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Ethereum Valuation

Once The Cryptocurrency Bubble Bursts, There May Be Real Innovation And A Solid Valuation Case For Many Coins

Once The Cryptocurrency Bubble Bursts, There May Be Real Innovation And A Solid Valuation Case For Many Coins

Take a look at Ethereum . The company bills itself as a blockchain platform for others to build apps on. Blockchain is the underlying technology behind bitcoin and acts as a decentralized ledger of transactions. But its uses span far beyond bitcoin. Ethereum has its own blockchain which companies like Microsoft and J.P. Morgan are experimenting with. Ethereum is specifically designed for so-called "smart contracts" which are pieces of software that execute a contract once certain conditions are met by all parties involved. This removes the need for complex paperwork and errors. Ripple is another blockchain company that is working on cross-border payments across different currencies in seconds. The digital coin created by the company called XRP, acts as a bridging currency to help facilitate transactions. Both Ethereum and Ripple have seen stunning rallies this year, but both are in the early stages of their experiments. But in the future, valuing them could be easier. For example, if Ripple began to process a fraction of the trillions of dollars that is transacted across borders, we could start to put a price on one XRP. If Ethereum was responsible for a number of trade finance deals, we could use a similar valuation metric. Of course, this is all very simplistic, and the biggest risk is that people lose belief in these platforms and cryptocurrencies. They are also in danger of being replaced by something better. Cryptocurrencies or digital tokens are here to stay but it's unlikely they'll survive in their current form. One big plus of this current bubble bursting however could be that we get some real innovation across a number of industries, with valuations a little clearer to understand. For more insight from CNBC contributors, follow @CNBCopinion on Twitter. WATCH: Continue reading >>

What's Ether Worth? A Probabilistic Valuation

What's Ether Worth? A Probabilistic Valuation

Is Ether worth $260+? Should I recommend it as an investment to friends at its current price?These are the questions that have been nagging at me after watching Ether increase 10x in value over the last four months. In March, I first learned about Ethereum. Its coder-friendly smart contracts resonated with me. "This is the next step, a platform for blockchain applications," I murmured during late night research sessions on Epicenter .I emailed tech savvy friends to spread the word. The friendly price helped my recommendations. I told friends to buy Ether (the token underlying the Ethereum blockchain) at $16, $22, $32. I made small, gleeful investments at these prices. My enthusiasm has since been mimicked around the world. The price of Ether broke $50 in April and $200 in May. It now sits at $261, and Ethereums $24 billion market cap is second only to Bitcoins in blockchain. Ethers huge gains are a microcosm. The blockchain space as a whole has experienced a massive influx of capital: from $23 billion in March to $101 billion as of this writing. A broad cross section of the world is excited about the disruption and new capabilities blockchain will create. Before we answer those questions, a little housekeeping. This analysis assumes a basic understanding of blockchain technology, and this IBM article can help. And some Ethereum basics. Ethereum is a distributed protocol (set of software code) running on computers all over the world. Applications running on Ethereum pay gas in Ether to use the platform. For more, read Fred Ehrsam s explanationofwhy Ethereum is the the leading digital asset. It's important to understand that blockchain protocols are a new beast. These assets provide value and have use cases different from gold, fiat currencies, and stocks. Bitcoin has co Continue reading >>

8 Answers - Why Does Ether (ethereum) Have Value? - Quora

8 Answers - Why Does Ether (ethereum) Have Value? - Quora

What could be a good reason to start investing before 2018? ETFmatic offers free investing accounts until April 2018 if you fund your account before December 31! Originally Answered: What factors will determine the value of ether and ethereum? Like Bitcoin, the fiat value of ETH is determined by those who buy and sell it alone. The currency is used to pay for smart contracts within the Ethereum network, so one might say that Ether tokens are backed by the value that these smart contracts provide. So far (June 2016), nearly all value is speculative as smart contracts have not yet found a killer app. WePower - blockchain based green energy trading network. WePower token is backed by green energy. Token grows with platform expansion. Backed by biggest funds. Originally Answered: How do we value something like Ethereum? How do we value things in general? Intersubjective value theory holds that you probably factor in predictions. Predictions on what your future will look like with or without the trade, predictions what others will think your future will look like with or without the trade, predictions on what the future of others might look like if they made the trade or didnt. Heuristically, you look at what everybody else is giving up (price) compared to your opportunity costs (costs). Value comes from evaluations between things, in addition to evaluation of others between these things, not the thing itself. Continue reading >>

