news Ethereum’s Rise is Speculative While Bitcoin’s Price Is Based on Fundamentals

[kyoukage01 3181]

Both Bitcoin and Ethereum have their prices soaring over these recent days, with 1 BTC currently priced at $11,633 while 1 ETH is at $381 as of this writing. But while BTC certainly has it price steadily rising as a result of its recent halving event, ETH is being viewed in the article linked below as only speculative, with its price increasing likely due to the DeFi application which some might view as having drawbacks.

 

The article therefore insinuates that it will be safer to invest in BTC for a longer term rather than ETH. But if ETH can prove that its rise is no mere speculation and can hold out until its version 2.0 is released somewhere in the future, traders will be able to exploit this to their advantage.

 

Do you agree with the article and its implications? Or can it be proven wrong? And knowing this information, what will be your trading strategy with these two crypto coins now, assuming you are dealing with both?

 

Spoiler

Bloomberg: Ethereum’s Rise is Speculative While Bitcoin’s Price Is Based on Fundamentals

Michael Kapilkov

 

 

Bloomberg finds Ethreum’s bull run to be speculative while contending that Bitcoin’s appreciation is driven by fundamentals. In its August crypto outlook, Bloomberg remained unimpressed with Ethereum, calling its rally “speculative”. The publication contends, however, that Bitcoin’s (BTC) rise is based on solid ground:

“Ethereum has extended last year's highs and leaped to one of the top-performing major crypto assets in 2020, but we view its rally as more speculative vs. the favorable demand vs. supply conditions supporting Bitcoin.”

Ethereum’s competition

The report points out that Ethereum faces “plenty of competition from similar crypto platforms and about 6,000 tradable coins.” On the other hand, Bloomberg has remained consistently bullish about Bitcoin, noting its gold-like qualities and increased institutional demand.

 

The success of the DeFi space has led to the appreciation of Ether, with some comparing it to the ICO boom. As more smart contract platforms mature, competition will only get tougher. When it comes to the world of professional investors, Ether does not have a clear selling point like Bitcoin’s limited supply.

source: https://cointelegraph.com/news/bloomberg-ethereums-rise-is-speculative-while-bitcoins-price-is-based-on-fundamentals

 

additional information: https://www.publish0x.com/zenthereum/ethereum-10-an-obituary-xolrlrq

 

Edited August 8, 2020 by kyoukage01

[BTC Future 3946]

Thanks for the mention @kyoukage01! 

Ethereum is about DeFi and ETH 2.0 preparations right now. It managed to go up to $400 because Bitcoin also broke the 10k resistance. I don't know if Ethereum will be able to keep going and I didn't expect it to reach this high either. The network is clogged for four months now and transactions demand $1-5 to perform making it useless for anything else besides DeFi. Even for DeFi it means that someone planning to invest $100 will probably waste all of his yield profit in fees and perhaps pay more as these protocols are decentralized and most actions demand exchange fees as in Uniswap. DeFi is about big whales of ERC20 tokens.

Gaming is officially dead in Ethereum and same DApps, gambling apps and other platforms. ERC20 token projects, and Ethereum ICO's also suffer. Platforms that use Ethereum for payments delay them and try to make them in weekly batches to reduce fees. Having seen this happening before it means to me that Ethereum is just about speculation right now and its price does not reflect real valuation.

 

[Whited35 15285]

5 hours ago, kyoukage01 said:

Do you agree with the article and its implications? Or can it be proven wrong? And knowing this information, what will be your trading strategy with these two crypto coins now, assuming you are dealing with both?

@kyoukage01All these questions make the sense here so for this point, I appreciate your effort. I agree with this article because I still do not think like both Ethereum blockchain network based DeFi platforms and ETH itself has gone for mainstream adoption trend in this world. Ponzi schemes like Forsage was a major key to cause Ethereum Network clogged and we have been noticing high network fee because registration procedures is very expensive on such platform. This sudden DeFi craze is another cause to give a massive surge in price of ETH which is not sustainable because once these both ponzi schemes and DeFi craze is over, I think there will be a sharp price decimation for ETH in the cryptocurrency markets.

But, in the case of Bitcoin, last time there was a record high realized price. You might refer this topic that I created yesterday.It suggests, Bitcoin's circulating supply is finding its way to the smaller BTC holders' wallets which is a clear indication that Bitcoin demands is increasing after 3rd halving event(It was done to create a steady supply of Bitcoin) and find fresh money from investors so price raise for Bitcoin is very significant in this case. 

As you ask my trading strategy, I love to HODL a bigger portion of  both ETH and BTC from my investment portfolio for a long-term purpose. But for an active day trading, some amounts are being sold or bought according to price volatility in the markets.  

