Why Did Ethereum Face a Record Fall And What Should Investors Do?

In 2015, after the launch of the Ethereum blockchain, the cryptocurrency industry was transformed beyond recognition. In this article, we will talk about why Ethereum is such a unique product, how to mine it, and we will definitely  touch upon the urgent topic of the rapid fall of its price.

Content:
(please, click the topic to scroll down to it)

  1. Features of the second most popular cryptocurrency
  2. More about the Ethereum mining
  3. Why has the Ethereum price recently dropped so much?
  4. Conclusion

1. Features of the second most popular cryptocurrency

Ethereum project is not just a digital coin, it is also a full-fledged platform based on which you can create your own decentralized applications. Another feature of the project is the support of smart contracts, which can potentially be implemented in any sphere of life. Thanks to Ethereum, a number of new decentralized projects began to appear on the market, that, in turn, accelerated the development of the entire cryptocurrency industry.

Ethereum is much more innovative than Bitcoin, it is often called cryptocurrency 2.0. Some of the largest banks in the world are already starting to work with the Ethereum platform, as they see the capacity of it, for example, Sberbank of Russia. Ethereum is almost the main popularizer of the blockchain technology for various types of business. It is also worth noting that transactions in the Ethereum network take an average of 20-30 seconds, whereas in the industry leader (BTC) this rate is approximately 10 minutes.

2. More about the Ethereum mining

The Ethereum blockchain works on the PoW algorithm, so the coin can be mined by the usual way for most users, by installing computing equipment or by using the services of data centers. Despite the fact that the coin is very popular, the complexity of its network is not too great yet, in order to start mining it at home.

  • The block size of the Ethereum varies from 20 to 30KBytes;
  • The average time between blocks is 14.4 seconds;
  • Reward for the new block is 3ETH;
  • The complexity of the network is 3129P.

The coin can be mined either independently or by joining a mining pool. It should be said that the second option is much more profitable and useful unless you have hundreds of thousands of dollars of initial investments. Another option for the mining of the Ethereum is cloud mining. It certainly eliminates many worries associated with servicing the farm, but results in profit which is much lower.

3. Why has the Ethereum price recently dropped so much?

Due to the great popularity and unlimited emission of the Ethereum tokens, the project has an inflation rate of about 10% per year. Vitalik Buterin, on behalf of the entire development team, said about the sharding of the network and the transition to Proof-of-Stake (Casper) protocols, which will reduce inflation by almost 20 times.

According to the graph of CoinMarketCap, the Ethereum price has grown from $8.33 to $1 378 over the past year, which gives 16 500% of rise. Unfortunately, this year we see a reverse picture of what is happening. At the time of writing, the rate of the second most popular coin fell to a psychological mark of $200 per coin. There are a number of reasons for such a precipitous fall, which we will discuss further:

  • General correction of the market. All 2018 the bears rules on the market, so all the coins lost from 60% to 90% of their peak values.
  • Forced sale of the Ethereum. The ICO market is developing rapidly over the past years. New blockchain startups, which created their products on the Ethereum blockchain, collected investments in ETH. After a successful ICO, developers need to cash out some of these investments in order to develop their project. Mass sale of an asset entails a decrease in its value.
  • Competitors. The market is beginning to appear quite promising projects, which, potentially, can solve all the problems of their older brother, such as EOS, NEO, Tezos, Cardano, etc. Of course, they are still far from the brainchild of Vitalik Buterin, but this is a very fast-moving industry, where changes occur at the speed of light.

4. Conclusion

Ethereum is an innovative locomotive of the cryptocurrency industry. Almost anyone can create smart contracts and their own decentralized projects with its help. The coin certainly has a certain number of problems that hinder its further development. The development team is actively engaged in their solution.

The coin rate has fallen dramatically, but this is not a reason to panic and sell off your coins. Fundamentally, nothing has changed, the project is still one of the most innovative in the market, so with a high degree of probability, it will have a bright future. And the temporary fluctuations of the exchange rate can be nothing more than market manipulation of the bears.

