Will Ethereum become an independent currency

Ethereum is the second most popular digital currency. It has high development prospects, as it is positioned as a decentralized payment system for services. Mining cryptocurrency was very popular, and the price for one broadcast grew rapidly until the end of 2017 and the beginning of 2018. Now many are wondering what will happen to Ether in the future.

A LITTLE ABOUT CURRENCY

Aether is a digital currency developed by Vitaly Buterin. It was introduced to the cryptocurrency market in 2014 and since then mining has continued and is not going to stop. If the development of bitcoin for 2019 and the following years, it almost does not go, then ethereum becomes more and more discussed currency with its features and characteristics.

Digital currency works on a blockchain basis by using smart contracts. The latter is a contract, the execution of which is followed by a special algorithm. As a result, the cryptocurrency is completely decentralized. At the same time, the release of Ethereum is in constant motion, which distinguishes it from bitcoin. For example, in 2017 it amounted to more than 80 million, and by 2018 more than 103 million ETH. This indicator shows the popularity of the Russian digital currency and its demand in the market.

It is also worth noting the rising cost of Ethereum:

At the beginning of 2017, it was no more than $ 10, but for 2019 it is more than $ 150. And this is despite the fact that the cryptocurrency market itself is in decline. For example, the cost of Bitcoin dropped to $ 6500, which was a drop of approximately 65%..

Today Ethereum is more and more interested in investors. This is due to the many programs that Vitaly Buterin announces: starting from the Metrapolis program, ending with Constantinople and Serenity. Each of the programs will develop different areas and research of Ethereum. At the same time, the programs will affect system scaling, application development, improvement of transaction speed, etc. However, this is an uncertain future, as developments require the solution of many problems.

IS THERE A DEPENDENCE OF THE ETHIRIUM ON BITKOIN?

The development and popularity of Bitcoin as the first cryptocurrency loses its influence. This is due to many factors: ranging from problems with mining (its emission is limited), ending with scandals about the purchase of various illegal goods through digital currency. The Ethereum showed itself exclusively from the positive side: in just four years, it achieved enormous distribution among the participants of the cryptocurrency market.

However, despite the independence of Ethereum in many aspects, the cost of cryptocurrency is dependent on bitcoin. This is easy to follow if you pay attention to the movement of the two currencies. This is due to their similarity: there is no security, dependence on demand, the use of one technology, etc.

There is another opinion, stating that this dependence can be traced only during sharp changes in the digital currency market. For example, when there is a significant increase or decrease in their value. During periods of “lull”, the digital currency is completely independent, and therefore the investor should pay attention not to the development of Bitcoin, but to the features of Ethereum.

As a conclusion, we can say that in many respects Ethereum is an independent currency, as it has a separate development that does not depend on Bitcoin. However, due to the fact that the latter has a significant impact on the digital currency market, Ethereum is also exposed to it. This is due, more likely, to general indicators, such as market demand, confidence in digital currencies in general, etc.

In our opinion, Ethereum will become fully independent only when Bitcoin stops "radiating" leadership influence due to the fact that it has appeared before everyone else. There are bright prospects, because already now many analysts agree that the ETH dollar will soon bypass Bitcoin in one of the main indicators of ROI (rate of return on investment).