Ethereum, what have you done?
(From ICO CustomCoin Platform for crypto investors)
So, what have you done, Ethereum? Much time has passed since the birth of our beloved bitcoin and ending with the zoo ofcrypto currencies which we are observing now. But if we look at the dynamics of the development of the whole currency, it suddenly turns out that the number of newly made coins has grown by several times with the appearance of ethreum. Before the “era” of ruling with the standard way of creating a new crypto currency it was its fork, that is a branch from the general chain of blockchain. Thus, the new coins had a “common ancestor” — a piece of chain of blocks till the moment embranchment after which each currency had its own block. Another way was creating a new crypto currency from scratch. Both of these ways of creating new virtual money were only available to experienced programmers and required really huge capital investments.
However, with the introduction of ethereum, the situation changed dramatically. This crypto currency offered something that its predecessors did not have. On its basis, it was possible to create new coins without creating a new block, a token and this is how the money began to be called, this is the “superstructure” on the blockchain of the “boss” — ethereum managed by a smart contract. Sending to someone some token we actually forward ethereum with the information about tokens and their number. A token based on ethereum uses the same wallets as its creator, but as an independent unit, it’s not difficult to guess to what consequences it has led — creating one’s own money has become possible for everyone. From that very moment the era of numerous ICO projects started and that’s why we have so many new crypto currencies.
How did this fact affect ethereum itself and a crypto currency market as a whole? Not difficult to guess, the capitalization of great coins began to fall, investors began to withdraw money into new currencies. At the beginning of the year the total capitalization of the market remained the same as at the end of last year, but the major share of investments was relocated to new coins. Bitcoin and other great currencies from the top twenty began to get cheaper. This caused panic from long-term holders and as a result, the capitalization of the cryptomarket began to fall. Is ethereum guilty? Or ICO? Or ICO tokens?
Of course, not! All the past year we saw an unjustified increase in the price of bitcoins and great coins. But the capitalization should be equal to those services that crypto currencies provide us. Crypto currency is used for money transfers from point A to point B and that’s it! This is its imain task. And consequently, the capitalization should be equal to the money that is currently coming from point A to point B. Of course, this is a simplified version of what happens to electronic money, because gradually crypto currencies become equal participants in all financial spheres. And if the “rights of crypto currency” are equal to “the rights of fiat money,” we will witness the second boom that eclipses the first one.
Will ICO help? I think so. So far, this is the only way to tie cryptomarket to the real world. Thanks to ICO projects crypto currency can perform real tasks and take a worthy place in the economy.
So, what have you done, Ethereum? I think you have saved crypto currency.
The article was prepared by the ICO CustomCoin Platform team
