Ethereum Loses More Than 50% Against Bitcoin Since July 2017
Ethereum, one of the most important virtual currencies and blockchain networks in the market is down more than 50% against Bitcoin since July 2018. The famous virtual currency behind the Ethereum platform, Ether (ETH), is in a real bear market.
Back in January, the cryptocurrency reached new all time highs after being traded around $1,300 dollars, but now is 66% down since then. In terms of BTC, it passed from 0.15072 BTC in July 2017 to 0.0711 some hours ago, meaning that in almost a year, BTC has registered a reduction in its price of 52%.
ETH is in one of its lowest points of the last year, but at the same time, it has an important community that is working at all times. Additionally, the US Securities and Exchange Commission said that Ethereum is not a security, an important information for the entire cryptocurrency ecosystem. But the SEC also explained that Initial Coin Offerings (ICOs) are most of them unregistered securities.
It is important to mention that Ethereum’s price may be pressed down due to the fact that an important number of ICOs are selling the funds raised during their sales. In the future, its price could see an upward trend considering that it has more active accounts than Bitcoin itself.
Another point to mark is that EOS may be considered a better system compared to Ethereum, which may be influencing the price as well. During the last months, there have been several cryptocurrencies that claimed to be ‘the next Ethereum,’ including NEO, EOS and Tron. And it is possible that this could have influenced the market. Something similar to what happened between Bitcoin and all other Altcoins.
Another critic to Ethereum is related to the big influence that Vitalik Buterin has on the network. Some individuals and experts believe that the network is too centralized compared to other blockchain systems and cryptocurrencies.
WhalePanda, for example, an important Twitter account in the cryptocurrency world commented on June the 25th about the famous virtual currency:
“‘Interesting’ thread by Kyle. What Kyle actually points out is that Vitalik is the single point of failure of Ethereum which obviously makes it a centralized project. In the 2nd tweet he calls $ETH the ‘market leader’ without mentioning what for exactly.”
At the moment, Buterin is working in order to guide the cryptocurrency and network to a stake consensus algorithm rather than a Proof of Work (PoW) one. The influence of Buterin has been growing after the DAO hack, at that time a hard fork and a rollback was proposed to recover the stolen funds.