If ethereum becomes too expensive it fails

[gustav]

I was reading the disclaimer and they said the network could be instable and businesses could be forced to stop operating if eth becomes too expensive. My question is: how can it go to the moon then? Isn't that like btc would stop working once it's more expensive than 2k$ or something? Isn't it kind of guaranteed then to fail? I mean, don't we know the rampant speculation around here?
Guys, you can't speculate on eth because if you do it fails!

I know nobody will listen, then isn't it already nailed it will fail?


edit:
copy of TOS:

"19.15 Risk of Rapid Adoption and Insufficiency of Computational Application Processing Power on the Ethereum Network

If the Ethereum Platform is rapidly adopted, the demand for transaction processing and distributed application computations could rise dramatically and at a pace that exceeds the rate with which ETH miners can bring online additional mining power. Under such a scenario, the entire Ethereum Platform could become destabilized, due to the increased cost of running distributed applications. In turn, this could dampen interest in the Ethereum Project and ETH.

Insufficiency of computational resources and an associated rise in the price of ETH could result in businesses being unable to acquire scarce computational resources to run their distributed applications. This would represent revenue losses to businesses or worst case, cause businesses to cease operations because such operations have become uneconomical due to distortions in the crypto-economy."

[poornamelessme]

One thing I have wondered about is ...

if it becomes really too expensive, could they simply use fragments of Ether to power the applications using the network? Sort of like a stock split, I guess.

[claimore]

I didnt invest because of this same reason. Project too big and complex for its own good.

[slaveforanunnak1]

One thing I have wondered about is ...

if it becomes really too expensive, could they simply use fragments of Ether to power the applications using the network? Sort of like a stock split, I guess.

Wei = 10^0
Ada = 10^3
Babbage = 10^6
Shannon = 10^9
Szabo = 10^12
Finny = 10^15
Ether = 10^18
Einstein = 10^21
Douglas = 10^42

[slaveforanunnak1]

I didnt invest because of this same reason. Project too big and complex for its own good.

well, glad you're not in charge of anything
It's like saying "iphone is too complex for its own good.. it's not going to work... i'll stick to my Nokia 6160"

[gustav]

I didnt invest because of this same reason. Project too big and complex for its own good.

well, glad you're not in charge of anything
It's like saying "iphone is too complex for its own good.. it's not going to work... i'll stick to my Nokia 6160"

that's like saying telephones are decentralized-application-prototypes. It is not the same.
Dogs are not birds or fishes. Can't compare that, bro. Ethereum is not an iphone.

That's a general thing btw. Comparisons of different things never carry any argumentative value, just sayin'

[slaveforanunnak1]

I didnt invest because of this same reason. Project too big and complex for its own good.

well, glad you're not in charge of anything
It's like saying "iphone is too complex for its own good.. it's not going to work... i'll stick to my Nokia 6160"

that's like saying telephones are decentralized-application-prototypes. It is not the same.
Dogs are not birds or fishes. Can't compare that, bro. Ethereum is not an iphone.

That's a general thing btw. Comparisons of different things never carry any argumentative value, just sayin'

Just saying... if something is too complex and you can't understand how it could work, doesn't mean it won't work.

[gustav]

Just saying... if something is too complex and you can't understand how it could work, doesn't mean it won't work.

that is right. Me personally believes that new technology always comes with bugs and the more complex it is the more bugs can occure. But we will see that once it is released. My original question from the OP still remains. How can this go to the moon?

[Spoetnik]

ok this is an interesting topic !

[V500]

"risk of rapid adoption" lmao

[lovely89]

how can it go to the moon then?

It's not designed to go to the moon. It's not an investment but a product used to power the ethereum applications. In theory, the more invested at the start, the smaller the price of ether, as there is more supply. 

[aguy]

I was reading the disclaimer and they said the network could be instable and businesses could be forced to stop operating if eth becomes too expensive. My question is: how can it go to the moon then? Isn't that like btc would stop working once it's more expensive than 2k$ or something? Isn't it kind of guaranteed then to fail? I mean, don't we know the rampant speculation around here?
Guys, you can't speculate on eth because if you do it fails!

