Ethereum Grows In Acceptance – What does It Mean For ETH/USD?

Ether has had an interesting history in terms of its price. Like many cryptocurrencies, it had a steep rise in price before falling down. Ether’s peak price came in January when it reached its all-time high of $1,376.62 before tumbling down to its price today which sits around a mark of $499 (as of 18 July 2018).

Many currencies, though, have had to take such a fall and it’s how they recover that is going to be the fascinating part. While Ether has experienced that plunge as well, the future looks promising for its potential to gradually increase in its ETH to USD rate.

Acceptance is growing

Ether is one of the most used cryptocurrencies in the world and is growing in acceptance with institutions showing an increasing interest in utilizing the Ethereum platform.

It hasn’t been long since Ethereum started striking up partnerships with such companies as Mastercard, Samsung, Intel and Microsoft who had shown an interest in their technology. But hopefully, more are to join. The smart contracts functionality will allow businesses to deal with each other in a completely different way, which is a great sign for the ETH/USD rate that would only improve on the back of such news.

Still, whether Ethereum is the best platform that offers smart contracts could be debated, Ether is by far one of the most promising currency in terms of utility and applicability. That puts Ethereum in a great position in the cryptocurrency market and works to its advantage.

Why will Ethereum become accepted?

Sooner or later, cryptocurrency will be accepted in modern society much in the same way that fiat currencies are today. That’s due to the fact that they hold a set of distinct advantages over the online payment methods that we see today. One of those is with transaction fees, which can be up to 3.5% as it stands. Those costs are never directly seen by the customer, but they are naturally built into the price you pay.

With currencies like Ether, these fees are minimal, so they will allow companies to either charge what they currently do and increase their profits, or reduce their prices to beat the competition. Either way, companies will be tempted by the low costs of Ether.

They will also be tempted by its security too, as transactions over the Ethereum network would be incredibly more secure than the current payment methods, especially with credit cards. That’s because cryptocurrency transactions are recorded over countless computers which keep the ledger safe. Companies would only see this as a benefit to them.

The smart contracts mentioned above also make sure the transactions work a lot more intelligently as well. You can program them to be executed only when a certain set of conditions have been met by each party. This keeps everything safe and secure and will help prevent fraud and manipulation. In this way, users will have a complete control over their money and don’t have to rely on a bank or financial institution to verify the transaction.

So why isn’t it widely accepted now?

When something comes along that fundamentally changes the way that people live, it’s rarely instantly accepted as a great thing. There is generally a lot of skepticism about it, and it takes people a long time to learn how this can benefit them.

While this is true for most things in life, it’s never been truer for cryptocurrency due to just how few people in the world know what it actually is and how it works. What percentage of people in the world do you think know what Ethereum is? You can only speculate but you know that the figure would be extremely low.

But for cryptocurrency to become universally accepted, it’s not only people who need to know what it is and start to trust it, the governments should also take a favorable view of the emerging technology and start accepting cryptocurrency as a legal method of payment.

What does all this mean for the ETH/USD rate?

Well, it means Ethereum might have to play the long game, a patient game. It has the innovative technology behind, and now it just needs the world to realize its potential. This is true for quite a few online currencies that are hoping the revolution comes sooner rather than later.

In all honesty, it’s doubtful that crypto is going to be accepted in that way anytime soon, it’ll take a number of years at least. There is short-term hope though. If Ethereum continues developing significant partnerships then this will no doubt increase the ETH/USD rate and get even more people interested in investing in Ether. While Ethereum may have slumped from its early year high, the future signs are good.

A bright future for Ethereum

There are many currencies aiming to be used by major companies, and Ether will be desperate not to miss the boat. In the short and medium term Ethereum will be looking to attract more partnerships, and in the longer term, it might be translated to an ever-growing number of people using Ether as a regular currency.

If Ethereum plays it right and stays the biggest and the most user-friendly platform for running smart contracts, then there is no reason why the ETH/USD rate can’t keep improving over time and help lead crypto from the shadows into the modern financial world.

Submitted by Mary Ann Callahan

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