Ethereum price prediction 2019
The rise of Ethereum over the last four years is best described as spectacular. Ethereum has a lot of innovation on the planning which means the increase is bound to keep going.
The difference between Ethereum and the coin ether
Before we continue, it is important to be clear about the difference between Ethereum and ether. These two terms are often confused.
That does not necessarily matter, most investors know what you’re talking about if you use one of the two terms, but there is a substantial difference.
When we refer to Ethereum, we’re referring to the entire network and the blockchain. Of course it’s important that there is a token available on that network to represent value. After all, there must be a way to pay each other. In addition, miners must be able to earn a reward for the work they do.
This is where ether comes into play. This cryptocurrency, or token, represents a value on the Ethereum network. Ethers are therefore the payment units and thus form an essential part of the whole. If someone tells you they’ve bought or sold Ethereum, they actually mean the coin ether.
What will the price of ether do in the coming period?
First of all, all our expressions about the predicted price of ether are subjected to change. Unfortunately we don’t have a crystal ball that enables us to predict the price exactly. But a technical analysis could give some indications.
At the end of 2017 and early 2018, ether was immensely popular. The value increased to record heights. One of the main reasons that ether’s value increased a lot, is because you needed ether to invest in ICO’s and ICO’s were immensely popular in 2017. The decreased interest in ICO’s reflects in the ether price. In one year the price has fallen from a thousand euros to just over three hundred euros.
There are already a lot of Fortune 500 companies that have promised to build applications (or dApps, decentralized apps) on the Ethereum network. And they need ether for that. Therefore you could assume that the use of ether will grow again in the future.
As more and more companies develop apps for Ethereum, you would predict the currency to become scarcer. But ether (at least for now) doesn’t have a hard cap. The coin can be created indefinitely. But if demand rises, this could affect its value. A rising demand almost always leads to a rising price.
However, keep in mind that investing in ether on the shorter term can be quite volatile. Many investors therefore see ether as a long-term investment.
The 2019 Ethereum roadmap
A lot of improvements will be made to the Ethereum network in 2019. You can even find a roadmap for this, which is called Ethereum 2.0. The goal is to make the network faster and better.
There are eight teams working on Ethereum 2.0 worldwide. Their goal is to make the network better and faster by tackling the following issues:
One of the long-term goals is to switch from proof of work to proof of stake. That goes step by step.
- Triple division: the reward for miners is reduced by two-thirds.
- The difficulty bomb is then implemented in a subsequent update. The "difficulty bomb" ensures that mining on the ethereum network becomes more difficult. This means that the calculations to be solved become more complex.
- This bomb clears the way for Proof of Stake. In addition, the miner who finds the block is not rewarded based on the work delivered, but based on how large their stake is. In other words, how many coins they have.
All these improvements are included in various updates. The Ethereum project is divided into five phases: Olympic, Frontier, Homestead, Metropolis and Serenity. Metropolis is then subdivided into Byzantium and Constantinople. Byzantium was introduced on October 16, 2017, Constantinople at the start of this year.
- Olympic, 9 May 2015: Testing the overall network. Developers, data providers, exchanges and users are rewarded for developing and deploying on the test network.
- Frontier, July 30, 2015: Developers and companies were given the opportunity to test the network in real-life applications.
- Homestead, February 29, 2016: Ethereum from beta phase: first full release.
- Byzantium (part of Metropolis), 16 October 2017: faster transactions, improved network security, smart contracts prepared for business transactions
- Constantinople (part of Metropolis), February 28, 2019: reduce miner reward.
- Serenity, date unknown, Ethereum switches from Proof of Work to Proof of Stake
There’s a lot planned for Ethereum this year. The big man behind the network is called Vitalik Buterin, he is very active on Twitter. Would you like to stay informed about everything Ethereum? Follow him online!