Cryptocurrency Valuations Hit All-Time High Surpassing $100 Billion, Ethereum And Bitcoin Lead Charge
Since April 1 the combined market cap of cryptocurrency has increased 300 percent from $25 billion to $100 billion. Bitcoin has witnessed an 160 percent upshot while Ethereum’s value has increased by 439 percent. There have been a few dips in value over the last few weeks, but they have all been short-lived. Bitcoin values went from $2,700 to $2,000, but then pulled up to an all-time high of $2,850.
It is quite difficult to “value” cryptocurrencies and determine whether their current prices are worth it. Cryptocurrencies are not based on public companies and therefore do not necessarily share their earnings and expenses. There is also disagreement over how to value them. Some people regard cryptocurrencies as legitimate, genuine currency, while others remain skeptical of their worth.
Why are cryptocurrencies suddenly worth so much money? Ripple is based on inter-bank settlements and recently signed up with over one hundred banks worldwide. Ethereum has gained quite a bit of popularity because it is able to be scripted for smart contracts that protect all parties. This ability also allows it to build new tokens and host initial coin offerings (ICOs), essentially to help crowd-fund the currency. Many people are excited about the possibilities that relatively new cryptocurrencies like Ripple an Ethereum can provide. Bitcoin also has retained quite a following since its introduction in 2009.
Are cryptocurrencies experiencing a bubble or a renaissance? Only time will tell, though it is concerning and perhaps even suspicious whenever the value of an asset (like Ethereum) increases by over 400 percent in only two months. Cryptocurrencies have become more secure, however, so their popularity and value may be here to stay. This goes without saying, but as usual, use your own discretion if/when making investments.