So lets say I buy 100 ENG coins.


Who benefits from this? Yes I know the person or the exchange that sells it does, but that not what Im talking about.


What does buying the coins do for the developers? The project? The network?

Lets admit it, aside from the store of value and being able to pay for things, investing in alt coins is really just a digital coin collection.

Are we not all just picking our favorite coins and hoping that others think they are special and buy them which accounts for the value?

Its really just like investing in comic books, trading cards, art, or real coins.

No one has ever been able to explain to me why buying these coins helps in the functional use of them.

Before anyone answers, yes blockchain tech is great and will be used in the future, I am not disputing that, and to all thecrazy crypto zealots that say its a sign from above to bestow wealth on the needy or any other crap like that.....spare me.

Kyber Network launched the Kyber exchange today.
They have about 10 coins listed.
Decentralized exchange
Its great to see some teams launching projects that have some real world use.

Binance is down for 12 hours according to twitter for system upgrade.
No email to the users letting us know they were shutting down.
Seems kinda abrupt. Hope it really is just maintenance.

Im not trying to be a debbie downer here but if you look at the CMC graph it looks like we are slowly returning to the pre December values.

Since the peak in JAN, each spike it a bit lower than the previous, very much like the rise from DEC 1- Jan 8th.

It grew waaaaayyy tooooo fast and it looks like we are returning to the pre DEC values. What happens then is anyone's guess

I think the crazy December growth was based on hype and FOMO, everyone thought they were going to invest a thousand dollars and get a million back in a month.

If you read most of the posts on here it is almost cult-like delusion.........."we will MOON after the New Year, after the Chinese New Year, after January (always a bad month), after the FUD of regulation wears off, after lightning network, after a fork, after institutional money get pumped in".....and it goes on and on.

It seems rather simple to me, the cryptomarket blew up in December and grew faster than it should have and now it is slowly returning to the slow growth that was happening pre December.

If you look at some of my previous posts, I have become blue in the face trying to get anyone to answer what exactly are we are buying when we buy coins. I get it that we can pay for some things and store value. But buying a coin does nothing to help the developers that made them, increasing their value just makes the network they run more expensive to use.

After reading this forum and others, I have come to the conclusion that this is just high stakes pokemon go. We are collectors. There is nothing wrong with this. The art market it just like this. But ask yourself when I buy a Kyber coin, what can I do with it? How is the incresing value of a kyber [Suspicious link removed]d for the kyber network? You will come to same conclusion that there is not much behind the investment side of these coins.

Im not picking on Kyber, I actually think its an awesome idea and I have some. This example can apply to any of the functional coins.


Lets say I have 1000 KNC coins that I bought on an exchange.

Value of the KNC goes up and down daily.

How does this help the KNC network???

Nowhere in the white paper does it mention that the network uses KNC coins.

So how is the coin related to the success of the network? I get that the ICO raises money for the dev team.

Just to further my point, lets say the Kyber network DOES need the coins to work, wouldnt increasing the value of the KNC coin make it more expensive to use the network?? How can this be good for the network?

I guess that if the dev team has not released all the coins and the value increases it helps the team raise money selling them back to an exchange but this does not help the consumer because the cost of using the coin and network would increase also.

Maybe this market and technology is too young to answer my question, but there is no where that I have found that can explain how these coins are going to make money in the real world.

I am invested in crypto, but the more think about how the increasing value of coins hurt the functionality of the coin, the more I think we all just investing in the equivalent of digital gems that are for collection purposes only and that scares me.

[YOUR]

So I just completed a wire transfer for something unrelated to crypto.

As we were sitting there waiting for the transfer I jokingly asked the lady helping me if she was worried that she would lose her job when crypto puts the bank out of business.

She had no idea what I was talking about and I very briefly explained to her the ease of moving money, low fees, and smart contracts.

I wish I had taped her response.

Banker: "Well Sir, I do not think the bank would allow you to transfer YOUR money like that"

Well honey, thats the point!!!!!!!!!!!!

ETH just went to .1 BTC I think for the first time?
Can it get to .2 BTC?

I get the cryptocoins that are "currency" or a store of value model.

I get the investment side as far as the coins increasing and decreasing in value in the markets.

What no one can explain or give an example of is how these "coins" or algorithms can be practically applied n the real world.

Any algorithm that uses a coin to run the network would wind up costing the consumer more if the value increases.
Any company that takes the coin as a form of payment loses money when the value decreases.

I am fascinated by the technology and the investment side is pretty easy to understand, but how it translates into real world implementation that generates money I do not understand.

Reading all the white papers and researching all the problems each "coin" is going to solve is great, but Im having a difficult time seeing how the investment side and the practical application side of these coins are married. 

Absolutely nobody wants to answer this question.

Please someone give any example of a coins value increasing and the cost to the consumer does not change.

If consumer A needs 4 eth to close a transaction with business B, then 2 days later ETH increases in value, how does consumer C close the same transaction with business B for the same price?

 

I posted this on the economics forum also

Help me understand the "coin" business model in the real world.

What I am not understanding is how the coins and tokens that are attached to contracts work.

Lets say a token is created to get rid of the middle man in a mortgage closing to verify the transaction. So the buyer acquires the token, submits the documents and token as payment on the blockchain. The network verifies the transaction, the seller gets the tokens as payment.

1) What does the seller do with the tokens? Presumably they are only selling one home so to collect many of these tokens does not make sense.

2) Do they sell them on an exchange and go through the same laborious process of getting the money out, no response to support tickets and withdraw limits?

3) If these tokens are traded the values can change on the hour, so do they really want to risk accepting payment if the value rapidly declines?

