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Can Ethereum Really Reach More Than $1000?

Can Ethereum Really Reach More Than $1000?

By Reynaldo Gonzalez 8/12/2017

 Imagine Ethereum Hitting $1000+?  (Could Happen)

Imagine Ethereum Hitting $1000+? (Could Happen)

Raiden network ( An payment channel network for Ethereum)

As Of Now, the Ethereum network is limited to around 20 transactions per second. This is twice as much as Bitcoin can handle. However, if we are looking at a future where Ethereum is used as a daily form of payment, this isn’t enough.

The Raiden Network is aiming to solve this problem. Its developers are building an off-chain solution for Ethereum payments which scales linearly with the number of participants. The network could in the future handle over 1,000,000 transactions per second.

Additionally, it will allow decreasing transaction cost by seven orders of magnitude, making true micro-transactions on Ethereum a reality.

Anyone Can Have and have Access To Ethereum

So far there are around 60 active cryptocurrency exchanges. This number is growing every single month as digital assets become more and more attractive. However, the average American is not comfortable with buy and sell limits and trading charts.

Therefore, new alternatives need to arise that allow the crowd to acquire Ether. Companies like Dether are working on platforms that allow interested parties to purchase Ether directly with cash. This is definitely a big step in the right direction.

At the time I’m writing this article, the market capitalization of all cryptocurrencies combined sits at around $110 bln. However, most owners of currencies like Ether and Bitcoin don’t actively spend their coins; they use them as an investment.

In order to see Ether at $2,000, more people need to start using it as a form of payment, and more vendors need to start accepting it. This would prove that Ether is a viable method of value exchange.

ICOSs Are Hot!

So far, over $1 bln was invested in ICOs by contributors from all over the world. That’s a very impressive figure keeping in mind that this method of funding was practically non-existent before the launch of Ethereum in 2015.

Most startups that hold an ICO, issue Ethereum-based tokens. Therefore, it was also one of the most important growth catalysts for the network in early 2017. ICOs have proven to be an extremely efficient method of funding, enabling hundreds of startups to raise enough money to start operations.

The SEC and the Monetary Authority of Singapore have clarified in many instances that some of the tokens sold through crowdsales are actually securities and need to adhere to its respective regulations. Despite this, most ICOs still issue tokens that would be declared illegal by most authorities.

Once this gray area is solved, Ether will likely see a lot of new money flowing in, and more investors getting involved in token sales.

Conclusion

The current supply of Ether is around 93 mln coins. Vitalik Buterin has pointed out many times that the total supply will probably never surpass 100 mln if PoS is correctly integrated.

If Ethereum switches successfully to PoS, there will be a significant drop in the daily issuance rate of Ether. This means that less Ether will be created every day, thus reducing the total supply of the coin.

Additionally, once PoS is activated, Ethereum investors can opt to use their stake to verify other transactions in the network. In exchange, they will receive rewards paid out in this cryptocurrency.

This will very likely attract a new wave of investors seeking cash flow producing assets.

Until now, $2,000 Ether is still just fuel for our imagination. However, the technology has very solid fundamentals and many announcements to come.

With the support of a growing community, everything is possible.

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