mechanism is strong and very powerful, and the operating speed of this ecosystem far exceeds the scope of internet giants

The fifth point is its security and tamper resistance, which is something Ethereum does not have. If Bitcoin is the best money carrier in the world, then Ethereum is the greatest wealth store of mankind, and may even replace all currencies on the earth – such as RMB. Bitcoin is different. Because Ethereum has the same network design as Bitcoin, and Ethereum is the only place with these characteristics, this is one of the reasons why it can be so attractive In addition, there are many things to refer to: what we often refer to as “deflation”, also known as the increase in liquidity. Ethereum is like gold, as long as you hold a gold bar, you can purchase a bundle of gold. The total constant supply of Ethereum is 21 million pieces, and only 210 billion pieces are in circulation. It will issue 1% more every month and 100 million pieces every year. The market value of Ethereum accounts for only 2% of the total valuation of all virtual worlds, while its share in the entire digital world is only about 4%. (The above viewpoints are for reference only)