Cryptocurrency is gaining a lot of attention nowadays. A number of companies and investors are investing in the digital version of currency. Though it is gaining success and its value is skyrocketing but it also brings a number of scams and controversies with it. Some of the famous cryptocurrencies that has collected a lot of capital are Etherum Bitcoin and others. Those who are familiar with cryptocurrencies must acknowledge the term “bubble” which affects the reputation and image of cryptocurrency. The bubble is considered as the short term activity that is having some sort of ups and downs. Ethereum bubble has gained a lot of attention because etherum mining has gained a lot of attention and Etherum value has changed tremendously in 2017 and has experienced ups and downs. Same is the case with Ethereum bubble because people want to invest in Etherum in order to avail the chance.
Two types of Ethereum
While if Etherum cryptocurrency is considered, it can be seen that there are two types of Etherum and Etherum blockchain methodology let the people to have transactions without any central authority invovled. There is a very interesting reason behind the creation of these two versions. It all started with the most notable Etherum project, DAO which raised approximately $150m. It let the people to have Ether currency which is a digital currency and Etherum currency works in a similar function as Bitcoin do. The idea behind it was simple which let the investors invest in DAO and attain voting tokens. After investing and voting, the investors would have the democratic power to decide how the invested amount DAO should disperse. When the voting was initiated, the DAO was attacked by hackers and investors used valid action in the code to withdraw funds into another DAO controlled by them. Majority of the investors agreed to make a change in the code of Etherum in order to get funds back to investors and to avoid attackers. While few of them disagreed with this decision and continued to avail the previous version of Etherum without any major changes which are named as Etherum Classic. It is a version of blockchain in which funds were not returned back to owners. These were the reasons behind two type of Etherum currency.
Prerequisites for bubble Ethereum
Now, if we talk about the prerequisites of Etherum bubble, there are various such as lack of ICOs and presence of the bug in the code. The DAO project raised millions of dollars but hackers manipulated its codes and destroy the digital assets. While another prerequisite of Etherum is the intervention by the SEC which considers selling tokens to people very seriously. Another thing which is worth mentioning is that every new startup has bubbles in it and can let the investors be millionaires or failures within days.
Opinions of well-known investors and financiers
Different financiers and analysts have different views regarding Etherum bubble. According to some financiers, it involves significant risk to the investors and can drown the invested amount. According to Derin Cag’s views, there is no industry without a bubble and ups and downs are part of every industry. It has the leading blockchain methodology and a supportive network which have already addressed the major issues. Different financiers have different reviews regarding Etherum bubble but the majority of them considers it valuable and not Etherum scam just like Bitcoin which was considered scam previously. Bitcoin Scam damages the repute of digital currencies and it is also one of the reasons behind people investing in digital currency. While as a matter of fact, it is a prime investment scheme. Those who want to invest in Etherum, it is the best time to invest because those who have Etherum wallet gained a lot of profit.
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