What will most likely happen to the price of Ethereum if/when Casper takes place?

in #ethereum7 years ago

The price of ethereum should increase for two main reasons. One, the lock up mechanism of staking ether will decrease the functional supply available on the market. With less sellers on the market, there will be upward pressure on price. Two, there will be a built in appreciation mechanism. What would you pay more for, pure gold or a special form of gold that literally grows while it's sitting in the vault?

One potential factor that could decrease the price of ether under Casper is mining costs. Currently, mining costs are accounted for in the price of ether because they are part of the cost of production. A move away from mining means a move away from suppliers with significant electricity costs, effectively making ether “cheaper to produce.”

My opinion is that the latter is a relatively minor factor in price compared to the first two. In the same way that additional copies of computer software and digital media and trading cards are cheap to produce, asset prices in the modern age are less and less dependent on the cost of production.

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Do you think another scenario could be a loss of interest in Ethereum when there is the shift away from mining to Proof of Stake?
People being able to mine ether themselves and then trade it for other cryptos or fiat I believe contributes to the popularity as well just like it does with other coins.
It may not be a huge price contribution once casper arrives but it could hinder peoples interest especially if they are arriving late to the party.

One positive contributing factor could be the ICO's getting to a point where more of them start completing their projects and proving the system works.

Thanks for the thoughts @pynetx

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