In order to understand how much a Ethereum coin is worth, one must first understand what Ethereum is. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. In the Ethereum protocol and blockchain there is a price for each operation.
These prices are abstracted away from the user by the network and are known as “gas.”Gas has two primary purposes: (1) to prevent spam on the network and (2) to allocate resources proportionally to the incentive offered by the requestor, thus reflecting the true value of the service.
Prices are denominated in units of gas. For example, the average gas price during January 2018 was around 10 GWei. This means that each operation on Ethereum cost, on average, 0.
0000001 ETH. The unit of account for gas is thus Wei, and 1 ETH = 1,000,000,000 GWei (10^9).
The price of ETH has fluctuated greatly since its inception in 2015. In early 2016, one ETH was worth around $1 USD. By the end of the year, it had increased to $10 USD. In early 2017, ETH prices began to increase rapidly as demand for ICOs (initial coin offerings) increased.
NOTE: WARNING: Investing in cryptocurrency can be a highly risky endeavor. Ethereum coins, like any other cryptocurrency, are subject to extreme volatility and changes in market conditions. Before investing in Ethereum coins, you should research the market and understand the risks involved with investing in cryptocurrency. You should also consider speaking with a financial advisor before investing.
This trend continued throughout 2017, with ETH reaching an all-time high of over $1,400 USD in January 2018. Since then, prices have fallen somewhat but remain volatile. As of June 2018, one ETH is worth around $500 USD.
It is important to remember that the price of ETH is not set by Ethereum Foundation or any other central authority; it is set by free market forces of supply and demand. The amount of ETH available for purchase depends on whether holders are willing to sell or trade it at a given price; if no buyers are willing to pay the asking price, then the price will fall until someone is found who is willing to transact at that level.
Ethereum coins are worth whatever people are willing to pay for them. This can be affected by a variety of factors including media attention, innovation within the Ethereum network, and overall market conditions.
Prices are volatile and tend to fluctuate rapidly; this means that investors must be careful when considering purchasing Ethereum coins.
5 Related Question Answers Found
The value of Ethereum has fluctuated wildly in its short history. At its launch in 2015, the price of one ETH was just $0.43. In the years since, the price of Ethereum has reached highs of over $1,400 in early 2018 before dropping back down to around $200 in 2019. 2020 has seen a resurgence in the price of ETH, with it reaching over $700 at the time of writing.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. In 2014, Ethereum founder Vitalik Buterin proposed that Ethereum could be used to build “decentralized applications” (dapps). Dapps are open source and run on a blockchain, usually Ethereum’s, with each dapp having its own token.
In order to understand how much a coin on Ethereum is worth, one must first understand the basics of the Ethereum network. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ether, sometimes called “Ethereum gas”, is the cryptocurrency that powers the Ethereum network.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ether, the native cryptocurrency of Ethereum, is mined through a Proof of Work (PoW) consensus algorithm (like Bitcoin). Miners are rewarded based on their share of work done, rather than their share of the total number of blocks mined.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ether is the native cryptocurrency of the Ethereum platform. It is used to pay for gas, a unit of computation used in transactions and other state transitions.
