Ethereum Explodes Above $30, Soars 35% In Past 24 Hours

While much of the media and public attention has been understandably focused on Bitcoin in recent months, a far more dramatic move has taken place in Bitcoin's less popular peer, Ethereum. To be sure, one month ago, when we noticed the first tangible move higher in ETH since last summer's dramatic plunge following a highly public hacking scandal which involved a "forking" in the blockchain, we mused if China's furious momentum chasers were turning their attention from bitcoin to ethereum.

While the jury is still out on whether Chinese traders have shifted their attention to the less popular digital currency, this morning Ethereum surpassed all-time highs and was trading above $30. As of publication time, the blockchain-based unit had soared by over a third in just the past 24 hours according to Coinbase and CoinGecko ...

The recent surge in Ethereum began on February 27, when as we reported the Enterprise Ethereum Alliance was launched, a project focussing on Blockchain propagation and innovation for international business which includes such members as JPM, Intel and Microsoft.

Curiously, another big move took place after the rejection of the Bitcoin ETF by the SEC late on Friday, when various "altcoins" experienced a slight drop followed by a sweeping comeback, as some speculated that public attention could now shift to various Bitcoin competitors.

That said, some have expressed skepticism if the current rally can persist, most notably leading Ethereum developer Vlad Zamfir, who last week wrote that Ethereum “euphoria” could soon end due to the prospect of another hard fork. “I am not feeling any euphoria anymore. I am mostly filled with concern about how everything could go horribly wrong,” he warned.

"I say it because I want you to understand where I’m coming from when I react to feeling euphoria in the Ethereum community. I felt euphoria for about the first eight to 12 months of becoming involved in Ethereum— I am not feeling any euphoria anymore. I am mostly filled with concern about how everything could go horribly wrong, with feelings of being overwhelmed, with being unable to keep up with everything that I feel requires my attention."

Zamfir wrote in his blog post that Blockchains are not toys, they are neither get rich quick schemes nor a shiny tool for automating business processes. "They are powerful technology that have the potential to do unspeakable harm. But they can also provide the basis for solutions to serious global problems," he pointed out. He claimed that he is not rubbishing Ethereum because it is not an exciting technology or he doesn't care about all the work the community is doing. He claims he is very optimistic about the future of the platform but troubled by the no room for opposition. Zamfir explained further:

"I didn’t make that tweet because Ethereum isn’t safe or scalable, really, I did it because I find the current level of euphoria quite offensive. Maybe it isn’t my place to keep euphoria in check. Maybe it is. I don’t know. But I will probably continue to express myself by turning my feelings into radical, unnuanced tweets nonetheless."

Cited by CoinTelegraph, the consultant then said that Ethereum is not safe and he cannot guarantee there won't be a 51% attack on the network unless there is a hard fork to minimize the damage. Likewise, on smart contracts, he has the same opinion. He did, however, concede that a lot of smart people in the Ethereum community are working hard to make Ethereum safe and secure with smart contract formal verification efforts and with proof-of-stake consensus protocol research.

"I think that we will continue to make steady and impressive progress on these safety problems," Zamfir acknowledged.

He is also optimistic Ethereum will get better:"Granted that all Blockchains suck. Is Ethereum at least more safe or scalable than other Blockchains? Maybe. But that is a nuanced discussion that won’t fit in this margin."

Re: Capital Gains On Currency

About a month ago, I read an essay right here at Free Republic by Nobel economist Joseph Stiglitz on currency manipulation and international trade.

Stiglitz suggested that if all USA capital gains taxes were eliminated on gold and silver, AND, if gold and silver were declared legal tender once again in the USA, businesses and consumers could effortlessly and safely hedge against currency manipulation by any foreign government, or by the Federal Reserve.

I thought that was a really cool idea, but I have not seen it talked about since.

In many respects, massive, risk free, USA hedging in gold and silver would accomplish exactly the same result as crypto currency, but the market mechanism is already in place, and gold and silver have been trusted for thousands of years.

I'm all for that. In fact, I have a small account with a company that specializes in storing gold while providing for electronic liquidity by providing a "bank card" you fill once you sell off some of your gold at market, all done electronically.

I feel the steps that the states of Texas, Utah, and Arizona are taking to make gold and silver legal tender is also a great step in that direction.

To me, one of the greatest dangers we face, besides losing the internet, is the loss in value of our dollar - something I don't see how we can avoid now after Obama.

It's all just a guess where this leads. I have 4 miners with 2 GPUs each that have mined over 150 ETH in slightly over 1 year. Before that, I mined over a score of BTC, and several hundred LTC.

Because I feared a crypto collapse, and frankly because I needed a little extra money, I sold a number of each last spring - now I have the income tax thing to figure out - anyway, if I had only sit on what my few miners produced, I would have well over 1/2 million $.

I told you this because, as it stands now, I obviously took the wrong action. So, from my mistake, learn that it's really hard to know where, are how far, this goes.

If I see a large dip, I think nothing of purchasing BTC, ETH, or LTC, even at these prices to later sell at a profit on any of a number of exchanges. There are also any number of great tools/apps to help you trade. I mostly trade from the convenience of my smart phone, nowadays, something I never dreamed I would be doing only a few years ago.

Another thing, these technical issues that periodically affect each coin are eventually fixed. I don't worry too much about them. I think the real issues will revolve around which way the political winds blow, and how well cryptocurrencies blend into our current financial system.

In that regard, if synthetic CDOs (collateralized debt obligation), the largest holding of debt value on the planet, what some have called "financial weapons of mass destruction" have found a niche in our financial system, why shouldn't cryptocurrencies be allowed to?

Bitcoin might actually prove far more useful and helpful to our financial well being than these, or even fiat currency.

Time will tell, and to anyone who reads this, I always recommend diversification of assets. Provide for the necessities of life first before playing around with any kind of financial instruments, and certainly the same goes for cryptocurrency.

The above said, I look for ETH to roughly maintain a level somewhat inline with historic ratios to BTC, BCH, LTC, or for BTC to fall back inline with the others. I currently own all three.

Despite major network issues, due to the additional traffic brought about by ETH's popularity, and ease of adding additional functionality, it remains my favorite cryptocurrency.

There are plenty more cryptos in the news which have also made astronomical gains such as DASH, Ripple, and etc. Opportunities are endless for those with the energy, and wherewithal, to grab on.

Just my 2 Bytecoins worth, and yes, I owned 1.5 million of those too, at one time. I did well with them too... Lol

Good luck to ya!

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