The co-creator of Ethereum Steven Nerayoff attributes increasing number of projects built on Ethereum could cause a “flippening” in 2018. If this happens, there is a potential for Ethereum value to increase by 300 percent of its current worth. Yesterday (8th January 2018), Nerayoff explained the current situation in the “Fast Money” segment on CNBC;
What you are seeing with Ethereum is exponential increase in the number of projects. There are billions of dollars pouring into the ecosystem right now. Maybe 10 times more projects this year than last year, which could easily lead to a doubling, probably a tripling in price by the end of the year.
Comparing Bitcoin value and Ethereum value
The main function of Bitcoin’s design is to act as a peer to peer electronic transaction system. On the other hand, Ethereum executes smart contracts under specific conditions. Nerayoff who was involved in creating token sales for Ethereum project, mentions the increasing number of various industries are looking at what Ethereum platform has to offer for them.
You’re seeing a tremendous amount of growth across a wide variety of industries. Fintech is actually the natural area, but now you’re seeing it becoming increasingly more creative — you find projects in the oil and gas industry, you’re finding government using it in their applications, you’re seeing it in gaming, all kinds of different areas.
According to Nerayoff, in addition to project building the use of Ethereum platform is increasing due to the ability for faster low-cost transaction processing. This gives the upper hand over other cryptocurrencies, even Bitcoin.
People are actually using it for currency, as well… Lower transactional costs are increasing usage of the entire network, and that’s increasing the network effects of it. There are more users, more projects being built on there and more programmers.
Even though Nerayoff is confident about Ethereum, he does not undermine the power of Bitcoin. Bitcoin made many investors gain interest in cryptocurrencies in 2017.
“The entire space is increasing. There is huge interest by the public and there are more areas in which the public can invest, even in bitcoin. So, you could just see an expansion in the entire space.”
Nerayoff thinks 2017 is going to be a good year for Ethereum. As of 9th January 2018, according to Bitfinex.com, the value Ethereum is at 1,231 USD. According to Coinmarketcap.com, the current market capitalization of Ethereum is 119 billion USD, while for Bitcoin it is 257 billion USD.