I know nobody will listen, then isn't it already nailed it will fail?


edit:
copy of TOS:

"19.15 Risk of Rapid Adoption and Insufficiency of Computational Application Processing Power on the Ethereum Network

If the Ethereum Platform is rapidly adopted, the demand for transaction processing and distributed application computations could rise dramatically and at a pace that exceeds the rate with which ETH miners can bring online additional mining power. Under such a scenario, the entire Ethereum Platform could become destabilized, due to the increased cost of running distributed applications. In turn, this could dampen interest in the Ethereum Project and ETH.

Insufficiency of computational resources and an associated rise in the price of ETH could result in businesses being unable to acquire scarce computational resources to run their distributed applications. This would represent revenue losses to businesses or worst case, cause businesses to cease operations because such operations have become uneconomical due to distortions in the crypto-economy."

I indirectly responded to this post over here: https://bitcointalk.org/index.php?topic=707237.msg8031122#msg8031122

My question is: how can it go to the moon then?

Why should it?  The purpose is not to make people money.  The purpose is to allow people to make smart contracts.  However, people are opportunistic and some will risk that people will value ETH at some arbitrary value.  The opportunistic people are called investors and Ethereum, like many startups are relying on them since no one would get anything if Ethereum developers stop developing.  They still need money right now so Ethereum team is speculating people will speculate and they can continue to pay rent/food/etc.  We are using abstract objects to come to agreement.  If people do not think it is worth it to trade X for ETH, they will not trade.  Thus ETH is valued less until someone values it.

Isn't that like btc would stop working once it's more expensive than 2k$ or something?

If you consider almost 1 billion people make less than $1.00 USA dollar a day, bitcoins are already out of the reach of many, as a person would require technology to own BTC and they can barely afford food and the network continues to work as many businesses conducting billions of dollars worth of transactions a year continually begin accepting it.  However, even when 1 btc = $100k, bitcoin would continue to work as each bitcoin can be subdivided into 100 million units.    

Isn't it kind of guaranteed then to fail? I mean, don't we know the rampant speculation around here?
Guys, you can't speculate on eth because if you do it fails!

Speculation leads to failure all the time as speculation is the assumption of risk.  
For instance, 1 person could have bought 90% of ETH so far.  However, if you consider they fall ill in the next 6 months and die without leaving record of their identity or their purchase to their heirs, that 90% would forever lay unclaimed, and those that bought the other 10% would probably had made a wise decision to assume that risk.
All sorts of scenarios can occur.  It's up to each individual to decide whether the assumed risk is acceptable for the assumed reward.  Their disclaimer is educating people about the product.  This is the opposite of the definition of scam.  A scam would want to minimize potential risks so you only focus on the reward to hype their product.  Additionally, the terms are obvious to anyone who understands the product; execution of smart contracts would be non-economical for many developers so they may not utilize the service, thus working against your speculation and the temporary "failure" of that investment.

Understand as well, some people will toss 1 BTC for no profit motive, but because they want development to continue.

[slaveforanunnak1]

I was reading the disclaimer and they said the network could be instable and businesses could be forced to stop operating if eth becomes too expensive. My question is: how can it go to the moon then? Isn't that like btc would stop working once it's more expensive than 2k$ or something? Isn't it kind of guaranteed then to fail? I mean, don't we know the rampant speculation around here?
Guys, you can't speculate on eth because if you do it fails!

I know nobody will listen, then isn't it already nailed it will fail?


edit:
copy of TOS:

"19.15 Risk of Rapid Adoption and Insufficiency of Computational Application Processing Power on the Ethereum Network

If the Ethereum Platform is rapidly adopted, the demand for transaction processing and distributed application computations could rise dramatically and at a pace that exceeds the rate with which ETH miners can bring online additional mining power. Under such a scenario, the entire Ethereum Platform could become destabilized, due to the increased cost of running distributed applications. In turn, this could dampen interest in the Ethereum Project and ETH.

Insufficiency of computational resources and an associated rise in the price of ETH could result in businesses being unable to acquire scarce computational resources to run their distributed applications. This would represent revenue losses to businesses or worst case, cause businesses to cease operations because such operations have become uneconomical due to distortions in the crypto-economy."

I indirectly responded to this post over here: https://bitcointalk.org/index.php?topic=707237.msg8031122#msg8031122

My question is: how can it go to the moon then?

