Be greedy when others are panic. I just bought more shares of Siacoin. Buy while it's still cheap. It probably gonna go up tomorrow.

So what's your forecast for EOS today? I'm thinking about buying now it's cheaper, but I don't like the tendency at all.

if you are indeed new to this you need to know one important thing: this market is different from Stocks market in many aspects.
the biggest thing you will notice is all the manipulations. when someone owns majority of the "shares" and also has lots of money they can easily manipulate everything.
also you need to know about what affects the prices.

for example in case of ethereum the ICOs have been increasing the price of ether artificially. and it is actually scaring me to want to enter it now because all these funds will soon start exiting and when they do they will crash the market with themselves.

Hi,

After some digging I still don't understand some major stuff about Ethereum and I hope someone can explain the following:

1. The miners are executing the smart contract code - right?
Does all of the miners in the system execute all the smart contracts code? And if so, how is the system able to scale and keep writing blocks every 15-17 secs when more and more contracts are being created?

2. In bitcoin, the miner that gets to write the next block gets it because they where able to find the solution for the specific hashing problem - how does this work in Ethereum?
I mean, how does the execution of smart contracts code and hashing the blocks works together?

3. A DAPP is basically a collection of smart contracts that work together and sending each other ether to run and do specific tasks - right?
If I got this right, what happens if someone else sends eth to one of the components (smart contract) that shouldn't run separately?

4. If I build a DAPP (let's say a new ERC20 token) - and I have only 1 ETH to use - how this affects my new coin?
    Or in other words, how does the ether currency relates to these erc20 coins? When I buy or sell Golem for example, how is ETH part of that process?

5. Bitcoin has a limited number of coins - how does this works here? When are ethers created and is there a limit? What are the rules?

I really hope someone can help me.

Thanks again

I will just start boldly. The Bancor business model is pretty close to a scam. I am sure you will not take my word for it, because this is my first post. In fact, I made this account because I find it bizarre that no one is talking about this. Let's be honest, which one of you truly tried to comprehend their mathematical proof? Not a single person who invested at least, because otherwise they would not have wasted their money. I will try to explain a little.

They collected pretty close to 400k ether. Essentially what they do, is keep .8*400k ETH = 320k ETH to themselves, and call the remaining 80k reserves. They will express this 80k in a different coin, called BNT. They assign 100 BNT to 1ETH that they received. That means there is 500BNT for every 1ETH in the reserves. Essentially, if everyone would want to convert their BNT back to ETH, they would get 1/500 ETH per BNT. Wait you say, in the white paper it says that the starting price of 100BNT will equal 1 ETH! This is true, this is where the mathematics uses a trick to hide what is going on. Their pricing formula, P=R/(S*F) ensures that the first BNT sold will be sold at a 'fair' value, namely equal to the amount of ETH you spent to buy it in the first place. After the first sell, things get worse rather quickly. Let's illustrate this by a little example:

Lets say that 10% of people who own BNT sell it back to ETH via the smart contract. For the initial price we get: P = 80k/(40m*.2) = 0.01. All looks fair. Then after the sell we get 40m*10%*0.01 = 40k,  P = 80k-40k/((40m-4m)*0.20) = 0,00556. Ouch, the price almost dropped to half value from the 10% sell-off (this is different if there are many small transactions but I will get to that later).

If people buy the same amount of BNT, this is what happens: P = 120k/(44m*0.20) = 0.01364. The increase in price is not nearly as interesting for the next person. But again, this will be lower for many small transactions.

I created a plot assuming transactions are made in small batches of BNT coins. We find that the BNT value drop VERY quickly when people start selling, and does not rise nearly as fast. Essentially this just makes BNT an undesirable coin. Another weird thing about their system is that it does not consider convexity. This means that big transactions will get very different prices than many small ones. This just does not make sense, but they don't care as they simply took your money.


If you are still not convinced, consider this. They literally admit to taking 80% of your money. All they give back is some mathematical trick based on 20% of the ether that you gave them. Do you really believe they just generated x5 value out of thin air? Sorry, but math does not work that way. I would recommend getting rid of your BNT asap, or you end up all the way on the left side of the graph. I am sorry that this news comes a bit late for some of you... I didn't read their methodology until last night

Maybe now you can start to add up why the ICO was strange in various ways.