4) Same is true with the buyer, as tokens increase in value, it will cost more to transact.

I understand that these tokens and the blockchain can have the benefits of reduced fees and immutable verification but I do not understand how it works as a business model.

It would seem that there are huge risks on both sides if you do not bind the value of a token with a stable fiat currency.

I also would love to hear of anyone submitting a withdraw request at one of the current exchanges for 100k+ in fiat  and having it get wired without major delays and hassles.

I guess I am having a hard time coming up with a real world model that eliminates the middle man, reduces fees and verifies transactions, and has the ease of cashing out.

Maybe what solves this problem is a highly reliable way of cashing the tokens out. Much more reliable exchanges? I know the crypto purists do not want to have fiat in the picture, but the current reality is that it is necessary for the major of consumers and businesses to be able to convert these tokens into cash.

Help me understand the "coin" business model in the real world.

What I am not understanding is how the coins and tokens that are attached to contracts work.

Lets say a token is created to get rid of the middle man in a mortgage closing to verify the transaction. So the buyer acquires the token, submits the documents and token as payment on the blockchain. The network verifies the transaction, the seller gets the tokens as payment.

1) What does the seller do with the tokens? Presumably they are only selling one home so to collect many of these tokens does not make sense.

2) Do they sell them on an exchange and go through the same laborious process of getting the money out, no response to support tickets and withdraw limits?

3) If these tokens are traded the values can change on the hour, so do they really want to risk accepting payment if the value rapidly declines?

4) Same is true with the buyer, as tokens increase in value, it will cost more to transact.

I understand that these tokens and the blockchain can have the benefits of reduced fees and immutable verification but I do not understand how it works as a business model.

It would seem that there are huge risks on both sides if you do not bind the value of a token with a stable fiat currency.

I also would love to hear of anyone submitting a withdraw request at one of the current exchanges for 100k+ in fiat  and having it get wired without major delays and hassles.

I guess I am having a hard time coming up with a real world model that eliminates the middle man, reduces fees and verifies transactions, and has the ease of cashing out.

Maybe what solves this problem is a highly reliable way of cashing the tokens out. Much more reliable exchanges? I know the crypto purists do not want to have fiat in the picture, but the current reality is that it is necessary for the major of consumers and businesses to be able to convert these tokens into cash.

I have been reading over the forums and following the markets for a month or so and have enjoyed the threads on all the various crypto info.

The glaring obvious pattern that has emerged over the New Year is that there is new money coming into crypto, but its not going into bitcoin.
Most of the alt coins have increased fairly substantially over the last few days and simultaneously bitcoin has been flat.

One of the common themes on this forum and the alt forum is that when money comes out of alt coins in gets transferred into bitcoin and vice versa. So a lot of the same money is just getting passed around.

Over the last few days bitcoin has been pretty stable for bitcoin numbers but coins like ripple and eth have done very well. So money is not coming OUT of bitcoin, but rather NEW money is going into something OTHER than bitcoin. This new influx of money is going into coins that actually do something.

I am not making any statements about the pros/cons of bitcoin, but I wonder if this new money is "smarter" in that there was some research put into the decision of where to invest rather than just throw the money at bitcoin. I am certainly no expert in any of this, and I have a very limited knowledge of all things cypto, but it doesnt take much to understand that the coins or algorithms that provide a function that someone or business finds useful, have more of value that something that doesnt.

And yes I know high transaction fees seem to get blamed for a lot of bitcoin's issues but I wonder if is more than that, and the new money is simply more educated. It does not take a genius to read over Vitalik Buterin's twitter and links to see how that guy is so invested in the success of his product. He makes it pretty easy to throw some money behind.

Discuss....

Hi,

I just have a general question. I am not looking for exchange names or exchange bashing. since I am relatively new to all this I starting wondering how successful people have been with actually getting their fiat money out after cashing out coins. Especially recently since small investments have turned in large sums of money. So if someone for instance submits a request to wire 50k or more from an exchange to their bank, it there a good chance it gets there? I am not interested in small amounts getting wired. I am not looking to avoid taxes or anything like that, I mean legit wires that get to your bank account. Since none of this is really regulated it would seem that it would be very hard to track your money down if it is not sent. I hope Im being overly paranoid and have read to many reddit posts. If its too good to be true it probably is right? 2 months ago a 10k investment in some of these coins could be a huge number and I am wondering how easy/hard it is to get that money out.
Thanks

Relativity new to all of this
I am soaking up all I can about these alt coins

This is probably a ridiculous question but is there a lot of activity of buying on one exchange, transferring to another and immediately selling at higher price? I guess like day trading. I would guess the answer is yes.

There seems to be some pretty wide gaps between the exchanges unless there are delays that I am not seeing

Is this a correct assumption?

If there is a long backlog of transactions to verify and some have a low enough gas price that the miners choose higher gas priced transactions, is it
 possible for the low gas transactions to never be picked up due to the long backlog? Any "new" transactions with higher gas prices will be picked up again and again leaving the lower ones to be in the "air"

Im also assuming that under normal transaction levels the lower gased transactions get done because the miners can keep up with the volume. So my assumption only holds for unusually high volume.

If this is the case in high volume times, what eventually happens to the unverified transactions? Are there time limits on these delayed transactions, and if so do the coins get returned to the original source? Can these coins theoretically be tied up indefinitely?

Im new to all of this and just trying to understand why a transaction of mine is currently at 50 hours. Im not asking for help with the specific transaction, just trying to learn.

thanks

Can it take hours for withdraws from an exchange to the wallet to show up?
I sent some ETH to my Trezor  3.5 hours ago through MEW and there is no transaction hash on etherscan.
Thanks