If you haven’t heard of Ethereum coin yet, you may be wondering what it is and how it works. While this cryptocurrency is a relatively new one, it is already affecting many markets. India, for example, recently lifted its ban on cryptocurrency and made it possible for millions of people to use it.
In the United States, regulators are still trying to draft legislation to regulate cryptocurrency. A proposal called the Crypto-currency Act of 2020, by Rep. Paul Gosar, attempts to regulate the digital assets in a comprehensive manner. The legislation aims to define different categories and clarify the federal agencies that will regulate different aspects of the industry. Despite the recent bearish news, however, Ethereum is expected to continue to do well as an investment asset.
Ethereum’s price has been on a downward trend since Dec. 27, but many experts remain bullish. They believe the price could rise over $12,000 this year. As long as the supply of the currency is not hard-capped, it is likely to continue to rise. But, as with many other cryptocurrencies, there will be volatility.
Ethereum is a decentralized platform based on blockchain technology. It uses a digital currency called Ether to process transactions and issue new crypto assets. It is the second largest cryptocurrency in terms of market cap behind Bitcoin. Ethereum can be used to run various applications and is known for its low risk of fraud and third-party interference.