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Interview with Mark van Rijmenam: In 2019 We Will See More Blockchain Projects Coming to Fruition

How often do you have questions about cryptocurrency that no one can answer? How many times have you had them in your head before investing in a dubious project or in the most popular cryptocurrencies? And how does this blockchain even work? We often need an assistant or an inner voice that will put everything in its place. The Coin Shark will introduce this person to you.

We ask the most relevant questions about cryptocurrency to our experts, professionals in crypto and blockchain business. Today, our “inner voice” will be Mark van Rijmenam, founder Datafloq, named global top 10 Big Data influencer and one of the most influential Blockchain people. 

Hello, Mark. What do you think, what problems can be solved using blockchain at the global level?

Blockchain is a paradigm shift, a fundamental technology that will change every industry. Blockchain is relevant everywhere there is a trust issue (when individuals, organisations or things have to collaborate) and when there is a transaction. Blockchain is especially relevant for the financial sector and the supply chain sector, but blockchain can also be used for social good. In our latest book, Blockchain: Transforming Your Business and Our World, we discuss how blockchain can contribute to solving issues such as poverty, climate change, fraud, corruption, censorship, identity theft, etc.

What is the most extraordinary and unique project you had to work with?

Personally, I find the projects that look at using blockchain to solve real-world problems the most interesting. Projects that aim to offer us a self-sovereign identity for example, such as Sovrin or uPort, have the opportunity to change how we deal with identity. That can also be used for developing countries, as over 1,5 billion people still lack a government-issued identity. Also, those projects that aim to help the 2 billion unbanked in our world, such as Humaniq, are very important.

How can your own Datafloq project affect crypto and tech industry?

Our objective is to help the community with relevant articles on blockchain, crypto and other technologies including big data, artificial intelligence and the internet of things. In addition, we are about to launch a new project that could help in the massive fake news problem we have.

Do you invest in cryptocurrency? If so, do you prefer well-known coins or new projects?

I do have different cryptocurrencies. Whichever project I decide to participate in, I always look at what the product is that they are developing, who the team is, how long they have been working on it, what code is already there, do they already have an alpha or beta version, etc. For me to participate in a new project means that I need to have a very good understanding that the project is capable of achieving what it wants to achieve.

Your forecast: what future awaits crypto industry and all holders of cryptocurrency in 2019?

Hopefully, 2019 will see a more stable environment due to global regulations being put in place how to deal with ICOs (although I am aware that it takes time to achieve that). In 2019, we will also see more blockchain projects coming to fruition and delivering real-world products and services. Slowly, the decentralised ecosystem will become to appear as the technology required for that becomes ready. 2019 will be a very interesting year!

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Top 10 Cryptocurrencies: All the Largest Cryptocurrencies to Invest in 2018

From the moment the first cryptocurrency has been launched into the net, nobody would ever believe that it will become the most attractive investment object. Even investors who earlier admitted the possibility to get profits only from IPO shifted their attention to ICO and other means of investment into digital coins.

Curiosity significantly increased in 2017, when cryptocurrency shocked the market by its capitalization, which grew from $ 18 billion to $ 800 billion. However, the phenomenal increase turned into a fatal fall of the market capitalization to the point of $ 254 billion. Now, it is the end of October 2018 and the world is anticipating another cryptocurrency growth.

That is why it is necessary to consider TOP 10 most attractive cryptocurrencies for investment in 2018.

1. Bitcoin (BTC)

It is the most popular cryptocurrency which does not require any introduction. Even those who have nothing to do with crypto industry and hardly distinguish blockchain from blockbuster know about it. The only thing is that many people have problems with the concept of Bitcoin, as a cryptocurrency and a platform.

So let’s sort it out. Bitcoin is a payment system that uses Bitcoin or, in brief, BTC cryptocurrency coins in order to account transactions. The peculiarity of the system lies in the objective to exclude centralized intermediaries such as banks, credit organizations and others. For example, you need to transfer 1 BTC and it is possible to make it through Bitcoin payment system without banks and other financial institutions. Bitcoin cryptocurrency is alternative to fiat currencies such as USD, RUB, JPY and others.