Ripple Price Falls: Ethereum Now Second Most Valuable Cryptocurrency | Fortune

Ripple Price Falls: Ethereum Now Second Most Valuable Cryptocurrency | Fortune

Its been a fierce battle for silver in the cryptocurrency world in recent days. On Monday, Ethereum regained the title of second most valuable cryptoccurency after rival asset Ripple held its ground for roughly a week. Ripple prices fell roughly 25% Monday to $2.50, leading a broader sell-off in the cryptocurrency markets. Bitcoin values also fell roughly 7.6% to $15,000, while Ethereum prices rose slightly, 2.5% to $1,155 . That pushed Ripples market capitalization down to $98.5 billion, and lifted Ethereums value to $111.9 billion, according to data firm CoinMarketCap . Bitcoin, meanwhile, maintains its top spot with a valuation of $255.1 billion. It was a hodge podge of news Monday that helped shape those shifting dynamics. For one, reports have emerged that the Chinese government , home to the worlds largest Bitcoin mining operation, would push for an orderly exit from the cryptocurrency mining business, Quartz reported . Then, CoinMarketCap, a major source of information in the crypto world, decided to remove data from South Korean exchanges in its calculation of asset prices. Since cryptocurrency generally trades higher in South Korea, the removal looked like a sudden across-the-board sell offtriggering panicked selling from investors who were not immediately made aware of the change. First, it was due to capital flows with investors realizing their profits from cryptocurrencies, said Iqbal Gandham, Managing Director at cryptocurrency brokerage eToro in an email to Fortune. Secondly, a data adjustment by CoinMarketCap, the most popular site for cryptocurrency pricing data, removed South Korean exchanges from its site, which have been known to trade much higher than the rest of the world. This morning we excluded some Korean exchanges in price calculations due to Continue reading >>

Ethereum Reclaims Its Spot As The Second Highest Valued Cryptocurrency

Ethereum Reclaims Its Spot As The Second Highest Valued Cryptocurrency

Ethereum Reclaims Its Spot as the Second Highest Valued Cryptocurrency Ether resumed its place as second largest blockchain by total valuation. But is that enough to remedy the growing issues with the token? After over a week of Ripple controlling the crypto-news headlines, ether is back to making waves. Ether finally resumed its spot as the second-largest blockchain in total value. At the time of this writing, current valuation sits at $1,191.02 for Ethereum. Just days ago, Ripple's XRP managed to best ether. The return to 'prominence' for ether might be encouraging to some investors, but others have noted a slew of technical problems that not even rising values can fix. Most of these issues get discussed throughout internal dev channels, according to CoinDesk's reports . However, the issues could be closely tied to basic blockchain functions. A recent example comes in a software glitch used to figure out how much a transaction should cost to send. It's called the "gas oracle," and it's led to huge inflation of user fees. And by huge, some of Ethereum's algorithms have forced users to overpay for transactions by nearly 70 percent at times. One of Ethereum's developers even told CoinDesk "something odd has been happening with the estimated gas price." "While it's still possible to transact on the network at a fairly low price, the oracle started returning increasingly high estimates," said developer Nick Johnson to CoinDesk . These tech issues are also plaguing Ethereum's future projects, as insiders noted. Casper, the ecologically-friendly attempt for cryptocurrencies, is currently splitting into "incompatible forks," according to CoinDesk . And the issues don't just weigh in the minds of investors. Some of cryptocurrency's biggest leaders also struggle with the often Continue reading >>

Ethereum And The Rise Of The Price Of An Ether

Ethereum And The Rise Of The Price Of An Ether

Ethereum And The Rise Of The Price Of An Ether {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe The Ethereum virtual currency logo is displayed on an automated teller machine (ATM) at the Coin Trader bitcoin retail store in Tokyo, Japan, on Wednesday, Aug. 30, 2017. The value of Ethereums currrency is increasing alongside Bitcoin and Litecoin, and the price of one Ether is currently at a high of $625.25 USD, according to CoinMarketCap, despite the CryptoKitties drama. 2018 will welcome a range of regulatory requirements and financial institutions are launching new products on the blockchain in order to simplify compliance, and this is where the Ethereum blockchain is becoming increasingly popular. A project named the Massive Autonomous Distributed Reconciliation program (Madrec) was announced this week and will be led by UBS with involvement from Barclays, Credit Suisse, KBC, SIX and Thomson Reuters. For a while now, financial news has been dispersed with updates of how banks are experimenting with cryptocurrencies and this announcement is one of the most recent, after Bitcoin futures began trading. Unlike Bitcoin, however, Ethereum has always been spoken about in a more positive way and has become the second largest digital currency in two years. After being launched in 2015, the value of Ethereums currency, otherwise known as Ether, has increased by more than 6,800% since the start of the year, according to The Telegraph. With Ether being the third most valuable digital currency and the virtual currency with the Continue reading >>

