![]() 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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