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Welcome to Bitcoin Panjab!
Each week we discuss Crypto markets and updates in Panjabi to keep you connected and stay ahead of the game!
Last week we discussed what Bitcoin is and it’s price trend since it’s launch. This week we want to talk about Ethereum.
What is Ethereum?
Ethereum is the second most popular cryptocurrency with a market cap of $66b. Market cap means the total value of all mined Bitcoins (there’s only a limited amount of Bitcoins that can be mined, making this asset scarce). Ethereum is an open-source platform that uses blockchain to create and run dApps. Ethereum’s main feature is Smart Contracts which execute predetermined, coded terms and conditions.
There are some key differences between a dapp and an app. Let us know in the comments if you want to learn more!
Similar to iPhone & Android upgrades, ETH 2.0 is the next version of Ethereum. The upgrades improve scalability, flexibility, security (using Proof of Stake algorithm), and programmability of Ethereum. The community reaction has been positive and we are seeing more adoption of Eth 2.0 daily.
If you’d like to learn more about the Proof of Stake or Proof of Work concept, let us know in the comments below!
Ethereum Price Trend
In the beginning, very few people knew about Ethereum or understood it so the price remained just around $2 to $8. However, in mid-2017 is where we started to see some movement. Eth price rose and remained between $100 to $340.
2018 was a big year for Ethereum as it reached its maximum value of $1400 in March. The sudden increase could be explained in large part because of its market capitalization making it the second most popular & used cryptocurrency. As Bitcoin’s price reached it’s maximum peaks, this presented Ethereum as an alternative coin due to Bitcoin’s volatility at the time.
The second reason was a surge in ICOs, which resulted in high adoption of Ethereum as most ICOs were using Ethereum at the time.
This year for Ethereum has been steady and gradual growth, the highest peak since it’s a maximum peak in January 2018. Ethereum was valued at $130 beginning of 2020 and breaking through barriers of $200 in March and $350 in August. Presently, Ethereum is at its highest peak for the year at around $585 with resistance at $600.
Bitcoin Price Trend Last Week
Last week we were hoping for Bitcoin to break through the $20,000 resistance however that was not the case. Bitcoin dropped significantly in value with the lowest price point at $17,600. However, it mainly maintained its position between $18,000 to $18,500. Bitcoin has now bounced back to where it was during our last episode at just above $19,000.
So what was the reason behind Bitcoin’s sudden fall despite it’s healthy upward trend the last few weeks? Whales. Big institutions and whales started to sell their Bitcoin holdings which resulted in huge price falls. From a technical perspective, we were starting to see a triangle take form on the chart which meant the price is now either going to fall or rise up. That paired with whales dumping Bitcoin created a big impact.
However, Bitcoin tends to recover very quickly as we’ve seen with the recent bounceback. It’s not very easy to manipulate the Bitcoin market due to it’s high market capitalization.
*All dollar values are in USD