Ethereum Crypto is based on a decentralized system, which has its own blockchain network, which went live in 2015. It is also called ETH for short. When the Ethereum Network went live in 2015, an Ethereum Crypto Coin was worth less than $3. Then its price increased and went on increasing, by the time 2021, the value of this coin increased to more than $4500. So it is clear from this that Ethereum Crypto Coin has given more than 1000 times returns to its investors.
Many people consider Crypto Coin to be gambling but this is not the case with all Crypto Coins. Just like behind any stock in the stock market, there is a business of that company, in the same way, behind every Crypto Coin, it has a unique purpose. For example, you can use some Crypto Coin for payment and some Crypto Coin can be used to maintain and manage Internet Infrastructure, and Crypto Coin is created for many such purposes.
Like before investing in any stock, we see the business of that company and to analyse any crypto in the same way, we have to understand the purpose behind that crypto. If that technical purpose has scope in future then automatically that Crypto Coin will also have scope in future and its price will also increase in future. On the other hand, if the purpose or application of a Crypto Coin is not so strong and it does not have scope in the future, then such Crypto Coins run completely on guesswork. If you see the purpose of Bitcoin, then its purpose is digital money i.e. you can store money in digital and in the same way the purpose of Ethereum is decentralized computing platform i.e. here Ethereum is not a digital money Crypto Coin but it is an Infrastructure Crypto Coin. Is.
Ether is used to use and run Ethereum Blockchain Technology, just as the U.S. dollars is used to make payments in America and INR is used to make payments in India, similarly Ether is needed to make payments in Ethereum's blockchain technology. If someone wants to take service or provide service on Ethereum's network, then payment will have to be made there in the form of Ether.
So we have to understand here how the price of Ether is decided. If you see the current scenario then U.S. Dollar is the most powerful currency in the world because almost all countries except dollars and most of the international trade that happens in U.S. dollars only. Accordingly, people from all over the world transact in currencies 24 hours a day and in the same way the value of these currencies fluctuate and the price is also determined. Similarly, people will use Ethereum's network or build applications. The more busy Ethereum's network is, the more its value will increase.