So why ethereum is struggling to get over the $170 mark in a one-year term? And why it is not the same as bitcoins.
“Bitcoin is different and Ethereum is different what determines their prices also vary extremely”.
Bitcoins are used by millions of users for financial transactions however Ethereum’s price is based on the value of the smart contract running on it. Over the past 2 years, some of the most driving smart contracts of the ethereum networks namely TRON, EOS & other big companies moved out of Ethereum to their own network and also BNB, NEXO is looking for opportunities to move away from ethereum. By the time when this becomes a reality, the price of ethereum will fall severely.
CIPHERX will never let Public Blockchains suffer and will provide support to them continuously. So we came up with the idea of launching a series of DApps that could power every public blockchain and improve their adoption to support the blockchain community. Initially, we rolled out the public beta of our decentralized mailing application and are undergoing various researched. And that research suggested that the price of our first project ethereum will go very high if we get as low as 10k members using it.
How the price will hit $100k?
The myth behind every cryptocurrency are that their price is directly proportional to the number of transactions and the network gas being utilized.
You can analyze the price graph of ethereum here: https://etherscan.io/chart/tx
Now, we can see that the price of the ethereum hit $1500 when the overall hash was 1,62,000 GH and the total transactions hit 125k per day ie., a million transactions a day. But after that ethereum is struggling hard to increase the number of transactions. Each ethereum transaction will cost you 21,000 gas but a single email with just 64 bytes messages is costing you 10x times of the gas fee ie., 2,10,000 gas. You can see that here in our ropsten explorer where we’re researching the application.
So sending one email is equivalent to sending 10 eth transactions. So by using the same calculations with just 10000 users sending 3 emails per day will cost the network to run 300k transactions of ethers which is thrice the number of transactions that happened when there was a crypto bubble and the cost of ether was $1500. Also, this will reduce the rate of mining output and puts the network with a high hash rate making the emissions of ethers slow which will also account for a rise in its price. If we include the image uploads, file uploads, and other functionalities then the gas cost will reach the skies. But it is not useful in the user’s perspective, we’re exploring more options to make this useful for everyone.
For more info visit: https://www.cipherx.org
This report is only for research purposes, the information provided above may be partially accurate or in-accurate, and this doesn’t promote anyone to invest in any of the cryptocurrencies as our interest is to make blockchain a better competitor to existing traditional means.