Ether at its highest price after Bitcoins falls
The price of Bitcoins fell down last Thursday that proved to a source for an abrupt increase in the price of Ether. Ether is currently the second-largest crypto currency after Bitcoins. The price of Bitcoins was $54,471 last Thursday, but even this small change triggered an increase in the value of Ether that broke all previous records and set a new record of $2800.
The European Investment Bank had recently issued a statement regarding the Ether crypto currency. It had stated that the bank had issued digital bonds on the crypto currency’s Ethereum Blockchain network. This action by the Investment Bank leads to a vast population thinking about the popularity of Ether in the financial institutions. The price of Ether and its use is bound to rise if it gains enough attraction in the financial institutions.
These speculations lead to a flow of buyers into the Ethereum-blockchain network that caused the sudden increase in the value of Ether to its new record price.
The rise in the price of Ether also influenced the trading of other crypto currencies that showed higher trades on Thursday. The price of Bitcoins has seen the top values of nearly $65,000 in the recent year and have increased about 90% in a year’s time span. The growth of Bitcoins was backed by many reasons, including its popularity in major institutions such as Tesla. The CEO of Tesla, Elon Musk, has shown interest in crypto currencies, mainly in Bitcoins and recently in Dogecoin.
Dogecoin is another crypto currency or a token that has been used by Elon Musk in his tweets for some time now. Along with Dogecoin, there are a bunch of new crypto currencies that have been launched on the internet. This abrupt introduction of various crypto currencies on the internet has also been a contributing factor in the downgrading of Bitcoins from its peak value.
A similar case was seen in 2017 during the time of crypto-winter. The value of Bitcoins had fallen to a similar level at that time, along with other crypto currencies. This time, however, the underlying cause of the fall is much different because it is driven by financial institution’s demand in contrast to retail investors.
Alexander, who is a professor at the University of Sussex, stated that Bitcoins is now a reference point to judge the growth or downfall of the overall crypto currencies. In the future, the value of Bitcoins will achieve sustainable levels once again. The main reason behind all this is institutional traction. As time progresses that investors will once again start to invest in Bitcoins that will lead to sustained demand for this crypto currency.
There are also some opposite thoughts regarding Bitcoins. Stephen Issac said that in his thinking, Bitcoins is like a bubble that can burst at any moment. He mentioned that climate change and changes in the regulation might act as the key factors during this process.
Differences in Ethereum and Bitcoins:
These crypto currencies have a lot of differences, and even now, there are a number of changes that have been planned that will cause them to go further from each other. Ethereum operates on a number of software’s that have been built inside the vast Ethereum-Blockchain. Ether is used inside the Ethereum Blockchain as a native token.
In the future, Ethereum is planned to go through a major upgrade that will make the transaction of Ether faster and require less energy while doing so. It will also simplify the process and cause a lower effect on climate change. This upgrade will increase the gap between Bitcoins and Ethereum.
In the financial institutions, due to the future prospects of Ethereum, it has been selected as the go-to option until now, and even in the future, the ether network will benefit from this pick and continue to grow. Institutions have been exposed to the use of Bitcoins for some time now, but now they are increasing their exposure, and Ethereum is the natural next choice.