We all know how volatile cryptocurrencies market is, so there are more than one factors that are influence the price of digital currency. Ethereum is decentralized software platform, based on smart contracts with the main idea that users of this platform could be funded for their ideas and projects with the Ether, officially currency on platform. It is a second most popular cryptocurrency with the market cap of $41.4 billion.
Bitcoin was the first cryptocurrency ever so all other cryptocurrencies are very similar to Bitcoin, they are all distributed public blockchain networks. But we are more interested in what differs these two best cryptocurrencies. The most important difference is their purpose, Bitcoin is created as a online payment method, as alternative to physical money. Bitcoin\'s blockchain enables online Bitcoin payments while Ethereum blockchain focuses on running the programming code. The more applications are built the more valuable Ether becomes. The second difference is way to get the coin. While Bitcoin users are mining Bitcoin, Ethereum users are working to earn Ether.
Here are three factors that are influence the price. First is Ethereum supply, 96 million units, although there is expectation of increasing the supply. Second factor are decentralized applications, and the third but no less important factor is demand.
To predict future is pretty hard, especially when it comes into predicting the future price of cryptocurrencies due to its volatile market.