Ethereum market cap has already crossed 50 percent with bitcoin and this is something that was forseen by Gavin and Mike. There are many reasons behind it with sheer number of projects that are being developed on the Ethereum and that is why the utility of Ethereum is increasing on a daily basis.
The Alt-coins are also going to bitcoin and in similar fashion, the ETH assets are going to Ethereum. There are lot of such assets in the bubble at the moment. For instance, it is in Ethereum news that in past few months the price of Ethereum has gone by up by 1500 percent and 40000 percent in last 12 months.
And since Ethereum is still in infancy state, any sharp rise or decrease does a round of price correction. This makes ETH a more dangerous currency at the moment. Bitcoin also went through same thing 2-3 years back but now has settled.
Another main reason is fact that in order to buy Ethereum, many people are still using bitcoins as most of the websites only let you convert bitcoin to ethereum and only one portal lets you buy ETH using credit card. This is why demand of bitcoin is so high.
For instance, the only site that lets you buy Ethereum using credit card is CEX.io and no other website at the time of writing of this article offers. Most let you buy ETH using your BTC wallet. So people first buy bitcoin and then ethereum using those bitcoins.
People are buying bitcoin for investing in bitcoin, ethereum as-well-as altcoins. And once it becomes possible to buy ethereum and altcoins using credit credit or other means, the demand will fall in a big way.
So, while the Ethereum and bitcoin are not interlinked, right now the best and fastest way to buy Ethereum is using bitcoin.
Honestly, we think that bitcoin is already at its peak and very soon, may be tomorrow, bitcoin won’t be able to hold its lead. Let us hope that by then, there are easier ways to buy Ethereum and altcoins as otherwise, these crypto currencies will fall as well.
Posted by Kamaldeep Singh on May 24, 2017