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Ethereum does not stop its fall: what is the cost of ether this May 12

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)

Several of the cryptocurrencies most important in the digital market are not having their best moments. Currencies like bitcoin, MOONBNB and solana record significant losses. Also in this group is ether, the cryptocurrency of ethereum.

Ether is the second most important digital currency in the marketmeanwhile, ethereum is a blockchain platform with open access to digital money and information services that allows you to send cryptocurrencies to anyone for a small fee, while offering financial services, games and applications that cannot steal your information or censor.

To run the ethereum platform, your ether cryptocurrency is required and identified with the acronym ETH.

Ethereum is in this crisis in the middle of an update, in which it seeks to reach a version 2.0. There are several changes in this update, however, the main one is the way ether transactions are validated.

In the current version it is through “miners” who earned cryptocurrencies 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 “forging” or “minting”.

The value of ether had not dropped below 2 thousand dollars in all of 2022 (Photo: REUTERS/Dado Ruvic/File Photo)
The value of ether had not dropped below 2 thousand dollars in all of 2022 (Photo: REUTERS/Dado Ruvic/File Photo)

This May 12 the price of ethereum cryptocurrency reached its lowest value so far this year.

The ethereum cryptocurrency had not decreased beyond 2 thousand dollars per unit during this 2022 and it did so on the night of May 11, reaching its lowest level in the early hours of this Thursday.

Shortly after 2:00 a.m., the value of ether fell to 1,748.3 dollars per unit.

In the last few hours, it has managed to recover a little ground and the ethereum digital currency was once again above 2,000 dollars, although far from its value a week ago, when it almost reached 3,000 dollars per unit.

Ether is currently trading at $1,918.30which means a drop of 6.98% in the last 24 hours and a negative change of 1.07% in the last 60 minutes.

Ethereum crash started on May 5at that time its value exceeded 2,900 dollars per ether, but that same day it fell twice, first to the $2,740.25 before noon, then went down a little further to the $2,710.63 shortly after 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 the day after.

On May 11, it continued to drop in the morning, trading at $2,170.84in mid-afternoon the fall continued when it was valued at $2,051.32 per unit. By Wednesday night, its value was already less than $2,000.

Made with Flourish

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 are accused of being unreliable, volatile, promoting fraud, not having a legal framework that supports their users, and allowing the operation of illegal activities, among others.

However, little by little they have opened the way to such a degree that companies, millionaires and even governments have encouraged or authorized their 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 bitcoin, created in 2008, with it others such as litecoin, ethereum, bitcoin cash, ripple, dogecoin and LUNA emerged, some of the most popular.

FILE PHOTO: A graphic lights up representations of the virtual currency bitcoin in this illustration taken March 13, 2020. REUTERS/Dado Ruvic
FILE PHOTO: A graphic lights up representations of the virtual currency bitcoin in this illustration taken March 13, 2020. REUTERS/Dado Ruvic

One of the richest men in the world, Elon Musk, 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, 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 Pliego, has made public his intentions to accept cryptocurrencies in his businesses – his main store, Elektra, already does so – and making efforts so that the same thing happens in your bank.

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 demand, as 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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