Bitcoin pros

The benefits of BTC can be discussed endlessly. After all, the largest cryptocurrency is the oldest one among all existing cryptocurrencies. It has the largest crypto community, which includes developers and investors who support the further development of Bitcoin currency.

BTC is easy to buy, as it is supported by all the well-known cryptocurrency exchanges and digital wallets. The world’s fundamental economy takes into account the world’s first cryptocurrency, and such well-known platforms as Bloomberg, Microsoft, Overstock.com, Expedia.com and others accept BTC crypto-money as the payment means for purchasing goods and services.

Bitcoin cons

It has annoyingly slow transaction speed that takes about 10 minutes. This is due to the capacity of the network which is able to process not more than 7 transactions per second.

Due to increasing competition inside the network, BTC mining has become extremely energy-consuming. Today, not everyone can afford a mining farm. As Bitcoin mining requires ultra-powerful computer equipment with corresponding cost. Beside that, it consumes a lot of electricity.

Bitcoin transfer fee is unreasonably high, which makes it less attractive for many people.

Historical performance

It is hard to believe, but in 2010 everyone could afford BTC, since the price for a one was about $ 1. Isn’t it nothing? But in December 2017, the price appeared to be not funny at all. One BTC was sold almost for the price of $ 18 thousand.

After such a rise the rapid fall has started. Now, BTC is experiencing recovery times, the crypto industry is anticipating a new wave. Even in the slack period, Bitcoin remains the first cryptocurrency in the world in terms of capitalization, which is 30% of cryptocurrency market.

2. Ethereum (Ether)

If you are not familiar yet, then let me introduce you the second cryptocurrency in the world, after Bitcoin, which is in great demand and interest of a wide audience which is not even directly dealing with digital coins.

The first Ethereum coin was created in 2015 by Vitaly Buterin. Many people believe that it is more than a cryptocurrency. Ether has the same situation as Bitcoin, as it is both a platform and a cryptocoin. As a platform, Ethereum is developed on blockchain technology for creation of decentralized services and smart contracts. ETH is an intra-platform currency which is used as a payment method for the services provided by the Ethereum platform.

Ethereum pros

It is the largest platform worldwide for creation of smart contracts. It provides a complete base for launching tokens and other projects on the basis of the blockchain technology. The transactions in the Ethereum system are completed just in few seconds, while Bitcoin keeps you waiting for 10 minutes.

Ethereum cons

When scaling, Ethereum faced many problems. The platform still checks the transactions that cause network overload on the Proof-of-Work mechanism. ETH mining requires high computational power, which can be provided only by ultra-powerful computer equipment. Not everyone can afford such equipment for mining, and the process of cryptocurrency mining consumes a lot of electricity. But now the developers are trying to solve the problem related to the demands towards electricity consumption and reduction of network competition.

Ethereum also supports only one programming language called Solidity. The world’s second cryptocurrency from time to time is faced with the competitive pressure of digital coins, such as NEO and Cardano, because they offer similar services via an improved technology.

Historical performance

2017 was the best year for ETH. Then the price of digital currency began to grow rapidly. The price increase lasted until January 15, 2018. Then the cost of one ETH was $ 1,390. Now, as of the end of October 2018, ETH is at the stage of degeneration.

3. Ripple (XRP)

This is a unique cryptocurrency, a platform that has an evolutionary mission such as the elimination of problems related to implementation of international payment transfers. Ripple platform, with its digital currency, was launched in 2012 in order to speed up and reduce cost of international transactions.

Ripple pros

Any international transfers last a week, while Ripple needs only a few seconds in order to complete this task. Also, the transfer fee is much less. Compared with traditional fee this is a very small amount of money. The platform partners are real financial institutions, including American Express and Santander. Many people think that making money with Ripple cryptocurrency is more than realistic.

Ripple cons

The platform contradicts a fundamental principle of cryptocurrencies such as decentralization. Due to the fact that half of the XRP belongs to the company for scalability, it follows that the management of the digital money flow of the Ripple platform centrally.

