Yesterday, I was asked if the Ethereum price and Bitcoin price will rise from here. And, if so, how they could be traded.
“Do you think the Ethereum and Bitcoin price will rally from here?”, a friend asked me on Facebook.
Bitcoin started as a cryptocurrency. But, the Bitcoin most frequently quoted in the media is not — and will not be — a currency in a conventional sense. At least, it won’t become one that can be used for everyday transactions.
Well, there are two Bitcoins, the lesser known one is called “Bitcoin Cash”. That’s the cryptocurrency which can handle more transactions per second – kind of like a Visa or Mastercard network.
The Bitcoin which is currently priced at $US4,421 is more speculative, in my opinion.
But despite a splitting of Bitcoin into two different ‘currencies’, and concerns about both ‘currencies’ becoming outlawed by Governments, the ‘trading instrument’ version has continued to rally in price.
Ethereum is another of the 900+ ‘cryptocurrencies’ seeking to become the digital money of choice. While the entire market for the ‘trading instrument’ (Bitcoin) is worth $93 billion, Ethereum is worth $36 billion.
Unfortunately, it has not performed as well for its speculators.
Will the price rise from here?
I’ll be honest — because every other Bitcoin author won’t be — and say that no-one knows where the Bitcoin price or Ethereum price will be today, tomorrow or this year.
Just like shares/stocks, the short-term movements is driven by one thing: sentiment/momentum.
No-one knows how much money will enter the market.
No-one knows how much will leave.
How many Bitcoins will be mined.
Or, how many Governments will crack down on the currency.
So it is entirely speculative in the short-term.
Therefore, the question becomes: where will the prices head over the long run?
I’ve already said that some cryptocurrencies are not currencies at all. Which one are you buying?
Cryptocurrencies compare to shares, property or any other traditional asset which you know will still be around in five, 10 or 20 years from now.
So, will the Ethereum & Bitcoin price rally from here?
Take a coin out of the your own pocket and flip it.
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