Altcoins

Analyst: Ethereum Price Decline Was Expected, Flawed Argument

John McMahon | April 16, 2018 | 7:00 am
ethereum
Altcoins

Analyst: Ethereum Price Decline Was Expected, Flawed Argument

John McMahon | April 16, 2018 | 7:00 am

A new industry report predicts big gains for Bitcoin Cash matched by like declines in Ethereum as 2018 moves through late spring.

Report Expects BCH to Reach $2000 by May

The report titled Cryptocurrencies: Past, Present, and Future in which researchers claim to have used a combination of historical data and a “data-driven algorithm” has resulted in some very optimistic predictions for the near future of Bitcoin Cash while calling for grim times ahead for Ethereum, saying it “will plummet by more than $237 per unit in the next month or so.” as reported by the Express.

2018 has been a rough start for cryptocurrencies across the board as the market feels the repercussions from the success and fears generated by the dramatic rise and fall in prices at the cusp of the new year. Confusion over regulation and warnings that the cryptomarket is an empty bubble have taken their toll on all of the top trading tokens but Ethereum may have suffered the most having lost around 70% of its value since it’s high mark of $1,338.67 in December.

Callum Blanchard a cryptocurrency data specialist for Cryptocurrency: Past, Present, and Future told the UK’s Express newspaper that he wasn’t surprised by the findings saying that though Ether had been one of Bitcoin’s main competitors because of its ability to allow blocks to be created quicker, investors today are looking for more unique features than ever.

Ethereum originally stood out for allowing ‘blocks’ to be created quicker, but compare that to the likes of Bitcoin Cash, or even for transaction speed – Ripple and Litecoin – and suddenly even that isn’t so unique anymore.

Bitcoin Cash and Ethereum Serve Different Purposes

What Mr. Blanchard doesn’t consider is that Bitcoin Cash and Ethereum were developed for very different purposes and that comparing them is apples to oranges. While both cryptocurrencies are based on the principle of distributed ledgers and cryptography they use different programming languages, have different block times and use different builds.

More to the point while Bitcoin Cash was created to increase the transaction speed of its predecessor, Bitcoin, so that it could be more readily used as a substitute for cash, ETH was developed as a vehicle to facilitate peer to peer contracts and applications on the Ethereum platform. The main purpose of Ether is not to act as a payment alternative but to enable developers to build and run distributed applications (dApps).

An argument that the success of Bitcoin Cash leads to the continued decline of Ether is a specious comparison even if the two compete for investors in the same market. While those interested in investing in the future of Ethereum will be looking at what unique services are developing for the platform, those buying BCH are looking for a currency that can be used not only to store value but that can be used to buy a cup of coffee as well.

 

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  • Niles Casey

    Specitious argument indeed. And why hype Bitcoin Cash when you have Ripple and Monero for transactions. Ethereum for smart contracts.

  • Niles Casey

    Specious argument indeed. And why hype Bitcoin Cash when you have Ripple and Monero for transactions. Ethereum for smart contracts

    • Evgeni Grinberg

      Its like these “experts” literally dont understand what is being discussed AT ALL

  • YOgly

    what a crap, seriously “Ether had been one of Bitcoin’s main competitors because of its ability to allow blocks to be created quicker”
    it’s not about quicker blocks, it about programmable blocks.

    • Evgeni Grinberg

      I know right, its like these “researches” and specialists know ABSOLUTELY NOTHING about what they are talking about. The article is called Cryptocurrencies: Past, Present, and Future, but they are comparing Ethers Validity as a PAYMENT METHOD to bitcoin cash? Absolute retards

  • Magnum McMillan

    Oh yeah, go ahead and buy a cup of coffee, spend some every day, fools.

    Just remember to itemize every crypto transaction for capital gain taxes. You’ll need to choose and stick to an accounting method such as FIFO. Then every year, report every cup of coffee and all the numbers gotta match up or else you could get gigged. Depending on your volume, you may even pay estimated tax quarterly. This is the law in US.

    Paying cash for your cups of coffee avoids capital gains tax. Paying cash means you don’t have to report a damn thing. Paying cash is simple and stealthy.

    These self-serving folks promoting coffee spends are only trying to stop the hemorrhaging as bch stays sunk below 1000. They don’t care if some fool gets gigged.

    The prediction for May bcash is a dog whistle, a subtle cue for the coordinated pump actors. Centralized cryptos such as bcash are like playing with loaded dice, which are controlled by a few who print the coin and run the casino. RICO Time!

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