How To Value Cryptocurrencies (including Bitcoin, Ethereum, Etc)

How To Value Cryptocurrencies (including Bitcoin, Ethereum, Etc)

How to Value Cryptocurrencies (including Bitcoin, Ethereum, etc) Cryptocurrencies are one of todays hottest asset classes to invest in. Bitcoin in particular has soared in price from pennies to thousands of dollars per unit in just a few years. But is it all a bubble, like the Dotcom era or tulip mania ? Or is this just the start of something bigger, or even revolutionary? I dont have the answers to those questions, but this article will provide a framework to help you think about how to value cryptocurrencies for yourself, including explaining a lot of the risks involved. Start here from the beginning or jump to the section you want: How to Value Bitcoin & Other Cryptocurrency Cryptocurrencies 101: A Blockchain Overview Bitcoin, the first cryptocurrency, was invented by an anonymous person or group named Satoshi Nakamoto and released publicly online in 2009 as open-source software and a white paper that explains the concept. Satoshi claimed to be a Japanese man in his thirties, but his identity has never been verified because all of his communication was via the Internet. He wrote with influences of British English, and had sleep/wake cycles according to his online activity that would presumably place him in North America, leading many to believe that hes not actually Japanese. Or maybe hes multi-ethnic. It might not even be a man. It could conceivably be a woman or a group of people. But most likely its a man using a pseudonym. And wherever he is, he has about a million bitcoins, worth billions of dollars now, which he has never spent. And he has gone dark; after having invented the concept, he no longer leads it and his whereabouts and identity are unknown. Anyway, Bitcoin was invented for the purpose of being a decentralized currency and method of payment. It does Continue reading >>

Valuing Bitcoin And Ethereum With Metcalfes Law

Valuing Bitcoin And Ethereum With Metcalfes Law

Valuing Bitcoin and Ethereum with Metcalfes Law Bob Metcalfes 1972 sketch of his vision for the original ethernet. Credit:PARC. Keywords: valuation, metcalfes law, NVT, PMR, bitcoin, ethereum Data sources: etherscan.io , blockchain.info , coinmetrics.io current to Feb 9/10 (BTC/ETH) of 2018 Here we report that Metcalfes Law, and similar laws, nearly perfectly correlate with ETH and BTCs USD price This suggests that cryptoassets that have reached critical mass behave like online social networks such as Facebook with their value defined by their usage (as measured by daily transactions or active addresses) We examine the Network Value-to-Transactions (NVT) ratio a popular metric for potentially identifying when the USD price of a cryptoasset has exceeded or fallen below the value suggested by its underlying daily USD transaction volume We propose a similar formula the Price-to-Metcalfe Ratio (PMR) and propose that it may have some advantages over NVT; however, we recognize that more research is needed before an optimal PMR is determined Note: an earlier version of this article incorrectly stated the formula for Metcalfes Law as M^(1.5). This was a typo in the formula only. M was used for all calculations denoted as M. In the 1980s, Robert Metcalfe, the inventor of Ethernet, proposed a formula: the value of a telecommunications network is is proportional to the square of the number of connected users of the system (n) Since its inception, Metcalfes Law (M) as it is now known, has become an influential formula for studying network effects and valuing online networks. In 2015, Zhang et al . found that Facebooks revenue a proxy for its value was proportional to the square of its monthly active users (MAU). In fact, M best fit Facebooks value when compared with other similar Continue reading >>