Historical performance

Ripple was launched in 2012, but it gained its success only in 2017. After a fantastic increase of crypto money prices, XRP has become the third largest digital currency in terms of capitalization. Ripple has surprised everyone because its price has grown almost from zero to $ 4.

4. Bitcoin Cash (BCH)

As you have guessed, Bitcoin cash is a fork cryptocurrency of the well-known Bitcoin, which was originally launched into the network in 2016. Fork appeared in the result of not taking a single decision by the Bitcoin developers regarding the system updates. In fact, Bitcoin Cash is an improved version of Bitcoin.

Bitcoin Cash pros

During the upgrade, the block size was increased to 8 MB, which significantly increased the speed of transactions. We remind that one Bitcoin block has a volume of 1 MB, which explains the slow speed of transactions.

Bitcoin Cash cons

It is suggested that Bitcoin cash becomes as decentralized as its parent company. However, now it remains doubtful.

BCH mining is a costly thing. Due to the network competition, it has become very difficult and energetically consuming to mine new blocks. Now, in order to mine Bitcoin Cash a huge computing power provided by the ultra-new computer equipment is required. The cost of such machines is sky-high. Competition in the network is constantly increasing, so mining will constantly require upgrade of computer equipment.

Historical performance

After the first launch of the network Bitcoin Cash very quickly reached the TOP cryptocurrencies. In July 2017, the currency price increased from $ 500 to $ 4 thousand. Anyone can compare Bitcoin and Bitcoin Cash charts. We recommend CoinMarketCap for monitoring. While comparing the charts, pay attention that the performance of the BCH price is very similar to BTC one.

5. EOS

It was launched by ICO in June 2017. The platform itself is considered to be a direct competitor to Ethereum and NEO. It was created by Dan Larimer, the founder of the cryptocurrency exchange Bitshares and Steemit. EOS is a platform for developers who are working on creation of decentralized management applications and improved smart contracts.

EOS pros

The platform will be much bigger and have a more global impact than the well-known Ethereum. Such forecasts are justified by an enhanced mechanism for monitoring transactions. Presumably, the developers will be able to accelerate the speed of transactions to 10 000-100 000 operations per second.

EOS supports several programming languages, including C ++. The names of the team members who have been working on the implementation of the concept, and are currently improving and launching their own platform, are known worldwide.

EOS cons

The only one and main disadvantage of EOS is that the platform is still in test mode. Therefore, all its advantages are only forecasts for the future.

Historical performance

Since its launch, the cost of the EOS token has increased significantly. At the same time, it is one of the few digital coins that has suffered heavily from the collapse of the cryptocurrency market, which occurred in early 2018. Despite the fact that currently, in October 2018, the cost of EOS cannot exceed $ 6, the cryptocurrency remains in the TOP 10.

6. Stellar (XLM)

This cryptocurrency is a Ripple fork. The founder of XRP and XLM is Jedo McCaleb, that is why it unites Stellar and Ripple. The introduced digital currency differs from the others, which are in the TOP, by the fact that the project it supports is not commercial.

Stellar pros

The XLM is much more decentralized than the Ripple. It is more trustworthy because it is non-commercial. More than 30 banks and financial organizations, such as Deloitte and IBM, cooperate with Stellar.

Stellar cons

There is a huge competition aimed at solving problems related to the international payments. Ripple is among the competitors.

Historical performance

Stellar currency exchange platform has been operating since 2014. The revolutionary solutions of developers that are integrated into the platform have helped XLM cryptocurrency to enter TOP 10 best digital currencies in the world to invest.

7. Litecoin (LTC)

A former Google employee, Charlie Lee, in 2011 created the Litecoin payment system, the cryptocurrency of which  is called LTC. The platform is developed on Bitcoin blockchain technology. This fact raises the question: “What is the difference between LTC and BTC?” as in fact, there is no difference. Litecoin hit the top ten due to the fact that it has passed the test of time.

