The One Reason ETH Price is Skyrocketing
If you’re into cryptocurrency at all, you know that Ethereum’s token Ether has skyrocketed over the past month — at the time of this writing it’s up by $26.25 compared to last month. And while that’s great, I see a huge problem that’s actually stunting growth. People don’t understand what Ethereum actually is.
My concern was realized when Ethereum popped up on a major news source two days ago. CNBC reported on ETH’s all time high price, and described Ethereum as merely a “different blockchain” that allows for “traction among big corporates.” The surge happened, they suggest, because alternative digital coins (altcoins) have more potential value than Bitcoin.
Even Coindesk, who has recently lost some of my respect over this issue, is crediting issues with Bitcoin as the main reason Ethereum is taking off, saying “There are far bigger gains to be made nowadays in altcoins than in BTC … Far more money to be made, and more risk, in altcoins!”
I read an article this morning that described ETH a bit more accurately than Coindesk and CNBC, calling it, “a B2B facing platform,” and stating that, “consumers & media don’t know or really care about it.” While I agree with Vinny Lingham’s latter statement, I’d like to clarify the former.
In contrast to Coindesk, CNBC, and Vinny, I believe the one reason ETH price is skyrocketing is simple:
Ethereum has the potential to be the best C2C platform in existence.
Pretty much everybody knows that Bitcoin’s vision is to replace “fiat currency” — the green stuff that lines your wallet. It is unfair to say Ethereum is an alternative coin to Bitcoin, because its purpose is radically different.
Ethereum is a platform, specifically for C2C interaction.
Let’s say for a moment that your friend Jill loves online gaming. In fact, she loves it so much that she’s starting to develop her own online game. Her game is unique though — the in-game items that you’d usually purchase to enhance your experience are programmed using Ethereum’s blockchain.
Jill figured out that by using the Ethereum platform, she’s able to create digital representations of your favorite in-game armor, and you actually own it. When Jill creates the sequel game, you can transfer the armor you bought in the first. And, if you’re tired of that armor, you can sell it to another player. This is Ethereum in gaming. (For more on this, check out this fantastic article)
There are so many more practical use-cases for the Ethereum platform that I couldn’t possibly explain them all here. Think social media, subleasing your apartment, video streaming, restaurant management — the list goes on and on.
The price of ETH is going up because people (like me) are investing in a platform. We see the massive potential in an internet-like structure that allows C2C (and yes, B2B) applications to be built on top of it.
Very simply put, Bitcoin is to Ethereum as a website is to the internet.
Which would you rather invest in?