If there was one chart to encapsulate 2017, the bitcoin eth pair might be it, as their yoyo-ing tells, at least in part, the story of this miraculous year.
It begins where now looks like a blip, but back then was a pretty big deal. Spring 2016, when eth first entered the stage, at the height of the scalability debate.
Bitcoiners unhappy with network congestion and high fees flocked to ethereum for its fast transactions and low fees. But what they found when they looked was quite a bit more than that. A new world of Decentralized Autonomous Organizations (DAOs), of machine to machine payments, smart contracts, codable money.
So suddenly all eyes turned to the then baby currency, with hundreds of millions thrown towards the first DAO, courting the first crypto front page of New York Times.
Crypto being crypto, it was hacked, with the dream turned into a temporary nightmare. But after a cold winter, ethereum brushed it all off, got back on its feet, and opened the 2017 crypto show with a stupendous bull run in spring.
There hasn’t really been any more festive period in this space, that one can actually feel, than in May of this year when ethereum reached euphoria.
You could read hilarious jokes one moment laughing out loud, then brought to tears the next by ethereans sharing their story of how they could now pursue their dreams.
But a crash was to follow, with ethereum sidewaying for much of summer while bitcoin took center stage, with the asset transforming, suddenly and even unnoticeably, into a household brand.
That alchemic transformation was due to many reasons, but ethereum was certainly one of them. This is what the Times says today: “Bitcoin fans purr over £90,000 CryptoKitty.” Sure, bitcoin fans.
They’re hardly an exception. Ethereum is bitcoin in mainstream media. When eth sent GPUs out of stock, bitcoin did it. Won’t surprise us if they even think bitcoin has smart contracts.
Does that make bitcoin into, effectively, just what you call cryptocurrencies? Or is it simply a sign eth is so under the radar and in such a stealth mode that mainstream media has no clue about it, nor any clue about differences between eth and btc?
Who is to say, but bitcoin faced the same thing early on. Busy journalists throwing spaghettis at words hoping at least some of them stick/are factually correct.
Not that anyone really cares about the eth/btc chart. Ethereum broke all-time high recently in dollar value. So it’s not that ethereum fell, but bitcoin rose, and stupendously so, while eth rose too, but just not as stupendously since summer.
However, if you look at the chart closely, ignoring scale, what is happening recently in that ratio is almost exactly what happened in 2016.
Whether history will repeat itself in spring 2018 remains to be seen, but the dual back and forth between eth and bitcoin might one day be quite a story.