Litecoin pros

Transactions with LTC take not more than 2.5 minutes, while Bitcoin keeps you waiting for about 10 minutes. The commission per transaction on average amounts to $ 0.179. This is undoubtedly an advantage, since Bitcoin`s average commission equals $ 1.8.

Litecoin cons

This digital currency can offer nothing but insignificant transaction speed. It is not substantially different from other cryptocurrencies. Litecoin is constantly facing the competition, which can make a much better offer, complemented by confidentiality, smart contracts, international money exchanges and others.

Litecoin currency can be mined. But this mining will be very costly due to high resource consumption such as computing power, electricity and other things.

Historical performance

Litecoin has been in the top 10 cryptocurrency leaders for 7 years. Its sidereal time was in December 2017, when the cost increased to $ 350 from $ 4. After the price increase a collapse occurred, which negatively affected the majority of cryptocurrencies.

8. Tether (USDT)

This cryptocurrency is connected to dollars, a fiat currency. It is called a crypto-fiat hybrid, because the cost is connected to a fiat currency: 1 USDT is always equal to $ 1. Dollars are not the only currency to which the USDT is pegged. The cryptocurrency also supports euro and yen.

Tether cons

There are no problems with the transfer of these coins to other currencies, as popular fiat currencies constitute a price benchmark. Although Tether currency is considered to be a hybrid one, it still retains the benefits of cryptocurrencies, such as decentralization, transparency and accessibility.

Tether pros

Perhaps, this cryptocurrency is one of the most scandalous. News portals daily break the news, where the well-known figures of the crypto industry criticize the hybrid currency. Tether may refuse to service the customers who do not meet the consumer’s conditions.

Historical performance

Tether was launched for the first time in 2015 by Tether Limited Company. For such a short time of its existence the cryptocurrency joined the TOP 10. From 2017 to 2018, the token issuing volume from $ 10 million increased  to $ 2.4 billion.

9. Cardano (ADA)

In 2017, Charles Hoskinson created Cardano. He worked on the development jointly with the co-founder of Ethereum. Cardano is a decentralized platform for creation of the similar applications and smart contracts. The idea is the same as in the Ethereum, but the difference is that Cardano is an improvement. At the moment, Cardano is the most modern generation of blockchain technology.

Cardano pros

The platform is supported by academic communities whose members are famous blockchain researchers and scientists. Cardano is much larger than Ethereum, and its throughput per second is 257 transactions.

Cardano cons

Many concepts which were presented before the launch of the platform have not been implemented up to this day as the final product. It has strong competitors – Ethereum, EOS, NEO, Fusion.

Historical performance

Despite the fact that Cardano a relatively new cryptocurrency, it already has managed to make its contribution into crypto-industry and get into the TOP companies. In the period of huge increase in cryptocurrency prices which occurred in 2018 год, ADA grew up from $0,2 to  $1,2. In March 2018 Cardano`s price significantly decreased, however now, by the end of the year it is coming back to life a little bit.

10. Monero (XMR)

This cryptocurrency is aimed at anonymous payments. Monero is issued via cryptograms and doesn’t have any relations to a fiat currency that is why the transfers are made via this platform without any banking interference.   

Monero pros

The given cryptocurrency doesn’t depend upon a fiat currency that is why it is indifferent towards inflation. XMR has its limited number which guarantees the permanent currency demand increase. Monero is considered to be one of the most reliable cryptocurrencies among the currently issued ones. More over, it guarantees complete anonymousness and its holder`s protection.  

Monero cons

Each transaction volume is approximately 8 times bigger than in the Bitcoin system. Despite the fact that Monero position itself as an anonymous cryptocurrency, some critics still extensively deny this peculiarity and put it under a huge doubt.

Historical performance

For crypto-industry Monero became more recognizable in the middle of 2016, when its price began to grow actively. In August 2016 one XMR coin was sold with the price of approximately $1,7, and in September the same year the first serious digital record recorded for Monero in the amount of $13. Nobody could ever think that new and more successful records will appear. March 2017 brought the good news with the mark of $22, August showed the number of $144 and December surprised a lot that XMR price reached $460. Do you think it was a limit? Of course, it was not. At the moment the maximum record Monera got in January 2018 with the price indicator of $494.

