After a brief dip to $640, ethereum has once again risen above $700 at the time of writing, making many moms happy on this mothers day as some of their sons and daughters gift them eth.
Current trading volumes stand at a somewhat decent level for a Sunday, at around $2 billion, while transaction volumes remain at around 800,000 a day.
The dollar pair is very much dominating, taking all top 4 positions, with the BTC pair following. While South Korea’s biggest exchange, Bithumb, is handling only $50 million trading volumes for eth.
From a technical analysis perspective, ethereum’s recent daily candles look interesting. Especially yesterday’s closing candle.
From a common sense perspective, that candle suggests bears briefly took charge and sent the price down to $640, but met strong resistance from bulls, who were able to retrace all loses, and then go on to gain.
Yet just as the almost identical candle before that suggests, one can’t read too much in painted candles as events, information or sentiment may change either up, down, or sideways.
Ethereum, however, looks a bit more bullish than the other cryptos, at least for today as shown by the featured image.
The reason might be because a number of eth based dapps are now coming out with some of them being quite usable and fairly easy to navigate for end users.
The ecosystem, therefore, is starting to gain some concrete shape, with some of the things talked about now actually implemented after two years of building.
That includes the latest to launch, Ujo Music, which allows musicians to bypass intermediaries or gatekeepers by monetizing their songs through publishing directly on ethereum’s chain for metadata and on IPFS for storage.
They join many other dapps which launched this year, with the question of what you can do with eth now having many answers.
And the number, as well as variety, of those answers will probably continue to grow as the billions invested in dapps last year, and the hundreds of millions before that, begin translating into products, at least for some of them.
Arguably, however, they’re not quite ready for take-off as most of them are first versions in need of some refinement, but as pieces of the scalability puzzle are now put together, and may make a full picture by 2020, those that begin playing or refining now might be ready for use by ordinary individuals in two years time.
Which means the current price, and perhaps its future direction, is more of a bet regarding the value of eth with 100 million transactions a day and whether it will get there.
That’s because of front-running. If you estimate a fully scalable eth with tens of thousands of dapps and use cases is worth $20,000 or even $200,000 at a market cap of $10 trillion, then obviously you do not want to wait until it actually reaches $20,000.
But that’s if it does so. It may well not do, events may be eventing, so you discount that estimate by 80% or whatever depending on the level of risk you want to take, and thus accordingly decide how much of your savings you want to bet with.
Another, and a somewhat simpler, approach is to just diversify by having 10% of savings in very risky assets, 20% in less risky, another 40% in boring stocks or whatever, another 20% in even more boring and very safe assets, and then 10% in cash or easily accessible savings account just in case you need it quickly.
Obviously none of this is financial advice and the above numbers are somewhat randomly picked. How much you allocate on what would probably depend on age and how much you actually have.
The younger, the more you can afford more risk and thus potentially more gains, while at pension age you probably want to play it very safe.
Ultimately however all investing has risk. So even if you are holding cash you’re betting on probabilities of whether the Central Bank may devalue your money Argentina style.
And while that betting can be pretty much like a casino if you day trade, it can also be quite a calculated and even a wise investment decision in longer timeframes.
That’s, of course, if you don’t want the asset to use it for something. No one wants cash for its own sake, for example, but because of the many uses it has.
Bitcoin tried to gain a similar level of usage, making it a means of exchange, and has to some extent partially achieved it by being accepted in shops.
Ethereum has a different approach towards the same end. Instead of the currency being used only to pay for old fashioned goods, it has a somewhat native use in dapps, making it desirable for use, rather than just as an investment, and thus quite worthy of the title “internet money.”