Bitcoin Global News (BGN)
December 07, 2018 -- ADVFN Crypto NewsWire -- Earlier today, the
price of Ether dropped all the way down to $80, which is a far cry
from its’ all-time high of $1431. As with any other major market
movement in the history of cryptocurrencies, Twitter, Quora, and
many other platforms quickly became awash with theories on why this
was occurring. In most cases, these propositions seemed to amount
to no more than hearsay or clear fear mongering, but in some cases,
they continue to ring true.
Firstly, the idea that Ether has
lost its’ true value somehow and will plummet to zero in the near
future has little credence. The primary reason for this is quite
simple. Numerous projects still exist that add real value to the
Ethereum platform and show no signs of quitting. Think about
Numer.ai, which has over $1 million in tokens staked on billions of
predictions about just about everything. Furthermore, at this
point, Ethereum based crypto exchanges account for around 730,000
transactions a month on average with 45,000 monthly active
users.
While none of these numbers
indicate anything close to widespread adoption, they do show that a
value for Ether exists. If you’re wondering where our rationale
comes from on a strategic level for stating this, think about
network effects and platform strategy. The more users, the more
value there is, and vice versa.
In the end, what we can conclude
about the Ethereum network without considerable insider knowledge
on the subject is that it has a value of more than zero. Any time
that you hear someone profess to have special knowledge of what
that value is, you should take such a claim with a grain of
salt.
Truthfully, as with any investment
vehicle, only considerably more time on the market will give us the
answer that we all seek here. Think about how long the traditional
stock markets have been operating for a moment. Just because
cryptocurrencies are new technologies does not mean that we throw
away all our common sense.
Crypto assets will remain volatile
until they are consistently considered on the same level as
traditional stocks. In other words, as a space, we are expecting
too much at too early of a time.
By: BGN Editorial Staff