Ana Sullivan

Ethereum Price for 2018 – Will The Government Try to Regulate It?

by Ana Sullivan May 4, 2018

BitCoin has successfully managed to evade the control of the government after it was announced as a security, not a currency. This resulted in a massive hit on BitCoin’s price and many cryptos follow it. But it also raised investor fear due to the fact that Ethereum has not yet been announced as a security and if this actually happens, will it’s price and all of the ERC20 tokens’ price be impacted by it?

 

Ethereum’s Current Price Analysis

With a current upward trend, Ethereum is steadily approaching it’s previous all-time high of $1,412 against the U.S. dollar with a 24h volume of almost 6 billion USD. Right now, ETH is half that amount at a current price of 797,78 USD and a 24h volume of just above 4 billion USD. And while the interest in Ethereum has not dropped down and it has deserved it’s 2nd place in terms of cryptocurrency popularity, Ethereum has kept rising since it’s 3 month low on April, the 7th - $370,26. And having so many ERC-20 tokens, large community of miners and contributors plus the enormous media attention does contribute a lot to Ethereum’s price increase, but it also does mean one thing – ETH is a cow, which is growing big and it may face the consequences of regulation sooner than we thing, like it happened with BitCoin.

Ethereum – A Threat to Unregulated CryptoCurrencies?

 

The main people who are responsible for cryptocurrency regulations and have passed a lot of laws that prohibit CryptoCurrency trading and ICO advertising in several countries may feel uncertain whether the same rules by which Wall Street is operating at the moment will be viable when it comes to Ethereum – the world’s second most popular crypto. So when it comes to BitCoin, they have it all sealed down, but they did understand that they cannot stop it as it weathered out the law storm. But Ethereum and Vitalik Buterin have been silent so far as to what is to happen with ETH, of which most ERC-20 tokens with a lot of ideas into creating a newer, more decentralized future depend on. So Ethereum has not yet seen any type of government bans, but a possible attack at Ethereum’s community may result in a lot of ERC-20 tokens to decrease in price alongside Ether.

And when it comes to Ethereum’s current standpoint from the Government’s perspective, it is clear that people at the government and regulation experts do believe that it’s creation has been conducted with the sale of illegal assets, which is contrary to what it’s community believe, because Ethereum is decentralized and nobody in particular is responsible for it’s insane price boost.

But this still does not throw away the fact that according the U.S. construction every asset deal should be transparent, especially the high-value ones and according to those laws, Ethereum may be breaking the law. But whether or not this will result in any consequences, it may already be too late because Vitalik Buterin has gathered quite the community behind this token and is continuing to provide results with more and more projects being realized, like their recent achievement – Golem.

So the bottom line here is that one thing is for sure, no matter the outcome – Ethereum is here to stay. And if there is such a negative outcome in this token, it will raise investor fear and may cause the recent hammer price movements ETH has been causing to whether down and if this is going to happen for longer period or briefly, nobody knows. And if you are an investor or contributor to the project, be advised to never invest more than you can afford to lose and to always refrain from the crowd’s opinions, because cryptocurrencies are a volatile assets and their price is subject to rapid changes.

 

Images Sources: Coinmarketcap.com(Graph);cantechletter.com(Vitalik Buterin)

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