[Moaz 7239]

I think that the rise in the price of Ethereum in the recent period is not just a guess, and it will continue to rise until the launch of the Ethereum 2.0 network, as for my trading strategy is to keep Bitcoin and Ethereum now and not sell it pending the end of the year because it is likely that the Bitcoin and Ethereum prices will rise significantly

[kyoukage01 3181]

19 hours ago, BTC Future said:

Thanks for the mention @kyoukage01! 

You're welcome. I find it as a helpful use-case for ETH since we already have more information on BTC available in this forum.

19 hours ago, BTC Future said:

Ethereum is about DeFi and ETH 2.0 preparations right now.

In between the DeFi, ETH 2.0, the recent 51% attack on the network (twice!), and the sinking global economy, I'd reckon that it will be a chaotic last quarter for ETH this year. We'll see in the following months what will be the fate of ETH 1.0 in its 'last days' before it switches to a newer version.

20 hours ago, BTC Future said:

Gaming is officially dead in Ethereum and same DApps, gambling apps and other platforms. ERC20 token projects, and Ethereum ICO's also suffer. Platforms that use Ethereum for payments delay them and try to make them in weekly batches to reduce fees. Having seen this happening before it means to me that Ethereum is just about speculation right now and its price does not reflect real valuation.

And here I am trying to convince my friends to play blockchain-based games as a way to raise awareness about crypto, if only for a little bit *sigh*. Thanks for the heads-up. Your mention about the ERC20 tokens is also something to worry about. What was that bit the moderator said about the TALK tokens?

Spoiler

On 6/18/2020 at 6:07 PM, Desais said:

At the moment, I don't have exact information, but yes, most likely it will be on ERC20, the exact number of tokens and all the information will be later. Don't worry about the token dump as it will sell various services, advertising, upgrades, and so on

If the TALK token does is based on ERC20, it is going to affect us members here in some way.

 

17 hours ago, Whited35 said:

I agree with this article because I still do not think like both Ethereum blockchain network based DeFi platforms and ETH itself has gone for mainstream adoption trend in this world. Ponzi schemes like Forsage was a major key to cause Ethereum Network clogged and we have been noticing high network fee because registration procedures is very expensive on such platform. This sudden DeFi craze is another cause to give a massive surge in price of ETH which is not sustainable because once these both ponzi schemes and DeFi craze is over, I think there will be a sharp price decimation for ETH in the cryptocurrency markets.

My knowledge about ETH is still somewhat limited, so excuse me for the following comment. Does Ethereum suffers from chronic Ponzi schemes? And how come ETH stays at #2 despite those? The 'DeFi craze', when compared to other crazes, hypes and fads, may also prove to be a valid point, analogous to the BTC bubble burst after the 2017 bullrun.

 

15 hours ago, Moaz said:

I think that the rise in the price of Ethereum in the recent period is not just a guess, and it will continue to rise until the launch of the Ethereum 2.0 network, as for my trading strategy is to keep Bitcoin and Ethereum now and not sell it pending the end of the year because it is likely that the Bitcoin and Ethereum prices will rise significantly

At least the recent 51% attacks on Ethereum Classic has barely made a dent on crypto users' trust in the coin, at least the way I see it. But if the current ETH continues to be riddled with issues like these, those views might change. And how do we know whether 2.0 is virtually bug-free? Things would be sad if pre-2.0 ETH prices are at a sky-high only for someone to find and exploit a bug and make the whole ETH market crash.

 

9 hours ago, SilverF said:

The increase in prices in different currencies, involves a social factor, or so I think, in addition to the fact that certain events in the BTC influence, we are living a quarantine in different parts, many were interested in this world, so as a rule of two, it can be alone speculation.

A "social factor" you say? I would like you to elaborate on this if you can.

 

[Raqeebzy 6456]

13 hours ago, kyoukage01 said:

23 hours ago, SilverF said:

 

A "social factor" you say? I would like you to elaborate on this if you can.

I believe it is somewhat related to the massive surge of adoption of DeFi application and various Ponzi and MLM schemes which are built on the ethereum blockchain network. The world economy is hit hard and people see a new solution in Ethereum (mostly termed by them as the new bitcoin). Surely, we do not expect similar network congestion compared to first quarter of the year.

I agree very well with the article and Ethereum investors might see a bearish move when the hype fades. Nevertheless, I cannot disregard it as a good investment.