Thus, after huge rise the strong falling begins. The cryptocurrency today is sold approximately with the price of $100 per coin.

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“Captain Kirk” From Star Trek Protected Vitalik Buterin’s Interests

Canadian actor William Shatner, better known as the USS Enterprise captain, James Tiberius Kirk, who is a character in Star Trek TV show, published a tweet in support of Ethereum founder Vitalik Buterin. In this way, he triggered the English-speaking crypto community. William’s audience on Twitter counts more than 2.5 million followers after all.

The reason for the disagreement was the tweet of a user premine apologist, and it said that Buterin is a “scammer” who is not able to provide Ethereum network with full decentralization. In response to this, premine apologist received the following answer from Shatner:

https://twitter.com/WilliamShatner/status/1060293715363717120

Later Shatner wrote:

https://twitter.com/WilliamShatner/status/1060304446079397888

The answer of William Shatner was supported by a significant part of the audience of crypto community. We remind that the actor is not new to cryptocurrency industry and blockchain. He is a representative of a blockchain project specializing in extraction of solar energy for mining.

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Administartion of Chinese Secondary School Was Mining Ethereum: Details of Crime

School seems to be the very place where the laws must be strictly observed, especially in China, a totalitarian country with strict rules, including those related to cryptocurrency and mining. Unfortunately, it is not that simple.

A funny story happened in one of the middle schools in the city of Chenzhou, Hunan. According to local Chinese news outlet HK01, the Principal and Vice Principal were caught mining Ethereum using school assets.

According to the Principal’s words, he first installed the equipment at home, but the electricity bills were too high, so he decided to relocate it to the school dorm, but there was not enough space. He had no choice but to transfer all the servers and equipment to the school.


Source: HK01.com


After some time, namely several months, the teachers of this school began to complain that computers emit a lot of noise and often “slow down”. The teachers decided to find the answer to this issue and found mining rigs.

Principal Lei Hua and Vice Principal Wang Zhipeng have already received their punishment, in the form of dismissal and warning, respectively. Meanwhile, we want to remind you that mining in China is growing and flourishing, thereby threatening the security of the world’s most famous cryptocurrency, Bitcoin.

Bitcoin Is in Danger: Chinese Hegemony Over the Industry

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Mike Novogratz Says Bitcoin Will Beat a New Record In 2019

According to BitJournal, the billionaire and legendary investor of Wall Street, the head of Galaxy Digital shared his opinion that in 2019, the rate of the world’s first cryptocurrency, Bitcoin, will exceed $20 thousand again .

Mike Novogratz answered, before BTC overcomes a new psychological mark, it must exceed $6.8 thousand in price. This will also affect the growth of trading volume. Novogratz assures that BTC will finish 2018 at a price of $8.8- $9 thousand.

This forecast is more realistic than the previous one, in which Mike said that the price of BTC at the end of December 2018 will be at around $10,000. The investor shared that BTC will reach a five-digit price in the first quarter of 2019, and then “will go back to new highs”.

The billionaire notes that the immobility of the rate will end when regulatory uncertainty is eliminated and interest from institutional investors will rise.

We want to remind you

Billionaire Investor Mike Novogratz Said That the Market Had Finally Passed the “Bottom”

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Ethereum 2.0 Will Soon Be Working on the Proof-of-Stake Protocol

Vitalik Buterin, the founder of the coin and platform Ethereum, has recently spoken at the crypto conference in Czech Republic where he shared a couple of important details regarding the major upgrade of the system Ethereum 2.0.

First and foremost, the name “Ethereum 2.0” has been replaced by a much more melodic one – Serenity. Secondly, one of the important features of Serenity is going to be the implementation of Casper. The Casper update will allegedly solve the problem with scalability by switching Ethereum from the PoW protocol to PoS.

Buterin was very excited and confident about the launch of Serenity.

Launch is basically the milestone that we’ve all been waiting for,” he said.

We remind you:

Vitalik Buterin Introduced an Updated Version of Ethereum

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