“The blockchain space is getting to the point where there is a roof in sight,” said Vitalik Buterin, the well-known creator of Ethereum in an interview with Bloomberg at the Ethereum Industry Summit in Hong Kong. “If you talk to the average educated person at this time, you probably have heard of blockchain at least once. There is no longer an opportunity for another 1,000-fold growth in anything in space.”
The growth of Bitcoin and other cryptocurrencies of the blockchain community during the first six or seven years depended on marketing and trying to get wider adoption, Buterin said. “That strategy is close to reaching a dead end,” he said. The next step will be to get people who are already interested in cryptocurrencies to get more involved, Buterin said. “Moving from just interested people to real applications of real economic activity,” he said.
Ethereum, la segunda criptomoneda en importancia ha caido, su precio está por debajo de los 180 dólares. Y el mundo cripto se da vueltas buscando una explicación a la caída de la red más utilizada para las ICO ( Initial Coin offering)
Lo cierto es que no existe una sola razón, existen muchos factores, lo que hará más difícil su recuperación. Vamos a repasar estos factores.
In 2017 with an upward trend, the ICO became a key element for the movement of the price of ETH, since the projects raised funds in ETH, and used ETH for internal transactions, generating an important valuation of the cryptoactive. Thus, while maintaining a good course, these projects could help sustain the price of ETH, reserving the currency as part of its own capital.
But what about those who did not succeed? Well, they have sold their own ether to keep the project afloat. Leaving the network Ethereum touched According to the specialist Vijay Boyapati, this is the most powerful reason for this vertiginous fall.
Some projects, such as EOS, with more than 650 thousand coins, have sold all of their assets at ETH. Others like Æternity, Sirin Labs, Augur, Civic or Raiden have sold practically all their ETH. Sales volumes have risen considerably among this type of companies.
And although this may be a good reason, the truth is that for a fall so strong are shuffled a set of reasons.
Failure of the dApp’s?
One of the characteristics of the Ethereum network is its malleability to develop applications. However, when analyzing the users who have come to use these, we see that it simply did not work, so the Ethereum network stops being attractive for similar projects.
Thus, when observing dappradar data we can see the three applications with the most users:
– IDEX (decentralized exchange), with 1,779 users in the last 24 hours.
–ForkDelta (decentralized exchange?, With 1057. Then it is
–CryptoKitties (Card game) with 538 users and from there, going down.
The discontent of the community
The discontent of the community
Recently the community of Ethereum decided to cut the reward for a mined block of 3 to 2 ETH, a measure that seeks to shove the dizzying fall of the price of the cryptocurrency and revalue the existing currencies. However, despite the positive approach of the measure, the fact that there have been a few members of the community who took this decision leaving out small holders, developers or miners, that is … that part of the community that does not have In his wallet so many ethereum, he has raised doubts regarding governance in Ethereum.
Members of the cryptocurrency ecosystem like Matt Odell referred to this decision as something convenient for the holders of a large number of ETH, adding that the change from consensus mechanism to PoS privileges these people.
The figure of Vitalik Buterin has also generated controversy. Buterin described the Bitcoin and Ethereum blockchains as “disgusting.” In fact, as the year progresses, its apparent distance from the direction the project has taken and the difficulties to achieve some plans such as the migration to a consensus mechanism through Participation Test (PoS) are observed.
The development and profitability of mining
The progress of the project as such involves solving some of the problems of the network. For what is being worked on, although these improvements are still in very early stages. Plasma, Casper or sharding are still growing elements. Thus, although the theoretical strata for these solutions are already being handled, implementation in the protocol is not yet a reality.
Remember that sharding is a tool that seeks to alleviate the network congestion, modifying its segmentation and dividing the validation between different groups of nodes to increase the efficiency of the network. For its part, Casper is a consensus algorithm that will change how Ethereum mining works, since it implements the migration from the Work Test to the Participation Test, in principle in a hybrid way. This code has been devised to make the change of the consensus mechanism simple, and done entirely in Serenity.
Finally, Plasma is a second layer technical solution created to improve smart contracts in the network. The objective is the generation of autonomous intelligent contracts, called Plasma Contracts (Plasma Contracts). The initial idea was developed by Buterin and Joseph Poon, one of the authors of the Lightning Network whitepaper, the second layer solution for Bitcoin scalability.
Another significant point is the profitability of mining. This activity has lost momentum because operating mining equipment in the network is becoming less and less profitable, both due to the operational cost of the activity (with the payment of electricity, the purchase or rental of equipment and its maintenance) and by the depreciation of the cryptoactive.
In February, the cryptoactive was quoted at $ 1,389 and currently its value is $ 174, which represents a drop close to 87% in 7 months, according to figures from coinmarketcap.com. The cryptocurrency has a market capitalization of $ 17,766,995,205, with a total of 101,909,977 ETH in circulation.
Writer by birth, curious by profession … I learn a little more every day from the cryptocurrency.