Ethereum Price Today in US Dollars – Price of ETH Live Chart

About Ethereum

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What is Ethereum?

In 2013, 19 years old teenage developer Vitalik Buterin, proposed Ethereum for the first time―four years after the launch of Bitcoin. His proposition carried new hopes for blockchain technology, one of which was expanding this technology to more use cases than just transactions. 

In 2014, its development got crowding support, and by 30th July 2015, the Ethereum network went live. Ethereum is a decentralized blockchain platform that uses Ether or ETH as its primary currency. ETH is the second largest cryptocurrency in the world by market capitalization after BTC. 

Ethereum is used to send and receive digital assets worldwide without the need or help of a third party, especially banks or the government.

On the outside, it appears Ethereum works similar to Bitcoin. But in reality, Ethereum builds on the innovations of Bitcoin, adding significant changes. The network handles payments and a lot more, including serving as a marketplace for apps, games, and financial services.

In addition, its creators plan to use Ethereum’s technology to substitute internet third-parties that store data and manage complex financial instruments. As of the time of writing, the annual electrical energy consumption of Ethereum is about 64.43 TWh.

That figure is comparable to Kuwait’s power consumption. The high cost of mining Ether and keeping the Ethereum blockchain running remains one of the major setbacks of the platform.

What Drives the Price Of Ethereum?

Like Bitcoin, people can mine Ether on the Ethereum network to create more supply. More specifically, they solve mathematical equations that not only confirm every transaction on the Ethereum network but add new blocks to the blockchain.

Miners who help solve such complexities are rewarded with Ethereum’s flagship cryptocurrency, Ether. The price of Ethereum in the cryptocurrency market is determined by several factors, including its supply and demand.

Like simple economics, if the supply for ETH is low and its demand high, prices are likely to go up. However, if the supply were high and then demand low, the price of Ethereum may fall. Another factor that drives the price of Ethereum is government authorities all around the world. 

Crypto isn’t accepted by all authorities worldwide and so has come under crackdown in recent times, most notably in China and Nigeria. So when Ethereum is restricted, its price falls. 

However, if authorities allow Ethereum-based activities, this could lead to increased Ethereum activities as well as an upward drive in price. The media is another tool that drives the price of Ethereum. It controls the moods and decisions of investors in a way.

If Ethereum is in the news for all the wrong reasons, expect a fall in the price for Ethereum. What’s more, the direction of the price of a competition such as Bitcoin can drive the price of Ethereum in the same direction as it. 

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