Ethereum price history chart

About Ethereum

As a blockchain platform, Ethereum provides a powerful foundation for creating a variety of applications and digital assets. Its native cryptocurrency, Ether (ETH), serves as a means of payment for gas payments related to network interactions. Since its inception in 2015, Ethereum has gained considerable popularity in the crypto market due to its versatility and potential for innovation.

One of the most notable use cases for Ethereum is its ability to facilitate the development of decentralized applications (DApps) and tokens. Using the Ethereum blockchain, developers can create decentralized, transparent, and secure DApps and tokens. This means that these applications and assets operate independently of a centralized authority, reducing the risk of censorship and increasing user privacy.

The brainchild of Vitalik Buterin and several other co-founders, Ethereum was originally proposed in a white paper published in 2013. However, it wasn’t until 2015 that Ethereum was finally launched, offering a new paradigm for blockchain development.

How Ethereum works

Originally launched as a proof-of-work (PoW) blockchain, Ethereum relied on mining to produce blocks. Miners competed in solving challenging puzzles, and the winner was rewarded with a block and a corresponding transaction fee. However, in 2020, Ethereum began to transition to Ethereum 2.0, which involves scaling the network and implementing a proof-of-stake (PoS) consensus algorithm.

Under the PoS system, validators invest a minimum of 32 ETH to ensure the network’s operation and security. This approach reduces the energy consumption associated with mining and ensures greater network efficiency and security.

Ethereum tokens

Ethereum also supports the creation of different types of tokens, including ERC-20 assets and non-fungible tokens (NFTs). ERC-20 tokens are unique assets that run on the Ethereum blockchain, while NFTs are created using the ERC-721 token standard.

These tokens provide developers and investors with new opportunities to create and trade digital assets ranging from utility tokens to collectibles. However, it is important to note that creating a token on Ethereum does not guarantee automatic success, as market demand and acceptance are key factors in determining the value of any token.

The price of Ethereum

Ethereum held its initial coin offering (ICO) in 2014 before launching the Ethereum blockchain in 2015. Initially, in 2016, the trading value of ETH was less than $10 per coin. However, over the years, the value of ETH in terms of US dollars, or ETH to the US dollar, has increased significantly. In 2021, it reached a record high of over $4,500 per coin. Despite this upward trend, the price of ETH has also shown significant volatility, just like other cryptocurrencies.

When analyzing the Ethereum blockchain, another important metric to consider is the Ethereum gas fees. These fees have become a notable burden in 2020 and 2021, which has affected the Ethereum gas price.

Supply and demand of Ethereum

Ethereum has a different approach to coin supply compared to Bitcoin, which has a limited supply of 21 million coins. In Ethereum, there is no limit to the total supply of ETH, although in 2018 there was a proposal to limit the number of coins to 120 million. Instead, there is an annual limit.

The Ethereum Foundation controls the Ethereum blockchain and ecosystem and states that ETH is “being issued at a constant annual linear rate through the blockchain mining process” at 0.3 times the total amount of ETH purchased during the 2014 crowdfunding campaign. Since about 60 million ETH were issued during the previous sale, no more than 18 million ETH can be issued annually. However, this annual amount can be issued indefinitely.

While the supply of ETH will continue to expand, the rate of growth will decrease over time due to the fixed nature of the coin’s issuance. Therefore, Ether is not considered an inflationary asset, but rather a non-inflationary currency, which means that its inflation will decrease over time.

In 2021, the Ethereum London update brought several new features, including burning a certain amount of ETH based on transactions.

How to buy Ethereum

In 2023, buying Ethereum is relatively easy and there are various ways to do so. Here are a few options:

• Cryptocurrency exchanges are online platforms that allow users to buy, sell, and trade cryptocurrencies, including Ethereum. Some popular exchanges include Binance, Whitebit, OKX, Mexc і Huobi. To buy Ethereum on an exchange, you usually need to register an account, provide identification information, and link a payment method such as a bank account or credit card. Once your account is verified, you can place an order to buy Ethereum for fiat currency or another cryptocurrency.
• Peer-to-peer (P2P) markets: P2P marketplaces allow users to buy and sell cryptocurrency directly with each other, without an intermediary. Some popular P2P platforms include Paxful. To buy Ethereum on a P2P platform, you need to find a seller who is willing to sell Ethereum at the price and payment method you prefer. Once you agree on a transaction, you send the payment to the seller and they send you the Ethereum. The exchange is also popular with the authorities of P2P platforms.
• ATMs: Some cities have Ethereum ATMs that allow users to buy Ethereum for cash. To use an Ethereum ATM, you generally need to have an Ethereum wallet and scan the QR code on the ATM with your phone. The ATM will then issue the purchased Ethereum directly to your wallet. Here is a map of crypto ATMs.
• Over-the-counter (OTC) exchanges: OTC exchanges are typically used by wealthy individuals and institutions to buy or sell large volumes of Ethereum without affecting the market price. Popular OTC exchanges include Genesis and Circle Trade. To become a client of an OTC exchange, you need to have significant capital and go through a verification process.
• Online exchangers: Online exchange services are also very popular, they can be found both on regular websites and in messengers, in particular in Telegram. In order not to send your money to the fraudsters, use the aggregator of exchangers BESTCAHNGE.

It is important to note that each of these options has its advantages and disadvantages, so it is very important to do your own research and choose a reliable platform or service. Also, be aware of any fees associated with buying Ethereum, such as trading fees, network fees, or transaction fees.

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