Ethereum (eth) Could Hit $10,000 And Above In The Future

Ethereum (eth) Could Hit $10,000 And Above In The Future

Ethereum (ETH) could hit $10,000 and above in the future! Ethereum (ETH) had a pretty good run in 2017, pushing up from less than $10 to over $1000 in early January 2018. And even after the recent drop in crypto prices, ETH seems to be the only crypto that has held its value, falling by a lower margin than the rest. But for a new investor, It is a conundrum. Thats because many cant tell whether its still a good investment, or whether the Ethereum boat sailed long ago. Well, the answer is simple, its still early days for ETH. In fact, a valuation of over $10,000 for Ethereum is not improbable in the long-run. Heres is why. Unlike bitcoin and other cryptos out there, Ethereum (ETH) has more than just speculative value. It is designed to allow developers create applications that can have a real-world use. Anyone who has some programming knowledge, and a good idea can create something of value on the Ethereum platform. This aspect of ETH has played a key role in pushing up its value to over $1000. Now imagine what will happen once Ethereum gets true mass adoption. Its demand will be so high that even a valuation of $10,000 could be an understatement. Basically, Ethereum is still at the early adoption stages, which makes it a high growth investment, even for investors who come in, at current prices. If you have ever invested in the stock markets, then you know that one of the secrets to success is investing in a company that has a visionary leadership team behind it. Apple under the leadership of Steve Jobs and his team is testament to this. However, this rule of thumb is not just restricted to the stock markets, it also applies to crypto currencies. The developer team behind a crypto is a critical indicator of its long-term growth or failure. And on this front, Ethereum (E Continue reading >>

Ethereum: The No. 2 Cryptocurrency Is Like The Currency Of An Innovative Country

Ethereum: The No. 2 Cryptocurrency Is Like The Currency Of An Innovative Country

Ethereum: The No. 2 Cryptocurrency Is Like The Currency Of An Innovative Country This article is an introduction to the Ethereum framework, and its cryptocurrency Ether, for beginners. Ethereum substantially differs from Bitcoin due to its much broader use case, being essentially a platform to execute smart contracts. It is therefore also a play on blockchain in general and on the internet of things. Being the no. 2 cryptocurrency by market capitalization, it is certain to be included in passive cryptocurrency products soon to be launched, generating incremental demand. While it is a long-term play, interested investors may therefore want to start building positions now. Virtually everybody not living under a rock is by now aware of the existence of Bitcoin (BTC), the biggest cryptocurrency, with US$100 billion total market value as of the time of this writing, although probably a majority of people has no deep understanding of what it is and how it works, as evidenced by remarks such as those recently made by the CEO of a major global bank . The set of people familiar with Ether, the No. 2 cryptocurrency by value (currently US28 billion), will be significantly smaller, with even fewer people understanding its workings, specifically the Ethereum framework of which it is a vital part. This article sets out to provide a brief overview of Ethereum, including discussion of a potential valuation framework. Based on the underlying fundamental attractiveness of Ether as well as the fact that its inclusion in soon-to-come passive cryptocurrency investment products is virtually guaranteed by its no. 2 status by market capitalization, investors may well consider starting to accumulate a position. Like Bitcoin, Ether is essentially a digital asset that lives as a credit position Continue reading >>

Etherum Price | Eth Usd | Chart | Etherum Us-dollar | Markets Insider

Etherum Price | Eth Usd | Chart | Etherum Us-dollar | Markets Insider

Just when you thought you had your head around bitcoin, along comes Ethereum. The word has been in a lot of headlines as the cryptocurrency world's new favorite thing soared in value. The ethereum price of something called an ether token grew in value up over 3,000% from 2016 - 2017. Bitcoin, which is far more widely known as an alternative 'currency', is up about 141% in that same time. But what exactly are ether tokens and Ethereum? And how is it different than bitcoin? We've broken it down for you. The reason you've been hearing about bitcoin for years, but Ethereum only recently, is that the latter was only developed two years ago while bitcoin's been around for almost eight years. Ethereum was created by Vitalik Buterin, a young programmer who was told about bitcoin by his father and decided to create a platform for smart contracts; which bitcoin is not designed to do. The Moscow native began working on Ethereum after he dropped out of college, according to CNBC. Ether tokens and bitcoin are called cryptocurrencies because they can be only be bought and sold digitally, are used to pay for things (including pre-school tuition), and because they fall outside of the control of central banks and other government entities that might control a national currency. They're built on a technology called blockchain. That's a kind of ledger that records and verifies transactions made on it. All transactions made on these so-called decentralized networks are public and not controlled by one governing entity. Lately, the idea that both sides of a party say two banks that buy and sell shares from each other can get an accurate and verifiable record of the transaction instantly, has gripped Wall Street and other institutions as something that can be used in lots of ways. There are Continue reading >>

Valuation Paradigms: How Do Ethereum, Bitcoin And Litecoin Compare?

Valuation Paradigms: How Do Ethereum, Bitcoin And Litecoin Compare?