[koussai999 1986]

I believe that these two currencies are among the strongest currencies throughout history, cryptocurrencies, and I believe that making an investment in these currencies at all times is a safe investment and it is a good investment in the long term

[Cryptonym 54]

On 8/8/2020 at 10:27 AM, kyoukage01 said:

Both Bitcoin and Ethereum have their prices soaring over these recent days, with 1 BTC currently priced at $11,633 while 1 ETH is at $381 as of this writing. But while BTC certainly has it price steadily rising as a result of its recent halving event, ETH is being viewed in the article linked below as only speculative, with its price increasing likely due to the DeFi application which some might view as having drawbacks.

 

The article therefore insinuates that it will be safer to invest in BTC for a longer term rather than ETH. But if ETH can prove that its rise is no mere speculation and can hold out until its version 2.0 is released somewhere in the future, traders will be able to exploit this to their advantage.

 

Do you agree with the article and its implications? Or can it be proven wrong? And knowing this information, what will be your trading strategy with these two crypto coins now, assuming you are dealing with both?

 

  Reveal hidden contents

Bloomberg: Ethereum’s Rise is Speculative While Bitcoin’s Price Is Based on Fundamentals

Michael Kapilkov

 

 

Bloomberg finds Ethreum’s bull run to be speculative while contending that Bitcoin’s appreciation is driven by fundamentals. In its August crypto outlook, Bloomberg remained unimpressed with Ethereum, calling its rally “speculative”. The publication contends, however, that Bitcoin’s (BTC) rise is based on solid ground:

“Ethereum has extended last year's highs and leaped to one of the top-performing major crypto assets in 2020, but we view its rally as more speculative vs. the favorable demand vs. supply conditions supporting Bitcoin.”

Ethereum’s competition

The report points out that Ethereum faces “plenty of competition from similar crypto platforms and about 6,000 tradable coins.” On the other hand, Bloomberg has remained consistently bullish about Bitcoin, noting its gold-like qualities and increased institutional demand.

 

The success of the DeFi space has led to the appreciation of Ether, with some comparing it to the ICO boom. As more smart contract platforms mature, competition will only get tougher. When it comes to the world of professional investors, Ether does not have a clear selling point like Bitcoin’s limited supply.

source: https://cointelegraph.com/news/bloomberg-ethereums-rise-is-speculative-while-bitcoins-price-is-based-on-fundamentals

 

additional information: https://www.publish0x.com/zenthereum/ethereum-10-an-obituary-xolrlrq

 

Every rise and downs of every crypto currency are based on supply and demand factor because it is still tradable and every thing that is tradable is based on that factor.

[BTC Future 3946]

21 hours ago, Cryptonym said:

Every rise and downs of every crypto currency are based on supply and demand factor because it is still tradable and every thing that is tradable is based on that factor.

Supply and demand can be artificial. The Ethereum network is dead and right now it is only the same people that are trying to push DeFi and will eventually get rekt all together. Sick gas prices as these will keep rising for a long time. Total rip-off and totally useless network.

We will have to wait a long time to see something changing. Price of Ethereum might rise but this will be pure speculation and zero utility.

 

Edited August 10, 2020 by BTC Future

[Guru2050 8284]

Well it might be true, one thing I believe on is that both are coins the most valuable coins in Crypto world, one depends on the other. This current rising up in BTC trigger by bull run, is the reason for price changes in ETH.

[MuhammadSh 3067]

I don't think that Eth is dead now as many members said! hope that they can explain more to us about this issue..

In my opinion , the developers of Eth have many good strategies and they are trying to make this cryptocurrencies going forward everyday.. also as many people around the world , i really believe in the future of Eth and i think that it would be able to compete with bitcoin in the near future!

And for me , hodl btc and eth is the best strategy for each one believe in the future of this cryptocurrencies world..

[kyoukage01 3181]

6 hours ago, MuhammadSh said:

I don't think that Eth is dead now as many members said! hope that they can explain more to us about this issue..

Ethereum is not quite dead, yet. What the other members are concerned about is how ETH will hold out this year, as right now it suffers from quite a lot of issues lately. I already provided additional information on this link which I already included on my topic post above, and maybe it will be a good idea for you to ask @BTC Future for further details about it since he is the author of that article.

 

Edited August 12, 2020 by kyoukage01

[BTC Future 3946]

9 hours ago, MuhammadSh said:

I don't think that Eth is dead now as many members said! hope that they can explain more to us about this issue..

The current Ethereum gas fees picture is horrible and perhaps it will be even worse as long as DeFi is making Ethereum completely useless.

 

 

3 hours ago, kyoukage01 said:

and maybe it will be a good idea for you to ask @BTC Future for further details about it since he is the author of that article

Thanks for the mention @kyoukage01!

