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Bitcoin crashed! In a word of Musk, the digital currency plummeted!


Ethereum is thriving, what logic?

 The world's second-largest digital currency, Ethereum, is continuing to challenge the influence of Bitcoin by its "functionality".

 On the morning of May 13th, the price of Bitcoin plummeted by more than 13% and once fell below the $50,000 mark. As a challenger to Bitcoin, Ethereum fell by about 8% and continued to narrow its decline. The previous day, Ether  The market rose by 6% during the intraday session, with a market value exceeding US$500 billion, and its price hitting a record high. 

 In the past 6 months, the price of Ethereum has risen by as much as 8 times, out of the independent market, has far outperformed the continued consolidation of Bitcoin.  At present, the share of Ethereum in digital currencies' total global market value has risen to 18%, while the weight of Bitcoin's market value has been cut in the past two years, and the current market value has dropped to 38%.

 On the morning of May 13, there was still a major negative in the currency circle, and Musk suddenly announced that Tesla would suspend support for Bitcoin payments.  This caused Bitcoin to fall to 45,800 US dollars at one time, a plunge of more than 8,000 US dollars.

 Some analysts believe that Bitcoin and Ethereum are currently leading the cryptocurrency market. It is predicted that in the next five years, Bitcoin's gains against gold may reach 10 times, and Ethereum may bring trillions of dollars in opportunities. 

 Unlike Bitcoin, which seems to lack practical functions, Ethereum is more like an operating system for smartphones. Many entrepreneurs develop medical, entertainment, news, finance, games, and other applications on the Ethereum network. These APP-like applications  As their user activity increases, they increase the demand for Ethereum.

 Digital currency differentiation, Ethereum becomes a market engine

 The digital currency market is undergoing an astonishing divergence. On the one hand, the price of Bitcoin, the world’s largest market capitalization, has been consolidating for nearly two months at around $58,000; on the other hand, the world’s second-largest Ethereum is in, In the last two months, the price of Ethereum broke through $4,300 in intraday trading.

 Ethereum has become the strongest price performance among mainstream blue-chip currencies in the last six months.  It has risen by 8.2 times in 6 months, while Bitcoin has risen by 2.6 times in the same period.  In the last 7 days, although Bitcoin has been weak, it has not affected the strength of Ethereum.

 Ethereum has risen by 28% in a week.  As of the evening of May 12, the market value of Ethereum exceeded US$500 billion, or RMB 3.2 trillion. It has surpassed the market value of Kweichow Moutai, JPMorgan Chase, and other companies, and its market value has ranked 14th in global assets.

 It is worth mentioning that the main transaction volume of Ethereum may come from Chinese investors.  The data shows that Ethereum's turnover in the last 24 hours is mainly concentrated on the following three exchanges-Binance, Huobi, and Coinbase.  Among them, the transaction volume on Binance accounted for 11%, the transaction volume on Huobi accounted for 5%, and Coinbase accounted for 4%.  

Binance and Huobi were mainly founded by teams in mainland China. Although they are globally oriented, a considerable proportion of users come from the Chinese market; while Coinbase Exchange is an American company.

 Ethereum's weight rises rapidly, Bitcoin share is eroded

 The strong rise of Ethereum has greatly impacted the weight and influence of Bitcoin in the digital currency market.

 According to the data on the evening of May 12, the weight of Ethereum in the total market value of the global digital currency market has risen to 18% and is approaching 20%.  

The market value weight of Bitcoin in the global digital currency has dropped to 38%. Two years ago, Bitcoin thrived. Its market value weight in the global digital currency market was once as high as 75%.

 In other words, in just two years, Bitcoin's market value weight accounted for half of it.  As the world's second-largest Ethereum, with the blessing of funds, its market value weight has risen by nearly 10 points.  

The expected increase in the weight of the market value of Ethereum has therefore become a rising logic for the strong price of Ethereum.

 Although the digital currency has always been regarded as a Ponzi scheme by mainstream people, according to incomplete statistics, more than 50 large companies around the world accept digital currency as a payment method.

 However, there are still very few digital currencies that can be regarded as payment methods. Most companies only accept Bitcoin and Ethereum.  This also provides conditions for Bitcoin and Ethereum to become strong and enter the mainstream. 

 Just recently, Arte, a high-end luxury apartment located in Miami, USA, announced that it will now accept cryptocurrency as a payment method for new residential development and purchase of exclusive apartments.

 Charles F. Stewart, CEO of the well-known auction house Sotheby's, also announced that Sotheby’s will start accepting Bitcoin and Ethereum payments. Art lovers can bid for the works of famous street artist Banksy in cryptocurrency next week.  Air".  Cryptocurrency payments will be carried out in cooperation with Coinbase Commerce.

 Tilman Fertitta, chairman, and CEO of Landry’s, a privately-owned restaurant, hotel, and entertainment chain in the United States, also said that most of his restaurant chain brands will soon accept Bitcoin as a payment.  He called this move an "inevitable" step in the mainstreaming of cryptocurrencies.  

"In the next 90 days, we may be able to achieve this function in about 80% to 90% of all our catering brands. You no longer need to use a MasterCard, Visa, or American Express credit card." "You can use it.  Bitcoin or other digital currencies," Fertitta said.

 Ethereum's "operating system" is more attractive than Bitcoin?

 When Ethereum and Bitcoin became one of the few alternatives to cash payments, Ethereum, which has a low market value, found more reasons for its rise. At least Ethereum investors hope to benchmark against Bitcoin.

 Yassine Elmandira, a cryptocurrency analyst at Ark Investments, said that despite Musk's efforts to turn Dogecoin into an actual means of payment, Dogecoin may be trumped and eliminated from the current high price.  Bitcoin and Ethereum are currently leading the cryptocurrency market. 

He predicts that Bitcoin's gains against gold may reach 10 times in the next five years, and Ethereum may bring trillions of dollars in opportunities.

 Some cryptocurrency analysts even believe that the price of Ethereum still has 300% room to rise, that is, to reach $10,000.  Cryptocurrency analyst Kaspar explained: “Using the proof-of-stake method for block verification can reduce carbon emissions by 99.9%, making Ethereum a green technology. 

Therefore, these two updates alone can push Ethereum higher.  To a market value of 1 trillion U.S. dollars, and today this is exactly the market value of Bitcoin, which will bring the price of Ethereum's coin to about 8,000 to 10,000 U.S. dollars."

 Some analysts also pointed out that Ethereum has more practical significance than Bitcoin.

 What is Ethereum? If Ethereum is regarded as a stock, then the "business" of Ethereum is more like a smartphone operating system that can use multiple applications for Bitcoin.  

Unlike Bitcoin, people can build applications on Ethereum, and entrepreneurs can develop entertainment, news, games, lending, medical and other applications on the Ethereum network.

 As more and more decentralized applications continue to be active on the Ethereum network, some analysts believe that the price potential of Ethereum can be estimated based on the activity of applications on the Ethereum network. 

These are built on Ethereum.  Most of the applications need to use Ethereum as a transaction method, which supports the price of Ethereum.

 The competition between Ethereum and Bitcoin will continue, and Bitcoin investors will find it difficult to tolerate the influence of Ethereum stealing Bitcoin.

 However, in terms of current miners' income, The Block data shows that the daily income of Ethereum mining is now higher than that of Bitcoin. 

The daily income of Ethereum mining is $77.3 million, while the daily income of Bitcoin mining is 6730.  Ten thousand U.S. dollars.

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