BTC and ETH are doing well according to what we discussed in the last post. Looks like it will take day or two more before the current structures will be completed. Then we will look together into the charts again.
For today the author wants to talk about more general topics.
The history tends to repeat itself. But before we go deeper on it, we need to understand one point. Regarding the Ethereum there are two general opinions:
- It is Bitcoin 2.0
- It is just another altcoin
Let us first start with “altcoins”. Their price rises over quite short period of time and then crashes. Here are some examples.
So the opponent of Ethereum like to repeat it is just another pump and dump coin. It will repeat the story of other altcoins (means price crash and stagnation).
If we, however, are going to get Bitcoin 2.0, as the Ethereum believers say, then we will repeat the story of Bitcoin itself. May be even with magnitude x2.0. Surely, we need to take into consideration that at the end we will have around 90 mln. ETHs against 21 mln BTCs. So it is unlikely we will get to 1000 USD per ETH. But the price of 100-200 USD per ETH seems to be reasonable enough. So the speculators speculate and the investors invest.
And here we are coming to the “some historical background”. The BTC price was never like a quiet and steady rise. It was pretty bumpy, to say the least. Just read this very nice post from reddit -> Bitcoin bear traps
There is no reason why ETH should behave in a more quiet way. It will be rising and crashing all the way to the high. Finally, we are dealing with smart contracts and as the example with “the DAO” shows it is quite unknown territory with many more surprises on our way to be expected.
But unless something completely unpredictable will happen on our way, the Ethereum is very likely to become Bitcoin 2.0
Enjoy the ride and be careful with dumps. Also risk only as much as you can lose. Cryptoinvestemts are potentially very profitable. But high profits are always bound to high risk. After the next depression now is officially confirmed (brexit is the key event here) we never know what our beloved governments will try to do in order to stop the increasing power of decentralised networks. During the 1929-1934 crash they banned gold. Can be they will try to ban or at least heavily control crypto assets during the oncoming crisis now.
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