The price itself is an “exchange weighted volume average”. This page connects via WebSocket to enable rapid messaging of price data as each trade happens. The live price shown on this page is calculated through the API. Below are the answers to several frequently asked questions which should go some way to helping you understand how this website functions. Frequently Asked Questionsįor those new to Ethereum or trading in general, some of the above metrics may need some clarification. Ethereum will continue to experience high growth and major retractions, but once the bubble has burst for the umpteenth time, it will finally become apparent (to everyone) just how much value underlies this technology. Whilst “irrational exuberance” is rife, the fundamental value of this technology is enormous, potentially greater than the current speculation that drives the price to dizzying new heights. Bubbles have typically been associated with value that isn’t there – a sudden collapse of an asset which was propped up by nothing but speculation. Ethereum co-founder Joseph Lubin states that “of course it’s a bubble”, but his outlook on Ethereum remains extremely bullish. Many high profile news outlets and financial experts have talked of Ethereum as a bubble such high growth is surely followed by a crash. Such exuberance has been seen time and again in human history and this time it’s no different. Irrational exuberance will follow any asset class which is capable of demonstrating consistent growth and seemingly guaranteed returns. This clash between Ethereum and government/central banking has and will continue to be a main source of volatility for the price of Ether. Whilst the disruption would be almost entirely positive (improved transparency, less corruption, faster and cheaper global transactions, cheaper accounting and wealth equality to name just a few) regulators are quick to go on the offensive if their monetary policy is threatened. Unlike technologies of the past, Ethereum and its underlying “blockchain” have the potential to heavily disrupt financial systems. Other regulators have also been hostile to cryptocurrencies, particularly those in developing nations such as India as well as nations undergoing a major economic crises as seen in Venezuela and Zimbabwe. In the case of China, a somewhat knee-jerk reaction was made to ban “Initial Coin Offerings” (ICOs) as retail investors ploughed funds into untested and potentially malicious projects. In this case however, Ethereum and other cryptoassets have grown so fast that many regulators have been caught off-guard. Many new technologies are quick to grab the attention of regulators. Ethereum has so far been able to dominate the technological challenges in front of it however the ability for Ethereum to scale to billions of users is still doubted by some.įor further information about Ethereum, the technology and how it may change the world for the better, see this guide to “ What is Ethereum?“. It is not unheard of for Ethereum and other cryptocurrencies to double in value overnight. As each challenge is overcome, a euphoric bull run typically follows, attracting more investors and more speculation. New technologies bring with them an array of challenges, many of which have accounted for several rounds of panic among investors. Some contributing factors to this price volatility are:Įthereum is a promising new technology that could fundamentally reshape the way humans interact. As can be seen by the historical price of Ethereum, the trend has been dramatically positive. It is not uncommon for a “stock” like Ethereum to lose 10 to 20% of its value in a 24 hour period nor is it uncommon for the opposite to also occur. The price of Ethereum has increased from less than $1 in 2016 to well in excess of $1,000 at the start of 2018. Speculation is fierce as the rate of return for Ethereum investors has far outperformed mainstream stocks, shares and other asset classes. Ethereum and other cryptocurrencies experience a huge fluctuations in price as speculators buy and sell the asset by the billions of dollars. For those new to the market, the variation in price over a short period of time can be perplexing and a little worrying.
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