Virtual Digital Assets in the form of cryptocurrencies have been grabbing a lot of limelight recently and are one of the most discussed topics across the financial corridors of the globe. This year the cryptocurrency markets have shown an unprecedented growth and received huge participation from the global investor community.
The valuations of two most transacted cryptocurrencies – Bitcoin and Ethereum – have crossed many billions of dollars, and are the hot picks among investors as an alternative source of investment over other traditional mediums like Forex or the stock markets.
With economic uncertainty looming over owing to major political drifts and other global tensions, it is said that many investors are looking for an alternative source of investments and have cryptocurrency as a safe haven. One of the major reasons is of-course the peer-to-peer transactions that Ethereum technology supports without the involvement of any middle-man.
Aaron Batalion, one of the partners at Lightspeed Venture Partners, says that he expects the price of Ether to jump by more than 50% in the near future. And while extending his predictions further, he said: “Over the next five to ten years, I believe it will be worth 10 or 100 times its current value.”
However, while commenting on the technology that backs Ethereum transactions, Battalion said “As with any new technology innovation, the early attempts are fraught with challenges, but this technology will not go back into a box and disappear. We will see meaningful companies built using this technology and fundraising approach, even if the normal end user doesn’t realize it’s part of the foundation of a product (or) service they use.”
Moreover, other statistics that support the claims of Ethereum’s rise in future is that just within two years of its inception Ether has been one of the favourite picks of investors and has surpassed even Bitcoin when it comes to percentage growth.
Moreover, one more reason which can be attributed to the faster growth of Ethereum in future is that the cryptocurrency market is witnessing less volatility and more investor confidence in comparison to its early days when Bitcoin was introduced in 2009. As the technology backing Ethereum is getting more secure and stable, investors are gaining confidence to park their hard earned money and see it grow.
The team at Ethereum is working towards introducing a more enhanced Raiden Network, which will be able to handle more transactions per second compared to the limit of 20 transactions as offered by the existing network. This will certainly contribute towards an incremental shift in the investor participation. Once this new technology is in place, Ethereum can also be considered and given a push to be accepted purchase and exchange of many goods and services, Thus as Ethereum becomes more mainstream and widely accepted, the currency valuations are expected to surge further.
Many analysts have already started predicting that the price of Ethereum can easily cross $1000 mark in the early 2018 and there is enough probability that it might even cross the price of Bitcoin ahead in the long term.
With Initial Coin Offering (ICO) Projects, worth millions of dollar, on the rise and expected to grow in the near future, there has been an increasing interest in buyers to purchase Ethereum. Jörg von Minckwitz, CEO of blockchain-based payment service Bitwala, explains the reason saying, “Many crypto projects raise money from the community to develop their projects, and most of them use Ethereum to raise money. The result is that many people buy Ethereum to be able to invest in the projects and many of the ICO projects hold the money afterwards in Ethereum. That drives the price up.”
While considering all the above factors and analyst predictions, it is much likely that future for Ethereum looks bright and most of the investors could even make fortune by early basking into its purchase. However, it is quite difficult to predict and exact amount and time-frame of the growth as the existing point-of-time.