For the sake of answering this question I will not agonize over how many tokens are in circulation but instead focus on what gives Ether value. It is a fact that the laws of supply and demand are what determine the price of any cryptocurrency.
Ether is not “hard capped” like Bitcoin, but it does have a limited amount of inflation (10% yearly) with updates around coming that will set it to 2%. While Ether is not near as limited as Bitcoin it is still limited enough to keep users from worrying about its inflation rate from destroying their value.
This is where Ethereum shines as an investment. It is useful.
- It is needed to run smart contracts.
- It is needed to send various tokens over the Ethereum network.
- It is needed to use DEX’s and swap out tokens.
- It is needed to interact with a wide variety of DApps.
- It is needed to create, trade, and use NFT’s.
The use cases that Ethereum presents has not even truly been felt by the world yet. Ethereum could completely revolutionize:
- Video Games
- Supply Chains
- Record keeping
- Digital art
- Much more
The supply of Ether is not growing rapidly but the use cases are. If demand increases but supply stays relatively the same (or even goes down when Ether’s inflation rate is dropped) you should expect to see a rise in the price of Ether.
If you are interested in buying Ether check out Coinbase a secure platform that makes it easy to buy, sell, and store cryptocurrency like Bitcoin, Ethereum, and more. Based in the USA, Coinbase is available in over 30 countries worldwide. With Coinbase you can buy Ether with a variety of local currencies and spot trade it for many other coins.
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