It can no longer be ignored that blockchain cryptocurrencies have entered the world market and are here to stay. Ethereum, the faster and more advanced younger sibling to BitCoin has been gaining increasing popularity not just worldwide, but on a global political scale. This amazing new cryptocurrency not only acts as an exchange medium, it can also be integrated into businesses to make their processes and notarizations more efficient, enticing banks, corporations, and even government leaders to consider becoming a profitable part of the Ethereum economy. Of course, you don’t have to be a large organization to get in on Ethereum. It can be mined or bought by anyone with a working computer or mobile device and used as currency for almost any purpose.
Ethereum Price on a Global Scale
Like any currency, the price of Ethereum varies in response to world events, but the influence these events have doesn’t work like a national currency. People buy into cryptocurrency, raising the value, when they want something that transcends the values placed in nations.
This enthusiasm and faith in a strong cryptocurrency can stem from several major directions but is most strongly affected by the overall confidence in global and national markets. In other words, when stability goes down, the Ethereum price goes up, because people are afraid that their national currency will be devalued in the event of war, emergency, or significant mistakes made by political leaders.
As cryptocurrency becomes an increasingly valid form of legal tender, it becomes more reliable as a form of backup currency for people who want to hedge their bets. On top of this, the Ethereum price has consistently been well over a dollar since the beginning of 2016 and in the last month has more than doubled from 150 to over 350 dollars and continues to rise.
The China Yuan vs Ethereum
As one of the largest economies in the world, China and the stability of the yuan have a notable impact on the price of Ethereum, along with the other prominent blockchain based currencies. While spikes in the past can be attributed to economic instability and drops in the value of the yuan, China’s not down for the count. Currency Bulls, that is people who bet against currencies, have given up on trying to short-sell the yuan, even with China’s recent troubles, as the People’s Bank of China is simply outspending them to keep the yuan price up. This is creating a massive value sink in the world economy as a whole, and may temporarily distract investors away from cryptocurrency while the yuan is propped up. Watch for brief down-swings in Ethereum price for opportunities to buy the dip before the value rises even higher.
Possible Russian Integration
From another perspective, Ethereum is gaining more ground as an enterprise solution, tempting countries and business alike with its incredibly profitable dual purposes as both a currency and a processing infrastructure. Putin has personally met with Ethereum founder Vitalik Buterin to express his enthusiasm for implementing blockchain technology in Russa, stating “The digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business models”, and Russia’s central bank has already created a blockchain pilot project that will run process online bank transactions, and Ethereum may be on the table as a national virtual currency for Russia in the future.
All things considered, it looks like Ethereum price will continue to rise as the digital currency gains popularity and spreads its influence to an increasing number of markets and economies. Any international instability will cause increased interest, while at the same time the system itself provides stability and value to any system that integrates it for its data processing applications. While there will surely be future shifts in the price of Ethereum, the overall trend appears to be rising.