Why should it?  The purpose is not to make people money.  The purpose is to allow people to make smart contracts.  However, people are opportunistic and some will risk that people will value ETH at some arbitrary value.  The opportunistic people are called investors and Ethereum, like many startups are relying on them since no one would get anything if Ethereum developers stop developing.  They still need money right now so Ethereum team is speculating people will speculate and they can continue to pay rent/food/etc.  We are using abstract objects to come to agreement.  If people do not think it is worth it to trade X for ETH, they will not trade.  Thus ETH is valued less until someone values it.

Isn't that like btc would stop working once it's more expensive than 2k$ or something?

If you consider almost 1 billion people make less than $1.00 USA dollar a day, bitcoins are already out of the reach of many, as a person would require technology to own BTC and they can barely afford food and the network continues to work as many businesses conducting billions of dollars worth of transactions a year continually begin accepting it.  However, even when 1 btc = $100k, bitcoin would continue to work as each bitcoin can be subdivided into 100 million units.    

Isn't it kind of guaranteed then to fail? I mean, don't we know the rampant speculation around here?
Guys, you can't speculate on eth because if you do it fails!

Speculation leads to failure all the time as speculation is the assumption of risk.  
For instance, 1 person could have bought 90% of ETH so far.  However, if you consider they fall ill in the next 6 months and die without leaving record of their identity or their purchase to their heirs, that 90% would forever lay unclaimed, and those that bought the other 10% would probably had made a wise decision to assume that risk.
All sorts of scenarios can occur.  It's up to each individual to decide whether the assumed risk is acceptable for the assumed reward.  Their disclaimer is educating people about the product.  This is the opposite of the definition of scam.  A scam would want to minimize potential risks so you only focus on the reward to hype their product.  Additionally, the terms are obvious to anyone who understands the product; execution of smart contracts would be non-economical for many developers so they may not utilize the service, thus working against your speculation and the temporary "failure" of that investment.

Understand as well, some people will toss 1 BTC for no profit motive, but because they want development to continue.

That's me, though i only tossed .25 btc. I want this to succeed.

[gustav]

so it's kind of official now that people investing into ethereum to make money are idiots?
So the "ipo" is a pure charity for the eth-team?
... interesting for sure ... at least it was all there to read before the purchase in very clear language. Well done, i guess. Those guys deserve hookers and blow on your money because most of you were sending bitcoin without reading or thinking.
this is hilarious.

[GreenBacksTeam]

The Ether project has so many bylines and small clauses that raise alarms. They are protecting themselves from everything, makes you wonder if they expect to fail.

[lovely89]

The Ether project has so many bylines and small clauses that raise alarms. They are protecting themselves from everything, makes you wonder if they expect to fail.

No, they understand the law and nothing is ever a guarantee.

[serje]

This is an interesting project! I hope it succeeds!

And I will buy 20 ETH today

[Nxtblg]

The Ether project has so many bylines and small clauses that raise alarms. They are protecting themselves from everything, makes you wonder if they expect to fail.

They're protecting themselves from angry people who got ticked off when they first announced the project and pre-solicited their pre-sale. In the real world of real commerce, people facing a trollstorm lawyer up.

[profitofthegods]

copy of TOS:

"19.15 Risk of Rapid Adoption and Insufficiency of Computational Application Processing Power on the Ethereum Network

If the Ethereum Platform is rapidly adopted, the demand for transaction processing and distributed application computations could rise dramatically and at a pace that exceeds the rate with which ETH miners can bring online additional mining power. Under such a scenario, the entire Ethereum Platform could become destabilized, due to the increased cost of running distributed applications. In turn, this could dampen interest in the Ethereum Project and ETH.

Insufficiency of computational resources and an associated rise in the price of ETH could result in businesses being unable to acquire scarce computational resources to run their distributed applications. This would represent revenue losses to businesses or worst case, cause businesses to cease operations because such operations have become uneconomical due to distortions in the crypto-economy."

This is not saying if 1 ether gets too expensive it fails; it is saying that if adoption rises too fast in comparison to growth in mining it could fail. A high price encourages mining, so would actually help. If the price rises, then that doesn't mean that apps and services using either will find it too expensive, because as long as mining keeps up with the price rise these services will just end up paying a smaller fraction of an ether for the resources they are using.

[efreeti]

"19.15 Risk of Rapid Adoption and Insufficiency of Computational Application Processing Power on the Ethereum Network

For people who study Ethereum, they know this is guarantee to happen as the usage increase. And the developers have been careful to avoid answering question on this problem.

Kind of what you wonder, what kind of people will accept money for IPO knowing there will be problems not too far into the future.