The cryptocurrency industry is swelling, nearing a market capitalization of $100 billion. Better than many international companies and even the GDP of some countries as awareness hits new levels.
The Crypto Bubble
In 2017, crypto was labelled as the bubble of the year and in 2018, we are in the pit of that crash. Probably not the bottom of the pit but are definitely settling there and altcoins are reaching there faster.
To me, just like the dotcom produced a series of start-up firms with no definite business at all and big estimates, the same applies to digital currencies and tokens. The crypto market comprises a mountain of refuse just like Nasdaq did in 1999 and like the litter loans wrapped up in the extravagant asset financial institution offshoots of the credit crisis in 2008.
That is how a bubble is run, money hunting for trash. Eventually, the blowtorch of reality takes control and after the fire, it is only the real deals that remain standing.
Back to Ethereum
My hopes of obtaining some free Bitcoins are still ripe since the market believes BTC is still cheap. The answer will be known before the year ends. Currently, I am in the mode of gaining more BTC since it is exhibiting its dominance.
Ethereum may crash to less than $100 before the year ends. Mind you, I also own some ETH coins. Below is a chart depicting of what is likely to transpire.
The main challenge for Ethereum is that many investors obtained the currency by auctioning their pipe dreams in ICOs.
There exist several sets of outfits affluent in ETH but spending in fiat, which is covered in sales of ETH. Their cash flow must be out of ETH into fiat. Ethereum was the cryptocurrency they received their payment in and it is decaying fast, no functional start-up can hold onto it when they ought to pay cater for their needs in fiat currency.
This is what is currently driving the downward trend of Ethereum and the reversal time for this trend is unknown.
Nevertheless, this downward trend can reverse and probably, during the next generation of ICOs where people will be using ETH to purchase tokens.