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Pending Ethereum hard fork to fuel wider rally?

Tony Zerucha

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Ethereum’s price will “continue to soar” throughout 2019 – and a main driver of the continued rally will be this week’s hard fork, Thomas Crown Art’s Ian McLeod believes. Thomas Crown Art employs Ethereum smart contracts to provide provenance, an immutable ownership chain and to allow new works to become value storage devices.

Mr. McLeod’s optimism stems from Ethereum’s recent history. 

“Ethereum has made a bullish move and broke the $125.00 resistance – giving the crypto naysayers and doom-mongers a robust signal that this digital currency is on the upward trajectory once again. Ethereum’s rally is part of a wider cryptocurrency rally since the beginning of the year, with other major coins, including Bitcoin and XRP, also securing important gains.

 “The bulls are back in town.”

While traditional markets are headed for bear territory, Mr. McLeod expects digital assets to head in the opposite direction for three reasons.

“First, the hard fork set to take place on 16 January.  The hard fork will mean Ethereum miner rewards fall from three ether to two and decrease the block time, resulting in a faster network. This is a key part of a major Ethereum upgrade and the markets are excited. There’s a possibility the date of the hard fork might be pushed back a little, but traders are managing this into expectations.

“Second, oracles. Oracles – data feeds that deliver information into the smart contract from third parties – will inevitably drive adoption of Ethereum smart contracts. This is because smart contracts using decision-making on real-world metrics can be expected to find relevant use cases among consumers, firms, and organizations, amongst others. And, of course, as adoption and utility of Ethereum smart contracts increase, so will Ethereum’s price.”

That run will have spillover effect, he suggests.

“The sentiment data and technical analysis suggests that Ethereum’s rally, to be fuelled further by the hard fork, will continue in the short to medium term. 

“It is likely that this will positively impact on the rest of the cryptocurrency sector.”

Thomas Crown Art is already a global pioneer in using Ethereum smart contracts.

“Using an Ethereum blockchain to authenticate artwork is an ideal use-case for distributed ledger technology,” Mr. McLeod explained. “It provides the ability to store a permanent, immutable record of artwork at the point of creation which can be used to authenticate registered works by any third party independently.”

 

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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