Factors that influence the Ethereum price
In this article, we are going to discuss the Ethereum price factors, the creation of the network, the crypto-coin and the concept of smart contracts. We are also going to focus on explaining the process of buying Ethereum with AUD on a local exchange platform in Australia.
What is Ethereum?
Ethereum is a decentralised, open-source platform operating on the Blockchain network, which enables programmers to construct decentralised applications. The apps are created to serve concrete, particular purposes to the users. They function on a Turing-complete Ethereum Virtual Machine (EVM), which is run by an international public network of nodes.
The Ethereum network was built on Vitalik Buterin’s concept introduced in his white-paper in 2013. In his paper, Vitalik Buterin explained that the Blockchain network itself is more significant than cryptocurrency, and decentralised apps could change the way we do business online, in more spheres than one. He envisioned that we could use smart contracts for:
- Identity and reputation systems
- Token systems
- File storage
- Financial derivatives
- Prediction markets
- Centralized autonomous organisations
- Cloud computing
- Data Feeds
The Ethereum network was created in 2014 through a public crowdsale, where contributors could buy the Ethereum value token (Ether) with another digital currency, Bitcoin. Ethereum was founded through a Swiss company, Ethereum Switzerland GmbH, and later a non-profit foundation, the Ethereum Foundation, was also created as part of the network.
What is a smart contract?
A smart contract is code, plain and simple, but the function of this code is to execute an order automatically when the predetermined conditions are met. Smart contracts are a massive success for everyone who runs a business by contractual compulsions. When every obligation or benefit is calculated and performed by design according to the prescribed conditions, that means that it will be fair and unbiased.
Smart contracts managed to do for business something traditional law could never offer, such as timelines and efficiency without third-party interference. The future development of Blockchain technology is closely tied to the lack of manipulation in inter-partes transactions.
“Blockchain solves the problem of manipulation. When I speak about it in the West, people say they trust Google, Facebook, or their banks. But the rest of the world doesn’t trust organisations and corporations that much — I mean Africa, India, Eastern Europe, or Russia. It’s not about the places where people are really rich. Blockchain’s opportunities are the highest in the countries that haven’t reached that level yet.”
- Vitalik Buterin, Ethereum Founder
What is Ether?
You have to pay somehow for the smart contracts and applications you’re using, which is why the Ethereum network created its cryptocurrency known as Ether. The Ether (ETH) is the “gas” on which the decentralised system runs. Ether is priced and traded on virtual exchanges around the world, and it has the second biggest market cap after Bitcoin.
How is the Ethereum price formed?
Another significant question is how the Ethereum price is formed on the market. The most obvious answer, at least for the Ether, is the value of the technology behind it, and the potential it has for further development in the future. People today tend to invest in projects with technological potential and hop on the wagon early on. As it was shown with Bitcoin, the earliest investors made huge profits in the 2017 price boom.
Furthermore, there is the classic dynamic of supply and demand that governs the market and the price of the Ether. If you are not a risky trader, this investment might be more suitable for you, because the Ether price is far more stable than the Bitcoin price on the market.
ETH to AUD
If you are interested in trading Ethereum on the market, you should familiarise yourself with the trading language. ETH is an abbreviation for Ethereum or the ticker symbol listed on the exchanges, which helps you identify the prevalent trading commodities on the platform. If you wish to buy Bitcoin, for example, you should search for the BTC ticker symbol.
Buying ETH with AUD is a prudent way to avoid additional conversion charges and save money if you are based in Australia and AUD is your local currency.
Local exchanges: Ethereum to AUD
If the goal is to purchase or sell Ethereum with AUD, we should inform you about the benefits of using a local cryptocurrency exchange.
- No conversion fees
- Legal protection
One of the most important factors is the legal framework. Australia started drafting laws and policies regarding the cryptocurrency realm, and as an Australian resident, you are subjected to those laws, and so is the exchange. You have legal protection when you are trading on an AUSTRAC registered platform, and that makes the process of buying and selling any crypto-coin easier and safer.
Use Blockbid to buy Ethereum in Australia
If you decided to buy Ethereum in Australia, you should take a look at Blockbid, a secure online exchange registered with AUSTRAC. Blockbid facilitates the trading of more crypto-coins on a single platform than any other exchange in the world, and it features a 0.1 percent fee for fiat currencies (AUD, EUR and USD) transactions.
Your assets will be safe because deposits are stored in an offline multi-signature hardware vault, and Blockbid is also one of the first platforms that are fully covered by cybersecurity insurance. The interface is elegant, intuitive and beginner friendly. The exchange can perform up to 1 million transactions per second.
Ethereum to AUD price on the market
Since the writing of this article, the Ethereum to AUD price on the market is 984 AUD. The market cap is 97,684,571,287 AUD, and the current circulating supply is 99.2 million coins, with total volume exchanges of 2,594,697,712 AUD. The Ethereum price has a steady growth since it was first introduced to the market. The value of the Ether (the crypto-coin) is closely tied to the development of the Ethereum network, and its future perspective.