Etherum Loses 15% As Investors Worry About Network Growth
By Daisy Joseph
Ethereum, also popularly called as Ether is the next generation digital currency that was introduced as a rival to Bitcoin. Bitcoin has been in the market for a few years now facing many ups and downs. The digital currency has gained almost 180% after its launch. The Ethereum currency is also rapidly gaining as it gained about 3000% in just one year.
On Wednesday, Ethereum lost more than 15% even though the demand for the digital currency increased. Investors are worried about network upgrade, the failure of which will result in problems dealing with Ethereum. It was trading at a slightly lower value of $328. However, many trades with the price of $300 were queued later for the day.
Similar to Bitcoin, Ethereum is also based on blockchain technology which uses a fixed record keeping system that facilitates quick exchange of cash irrespective of the country. Ethereum is much better than Bitcoin as it supports applications. It paves the way for a decentralized system which is considered as the next generation Internet technology.
Recently, a messaging app called Status based on Ethereum spiked interest among the investors. The increase in the number of transactions for the funding launch clogged the network and many were not able to withdraw their funds. The queued transactions overwhelmed the network capacity, resulting in chaos. Understandably, the value of Ethereum declined sharply as the developers were unable to match network growth with demand as of now.
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