Which is better, to invest in bitcoin or ethereum and litecoins? I wanted to expand on this answer and give you a few paradigms when thinking about how to value popular cryptocurrencies. Each paradigm comes with a different perspective and, ultimately, a different recommended investing strategy. Before I get into that, Ill briefly discuss the history of the three cryptocurrencies in this post. Background: Recent History of Blockchains Skip to the next section if youre already familiar with these blockchains. Bitcoin was the original cryptocurrency blockchain, creatingthe entire industry we are talking about. It was released in 2008 and has the most marketing power behind it. Despite the ecosystem growing widely, Bitcoin is still the most recognized and widely used brand in the industry. Litecoin was an early altcoin created to improve on Bitcoin. These improvements were rather minor, and didnt deviate too much from what Bitcoin already offered. For the longest time, Litecoin was considered the silver to Bitcoins gold. Recently, Litecoin has made significant headway by implemented a protocol known as Segwit , which Bitcoin has struggled to implement in their chain. Ethereum was a completely new blockchain architecture, different from Bitcoin and other competitors. They included the Ethereum Virtual Machine in their nodes, which processes complex smart contracts and allows for newapplications. Ethereum has opened itself up to become the primary platform to delivering decentralized services of all kinds. There is no rightanswer on how to value each blockchain. Instead Ill give you a couple of lenses you can view this industry through and the value implications they have. One way you could understand the value of these currencies is by tying their value to their future use Continue reading >>

I Created A Valuation Model For Ethereum (eth) : Cryptocurrency

I Created A Valuation Model For Ethereum (eth) : Cryptocurrency

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Ethereum Price Achieves All-time High At $752, Up 20% In 24 Hours

Ethereum Price Achieves All-time High At $752, Up 20% In 24 Hours

Ethereum Price Achieves All-Time High at $752, Up 20% in 24 Hours Join our community of 10 000 traders on Hacked.com for just $39 per month. The Ethereum price has surpassed $752 for the first time in history, recording a staggering 20 percent increase in value over the past 24 hours, led by the US market. Throughout the past few days, the US market accounted for nearly 25 percent of global Ether trades. GDAX, the flagship cryptocurrency exchange of Coinbase, and Bitfinex processed 23 percent of the global Ethereum exchange markets Ether trades. Currently, the daily trading volume of Ether is close to $5 billion, more than four times larger than Bitcoin Cash, the third largest cryptocurrency in the global market behind bitcoin and Ethereum. Earlier this month, billionaire investor Mike Novogratz predicted the price of Ether to increase by three-fold throughout 2018. In terms of developer activity and transaction volume, Ethereum remains as the only public blockchain network which can compete against bitcoin. In fact, as of current, the Ethereum blockchain network processes more transactions than all of the cryptocurrencies in the market including bitcoin combined at 820,000 transactions per day. Decentralized applications such as CryptoKitties and EtherDelta have also demonstrated the potential of Ethereum as the base protocol for decentralized exchanges and digital asset trading platforms, which is an application that is useful beyond finance. As A16Z partner and Earn.com CEO balaji Srinivasan stated, Why is CryptoKitties actually important? Its one of the first examples of what people have been talking about for years: frictionless international trading of digital assets (not just cash!) on a blockchain. Already, CryptoKitties has processed $15 million worth of digit Continue reading >>

Why The Price Of Ethereum Has Risen By 5,700% During 2017

Why The Price Of Ethereum Has Risen By 5,700% During 2017

Why The Price Of Ethereum Has Risen by 5,700% During 2017 The price of the Ethereum networks native token, Ether has risen by over 5,700 percent in 2017. The market valuation of Ethereum recorded a 64-fold increase from $700 million to $45 billion, officially becoming the best performing cryptocurrency in the market year-to-date. Billionaire hedge fund investor and former Fortress executive Mike Novogratz expressed his optimism in regards to the short and mid-term price trend of Ether, stating that Ether is at an optimal position to lead strong rallies and sustain upward momentum. Just in the last few days ethereum has started to move, and I actually think its going to put a new high soon. I think we end the year at close to $500 in Ethereum, said Novogratz. Several analysts believe that the Ethereum market cap has risen mostly due to the exponential growth of the initial coin offering (ICO) market. By the end of 2017, ICOs are expected to have raised a total of $3 billion, given that more than $2.8 billion has been secured by ICO projects throughout the past 11 months. But, another reason for Ethereums rise this year is the increasing amount of activity from Ethereum developers who work on implementing new technologiesto improve the network. One notable project is thelatest Byzantium hard fork which saw the integration of Zcashs ZK-SNARKs, effectively enabling private or anonymous transactions to be processed on the Ethereum network. Currently, it is not possible for commercial decentralized applications to settle anonymous transactions on the Ethereum network. But, the Ethereum development community has made significant progress with the technology, given that a confidential ZK-SNARKs transaction has been processed on the Ethereum testnet. In a study released in July Continue reading >>

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