Ethereum and other cryptocurrencies: this is their value in the market

Ethereum and other cryptocurrencies: This is their value in the market

The cryptocurrencies have had a boom in recent months motivated, in addition to the coronavirus pandemic, by certain billionaire characters -such as Elon Musk- and governments that have chosen to give them a boost as legal tender.

Given this scenario, more and more people have decided to acquire cryptocurrencies with the hope of having a medium and long-term investment, despite the volatility that characterizes them.

Here we bring you the price of the main cryptocurrencies for this March 12, 2022:

Bitcoin

Price: $39,022,359

Change: 0.33%

Ethereum

Price: $2,580,917

Change: 0.58%

Tether US

Price: $1

Change: -0.05%

BNB

Price: $374,631

Change: 0.66%

Litecoin

Price: $106,398

Change: 1.17%

Dogecoin

Price: $0.116

Change: 0.54%

What is a cryptocurrency?

A cryptocurrency or cryptocurrency it is a digital medium of exchange (does not physically exist) who wears a crypto encryption that ensures the integrity of transactions and maintains control over the creation of new units.

The first cryptocurrency to be born was bitcoin.in 2009 and since then others equally known as litecoin, ethereum, bitcoin cash, ripple, dogecoin, among other.

Cryptocurrencies have various characteristics that make them unique, such as the not be regulated or controlled by any institution, they do not require intermediaries in transactions and accounting blocks are used to prevent new cryptocurrencies from being created illegally.

However, by not having regulators such as a central bank or similar entities, they are pointed out not being reliable, being volatile, promoting fraud, not having a legal framework that supports its users, allowing the operation of illegal activities among others.

To acquire them, you can buy or exchange the currency itself in specialized portals. Its value varies depending on the supply, demand and commitment of users, so it can change faster than traditional money, but the more people are interested and want to buy a given currency, the higher its price.

However, whoever invests in this type of digital assets must be very clear that this form brings with it a high risk to capital. Well, just as there may be an increase, there may also be an unexpected crash and end the savings of its users.

Bitcoin
Bitcoin

The bitcoin boom

Born after the financial crisis of 2008, bitcoin promoted a libertarian ideal and aimed to put the monetary institutions in check and traditional financial It was devised by someone named Satoshi Nakamoto, but today his identity remains hidden.

According to a book published by Satoshi Nakamoto, the purpose of cryptocurrency was “make online payments directly from one third party to another without going through a financial institution”.

This is how on January 3 of 2009, he created the first block of 50 bitcoins. Currently, there are 21 million bitcoins in circulation and the monetary mass does not stop increasing with the continuous emission of new units.

In 2013, bitcoin, which was worth almost nothing at its inception, surpassed $1,000 and began to attract the attention of financial institutions. Months later, he faced his major crisis with the hacking of the MtGox platform directed by Mark Karpelès, where up to 80% of the units in circulation were exchanged.

Prices fell and it took three years for the cryptocurrency to recover. At the end of 2017, a new rally placed its value at $19,511. Today its price has exceeded 62 thousand or fallen to 35 thousand, also influenced by comments from investors like Elon Musk.

Despite the progress and scope that Bitcoin and other digital assets have had, organizations such as the World Bank, the International Monetary Fund (IMF) and the Inter-American Development Bank (IDB) are still skeptical about the possible benefits of this type of cryptocurrencies.

Others, like the government of The Saviorhas given him his vote of confidence and on June 9, 2021 became the first country to legalize bitcoin as legal tender. In addition, President Nayib Bukele announced his intention to create the first Bitcoin City in Conchagua and it would be financed through tokenized bitcoin-backed bonds.

Cryptocurrencies, an alternative in the Russian-Ukrainian conflict?

As the Russian invasion of Ukraine tensions have also grown in the financial markets, where neither cryptocurrencies have managed to escape the shocks that have led them to have mixed behavior in recent days.

Behind the wave of economic sanctions against the government of Vladimir Putin, there are several bets that Russia will use these digital currencies to cope with punishment.

As a result of the Russian-Ukrainian conflict, the purchase of cryptocurrencies in rubles has skyrocketed, reaching all-time highs. Just bitcoin has registered increases of 15% with a value of up to 44 thousand dollarsthis in a context in which the convenience of a currency not regulated by any body is being evaluated.

And it is that recently Russia and its main financial institutions have suffered the attacks of the exclusion from the SWIFT interbank system, this added to the recent ruble crashes keeping Russian citizens on edge and the asset freezes imposed by the European Union and the United States.

Given this scenario, the Russians have turned to cryptocurrencies, following the example of other nations such as North Korea and Iran, but they do not only resort to Bitcoin, but also to Tether.

However, others such as Coinbase, Binance and FTX have chosen to turn their backs on the country and collaborate with the United States instead.

The use of cryptocurrencies has not been limited to Russia either, since the Ukrainian government has also received up to $17.1 million in these digital currencies, according to an analysis by Elliptic.

However, just as the cryptocurrencies have had rises, the great speculation that is currently in the markets has caused it to also have significant crashes such as the -8.5% of Bitcoin, -12% of Ethereum, as well as further downgrades from XRP, Cardano, and Solana, further confirming their risky status.

Ben Oakley
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