While Bitcoin continues to remain the “blue chip” of cryptocurrencies, 2020 has seen Ethereum trail in second place, as well as the rise in popularity of altcoins built on Ethereum.
Following a 27% correction that saw its market value plunge to $900 on Jan. 11, Ethereum entered a stagnation period. Its price has made a series of higher lows since then, but the $1,270 resistance level continues to reject ETH from advancing further.
When you look at ETH’s network size, the number of connections, and trajectory of price, Metcalf’s Law is being repeated once again with Ethereum. In fact, Ethereum is exceeding that of Bitcoin’s movements, but this may be an application of Metcalf’s Law with regards to cryptocurrencies in general. The more that people integrate cryptos into their lives, the more that cryptos are being accepted, and that growth continues to push cryptos in general. Ethereum’s movements may be simultaneously both a cause and effect of the network economics of the crypto network.
And, if Ethereum actually does repeat Bitcoin’s movements, Ethereum will hit $20k.
But, all of this puts thinking into a conundrum. If Ethereum actually does go up higher like it is about to do, wouldn’t Bitcoin continue along with it? If there is an acceptance level of both and the number of individuals that get involved because of the price movement as well as the headlines BTC makes, wouldn’t that continue to push BTC higher?
And, if so, how do you decide how much of one currency
Bitcoin may have limitations as to how high it may go because of the number of individuals in the system.
If you need proof of this, just look at Facebook’s own growth rate in the developed world such as North America and Europe. The growth rate continues to moderate compared to Facebook’s initial numbers. That makes perfect sense when you think about it. There is a finite number of people living in these countries.
I think about that philosophically and I wonder how much BTC can push. The latest moves are mind-boggling and difficult to explain. Because of this, I believe diversification is something that I need to get very aggressive with.
Following a 27% correction that saw its market value plunge to $900 on Jan. 11, Ethereum entered a stagnation period. Its price has made a series of higher lows since then, but the $1,270 resistance level continues to reject ETH from advancing further.
When you look at ETH’s network size, the number of connections, and trajectory of price, Metcalf’s Law is being repeated once again with Ethereum. In fact, Ethereum is exceeding that of Bitcoin’s movements, but this may be an application of Metcalf’s Law with regards to cryptocurrencies in general. The more that people integrate cryptos into their lives, the more that cryptos are being accepted, and that growth continues to push cryptos in general. Ethereum’s movements may be simultaneously both a cause and effect of the network economics of the crypto network.
And, if Ethereum actually does repeat Bitcoin’s movements, Ethereum will hit $20k.
But, all of this puts thinking into a conundrum. If Ethereum actually does go up higher like it is about to do, wouldn’t Bitcoin continue along with it? If there is an acceptance level of both and the number of individuals that get involved because of the price movement as well as the headlines BTC makes, wouldn’t that continue to push BTC higher?
And, if so, how do you decide how much of one currency
Bitcoin may have limitations as to how high it may go because of the number of individuals in the system.
If you need proof of this, just look at Facebook’s own growth rate in the developed world such as North America and Europe. The growth rate continues to moderate compared to Facebook’s initial numbers. That makes perfect sense when you think about it. There is a finite number of people living in these countries.
I think about that philosophically and I wonder how much BTC can push. The latest moves are mind-boggling and difficult to explain. Because of this, I believe diversification is something that I need to get very aggressive with.
Comment:
Why Bitcoin and other Cryptocurrencies are going down.
