As stated above, one of the biggest factors on bitcoin’s price is the steady introduction of new bitcoins through payments to the computer operators that process transactions (miners).
Mining affects price by increasing the supply, and through the decision of miners to hold or sell bitcoin. Ethereum’s current version, Homestead, leverages a proof-of-work based consensus algorithm, rewarding computers that contribute to its security in the same way.
Under this system, miners create a new block every 15-17 seconds, resulting in the creation of 5 ETH, according to figures provided by Ethereum.org. Miners that contribute to discovering a solution, but don’t get their block included, can receive two or three new ethers, which is called an uncle/aunt reward.
Once Ethereum starts using Casper, a proof-of-stake protocol, this rate is expected to change, as many anticipate Casper will provide a smaller mining subsidy. Under the new protocol, nodes will not be able to validate transactions and therefore produce blocks unless they provide a security deposit.
Should the protocol determine that a node, or "bonded validator," has produced anything invalid, the node will lose both any deposit provided and also the ability to participate in the consensus process. Currently, bonded validators face no penalty if they produce blocks considered invalid by the protocol.
By changing incentives, it is expected that Casper will be more efficient, but the change could also mean that ether’s value is adjusted to the new realities of the network’s operation.
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