Edited August 12, 2020 by BTC Future

[Mwangi 5611]

I dont think its speculations , ether has really gained a lot, its been really good time for ether this season but we all have to be careful on what we are doing when it comes to this season of eather , there are so many people who are sceptical of it and that is not the right thing to do so we need to really advance our record right and see what to do 

[kyoukage01 3181]

I found an article posted just yesterday, and it has quite a catchy title indeed.

 

"Ethereum Is Eating Bitcoin". LOL 😆

 

Spoiler

Ethereum Is Eating Bitcoin

Billy Bambrough

 

Ethereum, having long played second fiddle to the number one cryptocurrency, bitcoin, is stepping into the limelight.

 

The ethereum price, climbing more than 10% over the last 24-hour trading period and adding to gains of all almost 300% so far this year, remains far behind the bitcoin price—but price isn't everything with the number of bitcoin tokens "wrapped" into ethereum doubling in August.

 

Bitcoin can be wrapped onto the ethereum blockchain using a number of ethereum-based tokens, such as WBTC, which has surged in popularity since May, according to data from Dune Analytics. During some periods in August, more bitcoin was wrapped onto ethereum than was created by bitcoin miners.

 

Bitcoin wrapped onto the ethereum blockchain using WBTC is backed 1:1 by bitcoin and minted by locking up bitcoin on the bitcoin blockchain. It's thought that by wrapping bitcoin onto ethereum and making it compatible with smart contracts, users will be able to unlock tools such as lending, liquidity provision, and decentralized exchanges.

 

"This presents an interesting quandary for bitcoin. While it clearly has more utility after being converted onto the ethereum blockchain, its underlying value ostensibly comes from the 68 terawatt-hours of power that go into securing the bitcoin blockchain each year," Glassnode analysts wrote in their weekly newsletter.

"How much bitcoin has to migrate onto ethereum before the necessity of the bitcoin blockchain itself starts coming into question," Glassnode asks. "And, if this were to occur, what would back the value of bitcoin if not the massive amounts of energy that go into maintaining its existence?"

 

Meanwhile, the ethereum price is soaring, boosted by the decentralized finance (DeFi) craze that's currently sweeping the bitcoin and crypto world. DeFi is the idea that cryptocurrency technology can be used to recreate traditional financial instruments such as loans and insurance.

 

"Following a challenging number of weeks for many crypto-assets, ethereum’s price increase shows it is one of the main alts leading the market," Simon Peters, bitcoin and crypto analyst at investment platform eToro, said via email.

 

"I agree with Glassnote's reports that bitcoin is no longer investors’ first steps into crypto—many new investors may be entering the market directly into ethereum or DeFi protocols, rather than choosing bitcoin as their first or only crypto investment as they did in the 2017 crypto bull run."

source: https://www.forbes.com/sites/billybambrough/2020/09/01/ethereum-is-eating-bitcoin/#6ecb745a4351

 

I find the article relatable to the topic here somewhat so I posted it here.

 

... ... ...

 

Ethereum's rise because of DeFi goes so fast it's almost scary. Scary to the point where I think caution should be advised before someone should deal with it. Why?

 

First is what Defi really is. I made a topic asking about it and these are what I got so far:

https://cryptotalk.org/topic/109578-what-is-defi/

From what I have learned from the other topic, DeFi is:

On 8/8/2020 at 12:03 PM, BTC Future said:

Right now all DeFi are just dealing with crypto lending services.

DeFi has something to do with lending and borrowing money (crypto in this case). In short, DEBT. DeFi is making people fall into debt traps, and history can provide us with some example of what happens after, if you know where to search. I'll just say that as an historical example, people go into speculations about assets such as colonizing new land, the speculation becomes a craze, a local bank would lend money to support them, and if a lot of people fail to pay their loans, the bank bankrupts, and people who still has a lot of assets in that bank can lose those assets as a result. Hmmm, I might not have gave a better example, but I think you guys get the point.

 

Now, what would happen to ETH if the DeFi bubble has burst somewhere in the future? All those crypto lent and borrowed? The crypto users' trust and confidence in Ethereum itself? Let's hope things won't be as disastrous as I imagine it would be.

 

[rekter 8129]

Both of their prices are based on speculation, Eth is just used way more now. But i guess people are waiting for eth 2.0 but that isn't driving price as much as the defi markets imho.

[TimopheyKa 3900]

In fact, I'm not sure exactly what is driving the price of these two coins. But I can assume that the price of ether largely depends on bitcoin, because as we can see, when bitcoin began to rise in price, ether began to rise after it, and we certainly got quite high prices! What's wrong with that?

