The average number of daily Ethereum transactions is keep on growing.
Ethereum never stops to surprise us. Generally, the number of daily transactions follow the same trend of the coin price: if the price grows, the number of daily transactions grow; if it falls, the number of daily transactions falls too.
This is not a rule, simply generally cryptocurrencies follow this. This is easily explained: the Cryptocurrencies Economy is a very young industry. Everything started in late 2009, with Bitcoin born, anyway the most part of the coins out there are younger than 2 years old. This means that the major part of the daily transactions is made for speculative reasons: send X coin to exchange, sell them, buy another, send back the rest to your wallet.
Anyway, seems that Ethereum doesn’t care about it.
The Ethereum price, after a great growth, is slowly settling. This is completely normal and physiological: who bought Ethereum to make a profit sell his assets to don’t loose the gain earned, who bought Eth because belief in technology (or simply is a long-term investor) simply don’t care about daily price and use Eth to finance a project (there are tons of new ICO out there, the last coin founded was COSMOS) or simply take his coins into his wallet. Result: the price “slowly” find its equilibrium, and the number of daily transactions decreases.
Now, the strange thing with Eth, is that, even if its price is falling, the number of daily Ethereum transactions keeps on growing.
This generally happens with Bitcoin: there are several business and merchant who daily accepts bitcoin, and, overall, the major part of cryptocurrencies need bitcoin to be bought. Bitcoin has a well build system of user-friendly services: you can easily buy and storage bitcoins using your smartphone, sending cheap and fast Bank Transfer, and use it to buy a large number of service (every day there are new companies who accept bitcoin).
Anyway Ethereum doesn’t have any of this:
- Ethereum doesn’t have a user-friendly wallet (ok, if you are quite confident with cryptocurrencies world you are ok, but try to think to a complete noob user).
- Ethereum doesn’t have several and user-friendly gateway service like bitcoin: you can send a bank transfer, withdraw cash directly using an ATM, load funds into your debit card etc. Ethereum (still) doesn’t.
- Several well-known companies accept Bitcoin as a payment method (ex: Steam, Microsoft etc.). Quite no company (for now) accept Ethereum.
What does it mean? It means that Ethereum Network, even if it is a quite new technology, has already built a solid base of daily users. The network of Ethereum tokens (like Golem, Augur etc.) seems to generate a not-to-big but constant flux of eth. Every day, more people understand that the actual problems of bitcoin’s transactions are REAL problems, not philosophical threads, and if you want to move your funds in a fast and cheap way, bitcoin isn’t the only solution.
Actually, there are three (not one, three) user-friendly Ethereum wallet under development. I’m sure that before the end of the year, several user-friendly services to process and easily manage Ethereum will be born. These services will inevitably increase the number of daily ethereum transactions. I’m sure that the constant flux of eth used combined with every-day services (ex: Debit Card) will increase exponentially the use of Ethereum, with a consequent increase of its price and value. Rember that a bigger number of daily transactions means not only an increase of value but a smaller volatility.
Bitcoin community should stop discuss futile philosophical questions and start resolving the practical problems that afflict the network (max number of transactions, high fee, slow transactions). The only responsible of this situation is the actual bitcoin “governance” who, in name of a fake democracy is poisoning the most (and the first) innovative technology of the century. If not, when the mere mortals will understand that bitcoin is not the only option available, and the giant flux of capital injections stop, we will see what the market chose.