As the price of Bitcoin broke through a record high, other virtual currencies have also ushered in a new round of hype. Although the prices of mainstream virtual currencies in the market are extremely volatile, judging from the trend in the past ten years, The prices of these virtual currencies are mostly in an upward trend. So what are the main reasons for the continued rise in the price of Ethereum?

1. Reasons for the increase in funds involved in the transaction

No matter what type of financial transaction product it is, the main reason for the sharp rise in price is inseparable from the impetus generated by the entry of a large amount of funds. The reason why the price trend of Ethereum has continued to rise in recent years is mainly because many investors do not know much about virtual currencies, and as virtual currencies led by Bitcoin have performed a miracle of a hundred-fold increase in ten years, there has been some More and more investors are involved in virtual currency transactions.

2. Reasons for excessive currency issuance by governments in various countries

The reason why the price of Ethereum has continued to rise in recent years is that many countries have been hit by the new crown epidemic in the past year. In order to deal with the adverse impact of the epidemic on the economy, governments of various countries have started to print money and issue currency frantically. However, when the currency is seriously oversupplied, virtual currencies such as Ethereum become a safe haven for a large amount of funds.

3. Reasons for the rise of other virtual currencies

Ethereum is not the only virtual currency, there are a large number of other virtual currencies in the market, and the price of Ethereum is often affected by price fluctuations of other virtual currencies. Under the influence of Bitcoin's recent crazy rise, Ethereum has been affected by the rise of other virtual currencies, and its price has also continued to rise in the past period of time.

Many investors are attracted by the continuous upward trend of virtual currency in recent years, but the essential reason behind the continuous rise of virtual currency is not so simple. In general, the issuance price of Ethereum can continue to rise. It is because of the increase in the number of investors participating in the transaction, and on the other hand, it is also inseparable from the crazy money printing behavior of governments of various countries.