Technology

A week of losses for ethereum: the price of ether for this May 11

Ethereum is one of the most coveted cryptocurrencies in the digital market (Illustration: Jovani Pérez/Infobae)
Ethereum is one of the most coveted cryptocurrencies in the digital market (Illustration: Jovani Pérez/Infobae)

The ethereum cryptocurrency is the second most important digital currency in the market, only behind bitcoin, reason enough for the daily update of its price to be relevant.

The last week has not been the best for ethersince it has recorded losses from which it has not been able to recover.

Created in 2015 by programmer Vitalik Buterin, Ethereum is a blockchain platform with open access to digital money and information services.

Ethereum allows you to send cryptocurrencies to anyone for a small commission, while offers financial services, games and applications They can’t steal your information or censor you. To run the ethereum platform, its native cryptocurrency called ether and identified with the initials ETH.

Currently ethereum performs 90 transactions per second, which will increase to 100 thousand per second when your transition to ethereum 2.0. There are several changes with the update, however, the main one is the way ether transactions are validated.

In the current version it is via “miners” who earned cryptocurrency by solving complex mathematical problems, but spending a lot of energy in the process. Now there are no “miners”, but transaction validators who are selected according to how many ether units they have and how long they have been investing. This process is known as “forge” either “minted”.

Being a currency, the value of ether -like any other currency- undergoes constant changes, so it is important to stay updated.

In January 2016, for example, the cryptocurrency of ethereum reached the dollar per unit, while in its historical maximum managed to be sold at 4,891.70 dollars per unit.

In the last seven days, ethereum has recorded sharp declines.

Made with Flourish

It started on May 5th topping $2,900 per ether, but that same day it fell twice, first to the 2,740.25 before noonthen went down a little more to the $2,710.63 past noon.

The next day, May 6, its value continued to decline as it was listed on $2,645.34 during the morning. The cryptocurrency remained stable until the night of May 7 when its value fell to $2,539.74.

On May 8, ether continued its fall by selling at 2,435.73 dollars per unit and at 2,208.75 dollars the day after.

Finally, this May 11 continued to fall during the morning when trading in 2,170.84 dollars, of which it has not been possible to recover.

At the moment, the ether is valued at 2,051.32 dollars per unit, which means a negative variation of 11.64% in the last 24 hours, as well as a downward change of 2.69% in the last hour.

This means that Ethereum cryptocurrency lost almost $800 of its value in a week.

Market popularity remains for the ethereum cryptocurrency which remains in second place only behind bitcoin.

(Photo: REUTERS/Dado Ruvic)
(Photo: REUTERS/Dado Ruvic)

Cryptocurrencies are digital assets that do not physically exist and, unlike currencies such as the dollar, the euro or the peso, they are not regulated by any institution and do not require intermediaries in transactions.

Consequently, they are regularly not viewed favorably by the formal market and they are accused of being unreliable, volatile, promoting fraud, not having a legal framework that supports its users, allow the operation of illegal activities, among others.

Nevertheless, little by little they have opened the way to such an extent that companies, millionaires and even governments have encouraged or authorized its use.

These cryptocurrencies work through cryptographic encryption that guarantees the security of transactions, as well as the control of the creation of their coins. To carry out transactions, cryptocurrencies use a decentralized database, blockchain or shared ledger.

Currently there are different cryptocurrencies in this unregulated market, however, the pioneer was bitcoincreated in 2008, with it came others such as litecoin, ethereum, bitcoin cash, ripple, dogecoin and MOON some of the most popular.

One of the richest men in the world, Elon Musk, He has made comments in favor of cryptocurrencies such as bitcoin and dogecoin, encouraging their use and even accepting them in his electric car company, Tesla, which has caused their value to increase.

In El Salvador, the president Nayib Bukele legalized bitcoin, being the first country to do so.

While in Mexico, one of the wealthiest businessmen in the country, Ricardo Salinas Pliegohas made public its intentions to accept cryptocurrencies in its businesses – its main store, Elektra, already does so – and is making efforts so that the same thing happens in its bank.

(Photo: REUTERS/Dado Ruvic/Illustration)
(Photo: REUTERS/Dado Ruvic/Illustration)

To acquire any of the cryptocurrencies that exist in this unregulated market, you have to go to specialized portals.

It is worth mentioning that the cost of each of these digital currencies varies depending on supply and demandas well as the commitment of the users themselves, which can cause abrupt changes.

This means that the more people are interested and want to get hold of a certain cryptocurrency, the higher its value will be and vice versa.

It is worth mentioning that those who invest in this type of digital assets must be very clear that this form brings with it a high risk to the capital, as well as there may be an increase, it may also have an unexpected collapse and end the savings of its users.

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