10 myths about cryptocurrency
Cryptocurrency has always been a controversial topic – ever since bitcoin took the world by…
It is not to be underestimated that the cryptocurrency has had an undesirable price development in recent months. The arrows have pointed downwards despite the fact that you naturally want them to point upwards.
As the first cryptocurrency on the market, it is the cryptocurrency Bitcoin that to a very large extent plays a decisive factor when it comes to price development. Time and time again, we have seen that when Bitcoin experiences a fall in prices, the other cryptocurrencies follow.
This applies, for example, to the cryptocurrency Ethereum, and at the time of writing it is only two weeks since we experienced that the exchange rate of this cryptocurrency was at the lowest level we have seen in half a year. In this article we will take a closer look at this!
Like Bitcoin, Ethereum is a form of cryptocurrency. Cryptocurrency is a digital means of payment. The concept of cryptocurrency took the world by storm in 2009. At this time, cryptocurrency was more or less synonymous with Bitcoin, as it was the only currency.
But Bitcoin is far from perfect, and there were a number of developers who shared this view. To be a little more specific, the technology that Bitcoin is based on handles only a limited number of transactions at one time.
This led to the development of what is today considered the world’s second largest cryptocurrency, Ethereum, which was launched in 2015. Only beaten by Bitcoin, but of course it comes as no surprise.
Maybe a good time to buy?[main]
As the first two cryptocurrencies on the market, Ethereum and Bitcoin have many similarities. Here are some of their similarities:
But this is also where the similarities end. It’s no secret that the developers of Ethereum have been inspired by the developers of Bitcoin, but they have slightly different goals. While people can use Bitcoin to store value, Ethereum developers’ goal is a little more comprehensive: All apps should be decentralized!
As mentioned in the introduction, it is extremely rare that the other cryptocurrencies manage to stay at a stable level when the price of Bitcoin first falls.
When this happens, the prices fall like flies. Bitcoin first, Ethereum (and everyone else) after! And this is what happened this time too. Below we will take a closer look at how much the price of Ethereum fell in the current period.
Over the weekend two weeks ago, the price of Ethereum fell by a staggering 34%. This is a development that is followed every few days, and in the relevant period the exchange rate was NOK 27,516 on Thursday and NOK 19,450 the following Monday. With that said, it has increased a bit again now!
But this is nevertheless a thought-provoking, as it is easy to forget that Bitcoin, Ethereum and most other cryptocurrencies are characterized by a very high volatility. We have not seen lower courses in connection with Ethereum since the summer of 2021![main]