ethereum and bitcoin: two things you need to know

[BitCoinDream]

its a 100% premine. the coin itself 'ether' SHOULD not be considered a currency. but simply a stamp that ensures a transaction(contract) occurs. so in laymans terms treat it more like buying a postage stamp and not foreign currency.

Where did you get the idea its 100% premine? It will be mineable.

From the whitepaper:

The issuance model will be as follows:
● Ether will be released in a currency sale at the price of 1337-2000 ether per BTC, a
mechanism intended to fund the Ethereum organization and pay for development that has been
used with success by a number of other cryptographic platforms. Earlier buyers will benefit from larger
discounts. The BTC received from the sale will be used entirely to pay salaries and bounties to
developers, researchers and projects in the cryptocurrency ecosystem.
● 0.099x the total amount sold will be allocated to early contributors who participated in
development before BTC funding or certainty of funding was available, and another 0.099x will be
allocated to long-term research projects.
● 0.26x the total amount sold will be allocated to miners per year forever after that point.

edit: source:
https://www.ethereum.org/pdfs/EthereumWhitePaper.pdf

If it is 100% pre-mined then how the blockchain will be written with new contracts ?

[rdnkjdi]

If it is 100% pre-mined then how the blockchain will be written with new contracts ?

Good God - remind me to never believe anyone in here has anything to say based on facts ....

[pawel7777]

Ether is magical fairy dust, and that's exactly what you're getting for your BTC. An unknown quantity, of unknown supply and of unknown value.

- "An unknown quantity" - wrong, you know the exact quantity when buying
- "unknown supply" - correct, but supply will be known when IPO ends, model of supply is pretty clear
- "unknown value" - at this moment there's a fixed price in BTC. Yes, you don't know what the value will be at launch, but you also don't know what will be the value of BTC or any other altcoin (or... anything) on then.

[bigasic]

So, is Ethereum and Mastercoin pretty much the exact same idea?

[B1tc01n5]

In general when an IPO is too big it scares away small investors, I wish good luck for those that bite the bullet.

[TaunSew]

Ether is magical fairy dust, and that's exactly what you're getting for your BTC. An unknown quantity, of unknown supply and of unknown value.

- "An unknown quantity" - wrong, you know the exact quantity when buying
- "unknown supply" - correct, but supply will be known when IPO ends, model of supply is pretty clear
- "unknown value" - at this moment there's a fixed price in BTC. Yes, you don't know what the value will be at launch, but you also don't know what will be the value of BTC or any other altcoin (or... anything) on then.

Riddle me this.  If Ethereum is part PoW then what exactly is being PoWed?

There you go.  He's right in that there's an infinite quantity of Ethereum and you know how fickle many coins can be if there's inflation (especially inflation through an infinite supply of a coin).

By the way a big IPO is often a discouragement at best.  Anyone who wants Ethereum has already bought it - so who exactly is going to come in after launch to acquire it?   

You should be building the userbase before you build the capitalization, not the other way around, but not like Vitalik cares as Ethereum was always a Goldman Sachs' operation to make a few bucks overnight.

[TaunSew]

So, is Ethereum and Mastercoin pretty much the exact same idea?

Different mechanics but the same deliverance.  A copywrighting coin which spams YouTube / Articles and is treated like a ponzi scheme / get quick rich where a few wealthy investors throw bags of money at it thinking it will attract subsequent bags of money.

People who dumped a fortune on Mastercoin are truly bagholders at the moment and would had made more money off Doge and NxT back then.  Just like the Ethereum bagholders are probably going to make more money off other coins.

[Methodise]

I like them all (not all). I'm a collector, but diversification is necessary as a risk reduction exercise.

All cryptos are as much a technology proposition as they are a network one. The number of bitcoin holders is considerable, except in comparison to the incumbent, traditional payment networks. The Gini coefficient is diabolical, but most non-euro/dollar/renminbi/pound citizens would experience more friction spending their home fiats in most places, than bitcoiners. And the technology promises better outcomes for most sections of society.

I've only excited Litecoin because it's not the lightest. Ethereum are conducting a very admirable IPO. Is there even a minimum buy-in?

[Benjig]

So, is Ethereum and Mastercoin pretty much the exact same idea?

Different mechanics but the same deliverance.  A copywrighting coin which spams YouTube / Articles and is treated like a ponzi scheme / get quick rich where a few wealthy investors throw bags of money at it thinking it will attract subsequent bags of money.

People who dumped a fortune on Mastercoin are truly bagholders at the moment and would had made more money off Doge and NxT back then.  Just like the Ethereum bagholders are probably going to make more money off other coins.

yeah but at least this new better organized projects have not fall 95% like aurora or maza scams, this ethereum seems like counterparty, and counterparty coin now its still at 3-4x times the original value.

[digitalindustry]

Bitcoin price is tumbling and people are running scared.  Uh oh.  Hasn't this happened before?

To make sense of this latest speculation fiasco, you only need to know two things:

1. People who missed the Bitcoin boom (buying BTC at $1-$10, for example) are DESPERATE to invest in TNBG (The Next Big Thing).  Hence, ethereum and all the other altcoins-du-jour

2. The cryptocurrency market is NOT BIG ENOUGH to support more than one altcoin. Period. End of story.  So all of these other altcoins will bubble up, then fizzle out.

Dr. Michael Moriarty

All these turds will come and go , until you can show me something that is:

1. Priced by the free market and

2. Above the Quark Market Cap (even at this depressed price)

You have nothing.

Closest possible candidates are:

Zeta
Prime
Maybe FTC.

Doge (at full distribution)

[Ayers]

ethereum its a great project as the idea. But its very unclear..No mining algorithm infos..imense fundraiser
prob it will be a huge dump on lunch

its a 100% premine. the coin itself 'ether' SHOULD not be considered a currency. but simply a stamp that ensures a transaction(contract) occurs. so in laymans terms treat it more like buying a postage stamp and not foreign currency.

the only problem is that the postal service is re-selling their stamps 6 months before their printed. i will laugh though that we find out that the amount of data these 'contracts' can have is not enough to add terms and conditions or relevant info that would make them officially recognised if contested in court or private arbitration

i remember they said, there will be a mining phase, now is 100% premined, why?