Wednesday, 12 July 2017

Ether drops sharply, but for long?

Posted by Anonymous at 12:56 Labels:

Ether, the second-most popular and valuable cryptocurrency in the market, has lost nearly 50 percent from its peak of $369.99 reached in June 11. This immense volatility has risen many questions across the market. Why such movements? Are digital currencies to be trusted?

In recent weeks, we’ve seen a similar dynamic on Bitcoin, the number one cryptocurrency by trading volumes. It seems the fastest these currencies go up, the hardest they fall afterwards.

Cryptocurrencies increased their popularity as an alternative to traditional government-regulated currencies. Both Bitcoin and Ether do not rely on any rely central bank to control their value by intervening with huge amounts of cash to move them from one side to another.

Following the 2008 financial crisis, investors all around the world felt disappointed with central banks, very disappointed to be fair. For such reason, the idea of decentralized currencies started to step harder into their minds.

By the time of this writing, Ether was trading 11.95 percent higher at $206.36, recovering some of yesterday’s 4.3 percent drop. It’s important to note that in January, Ether traded at only $8 and in less than 6 months it amounted a crazy 4,000 percent.

The inclusion of cryptocurrencies in trading platforms worldwide is getting more and more attention as the number of traders taking positions on them grows every single day. And for a good reason, cryptocurrencies are very very young and therefore, there’s a lot of potential left.

Sizable returns are still attracting a big portion of traders into the crypto fashion. They are nothing like stocks or even Forex. And even the $200 mark remains super high, despite the recent draw. Plus, if governments (just like Japan did with Bitcoin) start accepting Ether as a legal currency for payment and transactions, popularity will grow and quotes too.

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