As final words, don't just believe whatever I say. Think about it for yourself. I gain nothing by convincing you of whatever I write here, I am simply sharing thoughts.

Before investing in ethereum you should understand its price based on agressive media campaign, advertising to people who not familiar with cryptocurrencies and major stake of pre-mined coins what never reached the exchange. There is barely 100000 eth on exchanges despite ethereum have almost 100 million supply. Still, that doesn't mean ethereum will not go up. There is big money involved and some whale(s) who control like 99% of eth at the moment will try to  increase its capitalization as high as possible.

Last year i had no ether. I had btc
Now i have btc but also some ether

Here's why POS won't work. Its based on the most fundamental premise of greed i.e. you won't harm the value of what you hold. Unfortunately, that same premise will see the downfall of Ethereum. Why? one simple word - Bitcoin.

Bitcoin values are already at a all-time high and owners want to see it higher. The only way to to create demand and inflate values is to either hold the world to ransom (wannacry) or boost its status as a safe haven digital currency. Based on the latter, it may be in the interest of bitcoin holders to see Ethereum fail because there will be a massive selling of Ether for bitcoin.

With POS, the door becomes open for the Bitcoin whales to manipulate a massive failure of the Ethereum network to their benefit. How so?

Bitcoin is worth about 10x more than Ether at the moment. If the Bitcoin whales can accumulate 51% of Ether. They can engineer a failure of the ethereum network. Ethereum holders in their panic will flock to exchange their Ether for bitcoin driving up bitcoin and increasing the value of their existing holdings. As long as increase in value of bitcoin holdings > decrease in value of ethereum, it would be in their interest to do so. Furthermore, Bitcoin wants to be the pre-emininent digital token. To get rid of their closest adversary would surely be in their long term best interest.

So, in a nutshell, the POS basis of using greed to protect itself will in turn cause Ethereum to fail because they forget about the greed of others. Just my 0.0001 eth 's worth.

Effectively, yes... I have recently come to that realization.

Bitcoin's value does not come from its utility. It sucks at sending money (see the scaling debacle), and it sucks at everything else because it can't do pretty much anything the newer ALT coins can do. It is a store of value, and lives off of its network effect.

The network effect is why it will be the lone survivor. Bitcoin's network effect will reign supreme, and the network effect drops off exponentially as you go down the list of ALT coins. Litecoin's network effect has enabled it to survive among the top coins... for now, but it has not empowered it to stay ahead of the pack. Ethereum's network effect will be much the same.

Mostly all other ALT coins garner value from their perceived utility, such as Ethereum from its smart contracts. Effectively every new ALT coin worth its salt will incorporate smart contracts, and it will be a basic feature in the near future. Since all ALT coins are judged by their utility, they are doomed because new ALT coins will improve upon previous iterations.

For instance... Ethereum will not scale. We will start to see this soon as long as more and more projects keep building on top of it. It will reach a bottleneck, and consensus as to how to scale will be near to impossible to reach. Miners have different interests than smart contract developers have different interests than whales have different interest than core developers. Evidendenced by the Bitcoin scaling debacle. Thus, scaling needs to be built in from the start, and this dooms all existing ALT coin smart contract platforms from the get go. The next wave of smart contract blockchains will be scalable.

Yet still the new scalable smart contract platforms will have some arbitrary issue, which will be improved upon in later cryptocurrencies. It is a never ending vicious cycle which dooms ALT coins from their inception.

To provide another example... Bitshares and Waves DEXs will be replaced by DEXs that trade real assets via atomic swaps. Not IOUs or derivatives like most DEXs currently trade. The IOU/derivative DEXs will eventually become obsolete.

Same with anonymity. For now, Monero/zCash are the best options, but eventually a better option will be conceived. And then the previous next best things will be eventually retired. For instance, zCash may be made to have a no trust required initial setup, or Monero tech could be improved upon with more scalability (less blockchain bloat) and/or more anonymity.

don't think too hard about what and why of altcoins behaviors, you won't find any logical answers ever.

- it is a small market
- it is greatly manipulated
- and has a lot of whales, like those who premined or are holding the pre ICO tokens.
- the market is full of newbies

with combination of all these, prices will act irrationally and wild.