Marc Serafino
Like we have some crystal ball to predict the future, we get asked a lot what will happen with Ethereum in 2018. The truth is — we don’t know. What we do know is that Ethereum is gaining momentum and it is seemingly unstoppable.
Sure it’s price fluctuates a lot — it is a cryptocurrency after all and speculators are riding the wave — but the good trend is there, and we think that long term, it is on the way to become a serious currency people and companies all around the world will gladly take.
Here are some of the factors that are driving the price of Ethereum up; combined they could tell us where this promising cryptocurrency will be in 2018. Yes, we think it will grow, but let’s not get ahead of ourselves…
Dapps are coming…
A “Dapp” stands for a “decentralized application” which is the one that runs inside or on top of a blockchain. Ethereum supports this capability and we already have a few apps in development — or better yet, testing — that could revolutionize such industries as finance, healthcare, peer-to-peer services, and more.
As we noted in some earlier articles, we could easily imagine a distributed system that would directly connect users with vendors and service providers, one that could compete with the likes of Uber and Airbnb.
Big business support is there
In March 2017, the Enterprise Ethereum Alliance (EEA) was created, gathering blockchain start-ups, research groups, and Fortune 500 companies. Members of this group include the likes of Cornell University’s research group, Toyota Research Institute, Samsung SDS, Microsoft, Intel, J.P. Morgan, Merck KGaA, DTCC, Deloitte, Accenture, Banco Santander, BNY Mellon, ING, and National Bank of Canada.
These companies have their and their customers’ interests at heart, and will work their best to make use of Ethereum-based blockchain, which as we know, goes beyond peer-to-peer money transfers.
Banks get to benefit…
For what it counts, banks could be the ones benefiting a lot from blockchain, driving the entire ecosystem forwards. According to a recent Accenture report, the blockchain technology could save the 10 largest banks $8 to $12 billion a year in infrastructure costs — representing up to 30 percent of their total costs in the sector.
Could Ethereum surpass the value of Bitcoin?
Some people think that could happen by the end of 2018.
“What we’ve seen in ethereum is a much richer, organic developer ecosystem develop very, very quickly, which is what has driven ethereum’s price growth, which has actually been much more aggressive than bitcoin,” Olaf Carlson-Wee, CEO of cryptocurrency hedge fund Polychain Capital, said in an interview with Bloomberg.
Another expert, Fred Wilson — who is a co-founder and managing partner at Union Square Ventures and also chairman of the board at Etsy — laid out an even more ambitious timeline for Ethereum in his recent interview. “The market cap of ethereum will bypass the market cap of bitcoin by the end of the year,” he said.
Current situation is different, though…
As I’m writing this, Bitcoin dominates a little less than half of the digital currency market, which is down from almost 90 percent some three months ago. Meanwhile, Ethereum has quadrupled its share, and it now represents more than a quarter of the pie.
Also Bitcoin’s market cap is $37 billion which is 75% higher than Ethereum. So if things change, they will have to change drastically. And you know what — that could actually happen with traders all around the globe making speculative trades that drive the prices of the whole [cryptocurrency] market, with Ethereum being the one to benefit the most.
Ethereum in 2018: Conclusion
One thing is certain, 2018 will be an interesting year for Ethereum. And chances are, it will grow, though you can’t take our word for it as we can’t give you an investment advice. Therefore we expressly disclaim any liability, including in respect of direct, indirect or consequential loss or damage.
At the end of the day, investing in Ethereum is just like any other risky investment. It comes with a risk, but you can also make a lot of money. You could try putting some money in it, or miss out the boat. It’s your call.
