How do you conduct an effective Ethereum price prediction in 2020? There are a number of new traders who are wondering whether to invest in Ethereum or not and even experienced traders are wondering if there could be a resurgence in Ethereum’s price in 2020. There is no doubt that Ethereumis one of the undisputed darlings of the crypto world and since 2016, it has led to the introduction of thousands of new cryptocurrencies. This particular platform has provided a myriad of opportunities to projects interested in building blockchain applications. Moreover, VitalikButerin, the figurehead of Ethereum is considered an ambassador for cryptocurrency as a whole.
What is Ethereum and Why Does it Have any Value?
Currently, Ethereum is the world’s second largest cryptocurrency in terms of market capitalization and was the revolutionary brainchild of VitalikButerin, a renowned crypto-engineer. Previously, he had worked for Bitcoin Magazine and he spent 2010 and 2011 studying the Bitcoin source code. Once he learned how Bitcoin worked, he asked the core developers to expand the functionality of Bitcoin by allowing users to add code to the blockchain. His suggestion was dismissed and this prompted him to design his own cryptocurrency that would give users the ability of programming and running code on the blockchain itself.
He created Ethereum in 2013 and released its whitepaper. The next year, he met a couple of other crypto enthusiasts in Miami at a conference and they also became the founders of Ethereum. At that time, Bitcoin and other cryptocurrencies were mostly used as a store of value. In contrast, Ethereumtook advantage of computational objects known as ‘smart contracts’ for creating code, uploading it to the Ethereumblockchainand then running it. The ICO boom in 2016 and 2017 was the primary reason that Ethereum’s exposure and value exploded as hundreds of projects began using it for creating their own cryptocurrencies.
Before this, their only option for creating a cryptocurrency was to ‘fork’ or copy Bitcoin’s code and make slight modifications to it. They could also go through the lengthy and complicated process of creating new code from scratch.
Since its inception, it has been very difficult to predict Ethereum’s price. This is not because of overestimation, but mostly because it was impossible to predict that the project could be as successful as it is nowadays. During the Ethereum ICO, the price of 1 ETH was $0.31, but the current value indicates that investors have enjoyed a significantly high Return on Investment (ROI). During a period of 42 days, an amount of $18 million was raised through the Ethereum ICO. At that point in time, it was the largest ICO and many who had been keeping an eye on the state of the cryptocurrency industry were simply stunned.
After its ICO, Ethereum saw its price increase to $2 and it floated between that and $15 until mid-2017. This was when the infamous bull-run started taking off in a major way. In the second half of 2017, it became one of the best performing cryptocurrencies as per ROI. On January 16th, 2018, Ethereum reached an all-time high of $1377. But, this was the same year when jaw-dropping price crashes took place in the crypto market and by April, Ethereum’s value had been reduced to $384. 2018 turned out to be a bleak year for all cryptocurrencies and Ethereum was no exception.
In December, its price had reduced to as low as $84 and this was a price collapse of 93%. But, in 2019, there was a resurgence in crypto assets and Ethereum saw an increase in its price once again. While this growth is certainly positive, it hasn’t enjoyed the same level of growth as Bitcoin. This has led many to believe that 2020 is the year that an altcoin boom will take place.
Even though Ethereum has been lauded widely in the crypto industry, the network’s inability of dealing with scalability and speed has been its major problem. Luckily, the project seems to be on the way to fix it in 2020 with Ethereum 2.0, which has two primary facets that will not only help in improving scalability, but will also reduce transaction costs and times.
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