There’s a few fundamental reasons why Ether price will increase in the next few months. It’s important to understand those forces so I decided to put in this post the reasons I believe will make Ethereum price soar to new highs.
The last bull run of Ethereum in February last year was in the midst of the scaling debate. The blockspace was totally filled up due to Bitcoin high adoption. The debates and uncertainty in the Bitcoin community surrounding the future path that Bitcoin should take was one of the main factor in the increase of price of Ether.
A lot of people were betting on Ethereum as an hedge to Bitcoin. For those who did, it paid off tremendously.
Today we are seeing a lot of uncertainty again in investors mind concerning the controversial Segwit2x fork in Bitcoin scheduled for November. The current core developer won’t be supporting this fork and will keep working on the original Bitcoin.
I think we will see many other forks in the future and the debate on social media concerning the different scaling solution will not end anytime soon. Ethereum will benefit from all this fear and uncertainty.
2.How Could the ICO Craze Affect Ethereum?
There is a huge trend right now on issuing new tokens through initial coin offering( ICO). Over 70% of new ICO are bing issued on the Etheruem platform. This ICO trend will only increase over time.
The American Security and Exchange commission ruled ICO an issuance of security and will be penalizing American company for participating in those ICO.
But American can still invest anonymously into any ICO using the anonymity that Bitcoin offers. The SEC cannot affect the cryptocurrency ecosystem much because it has been created specifically to curb governmental rules.
Millions of dollars are pouring into ICO right now and most of this money goes into project on the Ethereum platform. This trend will only increase over time and Ether value will raise just like a boat on a rising tide.
Bitcoin was first centralized when Satoshi Nakamoto was at the rein of the project. Decision where made quickly and there was no arguing on which direction it should go.
Decentralized decision making has been a huge bottle neck for Bitcoin lately because it’s really hard to come to a consensus on hard questions.
Ethereum is not suffering from this problem because of its founder, Vitalik Buterin. He is in charge of the project and whatever decision he makes, the whole community usually follow him.
This is why every time decentralized decision making slowdown the improvement of Bitcoin, Ethereum tends to appreciate in value.
