Sirwin
Sirwin

Ethereum one step closer to digital gold

By World Crypto | World Crypto | 1 Jun 2020


The Ethereum blockchain has already surpassed the Bitcoin network several times in terms of targeted use and the number of deployed solutions.

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The discussion about the potential of a cryptocurrency asset is often limited only to bitcoin.

This is not surprising, since Bitcoin is the oldest cryptocurrency on the market and is most clearly aimed at the non-sovereign option of using value accumulation.

The title of "digital gold" is increasingly attributed specifically to bitcoin and plays an important part in the formation of a marketing campaign. So far, no other cryptocurrency has an equally clear and convincing usage model.

However, Bitcoin is far from the only cryptocurrency that can compete for the title of digital gold.

Of all cryptocurrencies aimed at an sovereign option of using value accumulation,Ethereum is the undisputed analogue of bitcoin, at least in terms of its intended use.

Swiss knife

The Ethereum ecosystem blockchain is known even outside the market and is the only public blockchain network that is actually used for its intended purpose.

To prove it, it’s enough to recall that now almost half of the total cost of the Ethereum blockchain does not account for ETH itself, but for other ERC-20 standard tokens.

Ether is the second largest cryptocurrency in terms of market capitalization.At the time of writing, ETH has a capitalization of $27 129 billion,and the price of ETH reached $ 244.

Cryptocurrency is used not only to support smart contracts or investments, but also as a trading asset.

It is not surprising that many are wondering: what will happen to the asset if the price rises to such a level that ETH could be called digital gold?

Explosive payback

The analytical agency Messari believes that with the current rate of ETH, the potential return on investment would have paid off more than 490 times if ether had reached the gold level.

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Messari analysts believe that the asset is waiting for an explosive payback, if it comes close to the scale of gold.

Here is what analysts wrote a couple of days ago:

“This sounds like a crazy offer for an asset whose capitalization is now $ 22 billion, but that does not exclude the possibility, if you remember that ETH is not a startup, but a nascent cash asset”

A similar opinion is shared by Blockfyre analysts.

Previously, they conducted a study of the development of the Ethereum ecosystem and came to the conclusion that the asset is trading several times lower than it would be worth.

A key factor in the growth potential is the fact that since 2014, the ecosystem has significantly increased its market position with the help of new developments, regardless of market price behavior.

 

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World Crypto
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