How much can Ethereum go up?
All kinds of digital currencies are noisy one after another. The more valuation factors there are, the more entanglements the valuation results will have. It will not be the currencies of various smart contracts and various contract ecology that can go up to the sky. If it is high, it will also be burdened with heavy shackles due to too many valuation factors, because its valuation requires the ecology to be liquid. Who will come to play with your smart contract ecology when it rises to the sky?
Once it rises, the ecological cost will increase sharply, the cost of contract creators will also increase, and the cost of user joining will also increase. They will tend to continue to speculate in coins, and the ecology will be unsustainable. Is there any reason to challenge a putative opponent?
Therefore, Ethereum, EOS, TRX and other currencies in the entire smart contract ecosystem have no foundation for continuous growth. On the contrary, only the simplest consensus currency has a chance to reach the sky, because their goals are clear and their imagination is obvious, such as: BTC, LTC, DOGE. Therefore, whether Ethereum can break through $1,000, I think there is a chance. However, the higher the price of Ethereum, the worse the expectation will be for Ethereum itself. How much is a reasonable valuation, and we will slowly see the changes in the entire environment . For currency speculation, it is best to hold Bitcoin and Litecoin in your hands, and the rest can be used as a swing band for the exchange rate with Bitcoin.
So, is now a good time to get on Ethereum? Some friends even want to exchange Ethereum for Bitcoin, which one is more suitable to hold?
Let me talk about a premise first. If the bull market is still expected (it has not yet peaked), you should continue to hold Ethereum. In this bull market, the total market value of Ethereum is likely to exceed the total market value of Bitcoin at a certain stage, and At present, the unit price of Ethereum has not broken through the previous high of the bull market in 2017. If you want to invest simply, it is recommended to hold both Bitcoin and Ethereum, and they will perform in turn. If you switch the full position of Ethereum to Bitcoin, you may encounter that you have just finished the position change, and the result is that Bitcoin adjusts sideways, and Ethereum A new round of explosions began.
One thing to note is that the operation of changing cars in a bull market is a big taboo. If the operation is done well, you may leave the ones that have not risen well, and change to the ones that have risen sharply, but more often than not, you will lose money if you do not change well. I have suffered a loss on this... I can exchange some positions (provided that I have not held any bitcoins before), so that the positions are dispersed, and the effect is not bad.
If you look at it from a longer-term perspective, it may be different.
The idea behind Ethereum is to create a decentralized global computer without a leader or boss controlling applications, your data, etc. According to Vitalik Buterin, Ethereum is the new Internet, with all its features and unlimited possibilities.
Future price predictions for Ethereum are usually quite positive. Their exact numbers may vary, but most agree that Ethereum is a good long-term asset. This is understandable, as Ethereum is the second largest cryptocurrency in the world and has attracted the attention of giants such as Microsoft, IBM, Amazon, and others. Even though some of its competitors are faster and more scalable, Ethereum still holds the number one spot for the number of Dapps it hosts. The cryptosphere is awaiting the next update, which should improve the network and address speed and capacity issues.
Ethereum's place in the larger digital asset ecosystem is growing. Its correlation index with Bitcoin and the introduction of ETH 2.0 in 2020 show that Ether has come a long way since falling nearly 94% from its ATH in 2018. For Ethereum, it has always been a case of price/performance in practical applications, but in terms of organic growth, the two go hand in hand.
There are clear differences between Bitcoin and Ethereum. One was repeatedly seen as a form of digital gold and won applause, while another claim to reinvent financial products was repeatedly shot down.
With the switch to ETH 2.0, security is also a major concern for the blockchain.
Ethereum started 2020 with neglect but has now turned in favor of ether. Its price has recovered enormously and is currently earning regular interest from the right investors.
It’s hard to disagree with Ethereum that ETH 2.0 won’t get off to a promising start if the price doesn’t skyrocket. , but if capital interest doesn’t lead to some financial growth, ETH could end up creating a digital economy for the masses.