[Sugibengi 390]

On 8/8/2020 at 9:27 AM, kyoukage01 said:

Both Bitcoin and Ethereum have their prices soaring over these recent days, with 1 BTC currently priced at $11,633 while 1 ETH is at $381 as of this writing. But while BTC certainly has it price steadily rising as a result of its recent halving event, ETH is being viewed in the article linked below as only speculative, with its price increasing likely due to the DeFi application which some might view as having drawbacks.

 

The article therefore insinuates that it will be safer to invest in BTC for a longer term rather than ETH. But if ETH can prove that its rise is no mere speculation and can hold out until its version 2.0 is released somewhere in the future, traders will be able to exploit this to their advantage.

 

Do you agree with the article and its implications? Or can it be proven wrong? And knowing this information, what will be your trading strategy with these two crypto coins now, assuming you are dealing with both?

 

  Reveal hidden contents

Bloomberg: Ethereum’s Rise is Speculative While Bitcoin’s Price Is Based on Fundamentals

Michael Kapilkov

 

 

Bloomberg finds Ethreum’s bull run to be speculative while contending that Bitcoin’s appreciation is driven by fundamentals. In its August crypto outlook, Bloomberg remained unimpressed with Ethereum, calling its rally “speculative”. The publication contends, however, that Bitcoin’s (BTC) rise is based on solid ground:

“Ethereum has extended last year's highs and leaped to one of the top-performing major crypto assets in 2020, but we view its rally as more speculative vs. the favorable demand vs. supply conditions supporting Bitcoin.”

Ethereum’s competition

The report points out that Ethereum faces “plenty of competition from similar crypto platforms and about 6,000 tradable coins.” On the other hand, Bloomberg has remained consistently bullish about Bitcoin, noting its gold-like qualities and increased institutional demand.

 

The success of the DeFi space has led to the appreciation of Ether, with some comparing it to the ICO boom. As more smart contract platforms mature, competition will only get tougher. When it comes to the world of professional investors, Ether does not have a clear selling point like Bitcoin’s limited supply.

source: https://cointelegraph.com/news/bloomberg-ethereums-rise-is-speculative-while-bitcoins-price-is-based-on-fundamentals

 

additional information: https://www.publish0x.com/zenthereum/ethereum-10-an-obituary-xolrlrq

 

I agree with you, I hope this ETH upgrade is not speculation and will continue in the future. actually I was very surprised that the price of ETH has gone up 3 times from February, I am a little sorry because in February I sold for about $ 150, if I have a little patience I can make a lot more.
Regarding bitcoin, I think it might be affected by the halving and gradually the bitcoin price goes up, but I am still waiting for the highest price increase.

[Maaz sultan 265]

If ETH 2.0 is released then it will definitely reduce the price of ethereum and most of the investors knows that news therefore they avoid investing their investment on eth But if you are short term trader then get the benefits to invest on eth and make profits for short terms .

[Cryptomint 433]

Good analysis friend. And you talked about the new version of the Ethereum so I want to say that after launching that the Ethereum touch the 5000$.

[Captain Karim 0]

I agree with the article, for me I see that investing in Ethereum during the bull market is more profitable than investing in Bitcoin because Ethereum in the recent period is making stronger bullish jumps, but we are supposed to guess the right moment to move to Bitcoin before the king makes his move.

[Shaza Ahmad 1682]

I believe that investing in Bitcoin is an investment that is considered a safe haven in the cryptocurrency market, and Ethereum can be considered a good investment, but not as strong as Bitcoin.

[Rosarvx 965]

the price of Ethereum in the recent period is not just a guess, Ethereum rises every day and it more profitable than investing in Bitcoin

[BrolySSJ 7899]

I would agree to a certain extent that bitcoin is the better investment option in the long term. I think that because bitcoin was the first crypt that was created, the people naturally gravitate towards the use of bitcoin and associating it as the king of all of the crypto, and hence the incredible value that we see for the coin. Ethereum on the other hand, is also good, especially with the introduction of ethereum 2.0, which in my opinion may be a good competitor in the crypto market if it is able to solve all the problems that were being discussed with ethereum. However, i think that ethereum is more geared towards short term investments rather than long term investments. 

[bogdanoff 3173]

We can see that Ethereum moved back and only up again when Bitcoin is rising. It has strong support and it can be a good trade opportunity but Bitcoin and the bullish times are helping Ethereum too. I don't know about long term and I think that Ethereum will not make big prices as some think. It is at $460 today and looks very high price to buy. Bitcoin on the other hand has all the investors buying it. It is more fundamental rise than Ethereum.