Factors affecting ethereum
Ethereum is less exposed to many of the economic and political factors which affect traditional currencies, but its value is influenced by a host of unique dynamics:
Unlike bitcoin, there is no limit on the supply of ethereum. Even so, many ether units will continue to be added and lost over time, causing its availability to fluctuate.
The ethereum ecosystem is constantly changing as adoption of the cryptocurrency grows, both among independent investors and those in industry.
Governments are still adapting to cryptocurrencies, with considerations for supervision mechanisms and other new guidelines.
Negative press, particularly surrounding security lapses and hacks, can impact public perception of ethereum’s value.
Ethereum’s integration into payment systems, crowdfunding platforms and more could raise its profile, while confidence in traditional systems may begin to erode.
A lack of regulation means traders may be able to influence the market by buying and selling in significant quantities.