ethereum and bitcoin: two things you need to know

[moriartybitcoin]

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

[LiteCoinGuy]

yeah, and that other altcoin is Litecoin  

[Beliathon]

Nope OP, there is only one thing you need to know, and it's this:

http://gavintech.blogspot.com/2014/06/bit-thereum.html

[BitCoinDream]

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

I heard the ethereum guys said they'll dump all their collection from ethereum pre-sale. So supply may increase. Hence the price drop.

[moriartybitcoin]

When you invest in ethereum, you're paying for a mysql database entry, that's about it ...

"a trusted source is still needed to provide the price ticker."

[BitCoinDream]

When you invest in ethereum, you're paying for a mysql database entry, that's about it ...

"a trusted source is still needed to provide the price ticker."

It is probably been provided by www.stellarvalue.org

[bornil267645]

for me, ethereum is still not that clear. it needs more clarity.

[bigasic]

Im not that technical and still am learning how bitcoin works, etc.. Can someone explain to me what ethereum and Mastercoin are? are they competitors? From what I gather, they are just trying to use the blockchain for different purposes other than transferring a currency, like sign a contract, sell a car (being that one of them, ethereum or mastercoin could come up with a way to do this)..

Am I close? If not, please explain why I should invest in ethereum. I didn't miss the bitcoin boat, would hate to a boat like it though...

[BitCoinDream]

Im not that technical and still am learning how bitcoin works, etc.. Can someone explain to me what ethereum and Mastercoin are? are they competitors? From what I gather, they are just trying to use the blockchain for different purposes other than transferring a currency, like sign a contract, sell a car (being that one of them, ethereum or mastercoin could come up with a way to do this)..

Am I close? If not, please explain why I should invest in ethereum. I didn't miss the bitcoin boat, would hate to a boat like it though...

In simple term, Ethereum & Mastercoin are both trying to provide smart contract mechanism depending on blockchain type concept.

It is strongly suggested, not to invest in Ethereum at the moment. There will be a big price drop at their launch as current investors will book profit. If u decide to buy, buy then. Please read the Ethereum T&C too...

[Ayers]

funny part is that ethereum use bitcoin for their investment, they should attach themselves to usd directly, as long as you use btc as your primary money injection, you are inferior to it

[franky1]

the ethereum buy-up last month has not directly caused the price drop.

infact having bitcoin and selling them for altcoins means they are not initially being sold for FIAT. and not on the fiat<->btc orderbooks. so buying products/altcoins does not harm the bitcoin price.

what does harm the price is the emotional decidsions of those new holders of the coin. and what choices they make after receiving bitcoin.

the problem is that if the altcoin maker doesnt deem that their altcoin is worth much, or deem the work they done creating it as very costly.. then when they get the bitcoin, they will treat the received bitcoin as "free money" and sell it for FIAT at any price, because to them they got bitcoins for literally free by selling ice to eskimo's.

so its not the action of buying an alt that causes a price tank.. but the fact that the altcoin is worthless, that will cause the the creator to cash out the bitcoin. after all by not helping to code bitcoin itself, but to scam people with altcoins, he obviously is not a 'bitcoin investor' but a fiat investor looking for ways for a quick payday.

and so we seen the guys at ethereum, not hoard bitcoin and just give it to staff as wages slowly over the next year until the perceived launch.. but instead they have dumped coin to fiat which looks more like a 'cut and run'.

 

[icet208]

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

[bigasic]

the ethereum buy-up last month has not caused the price drop.

infact having bitcoin and selling them for altcoins means they are not initially being sold for FIAT. and not on the fiat<->btc orderbooks. so buying products/altcoins does not harm the bitcoin price.

what does harm the price is the emotional decidsions of those new holders of the coin. and what choices they make after receiving bitcoin.

the problem is that if the altcoin maker doesnt deem that their altcoin is worth much, or deem the work they done creating it as very costly.. then when they get the bitcoin, they will treat the received bitcoin as "free money" and sell it for FIAT at any price, because to them they got bitcoins for literally free by selling ice to eskimo's.

so its not the action of buying an alt that causes a price tank.. but the fact that the altcoin is worthless, that will cause the the creator to cash out the bitcoin. after all by not helping to code bitcoin itself, but to scam people with altcoins, he obviously is not a 'bitcoin investor' but a fiat investor looking for ways for a quick payday.

and so we seen the guys at ethereum, not hoard bitcoin and just give it to staff as wages slowly over the next year until the perceived launch.. but instead they have dumped coin to fiat which looks more like a 'cut and run'.

 

I noticed that they announced that they were going to sell a few thousand BTC on August 8th or so, I wonder if that had anything to do with our current downward trend. but you are right, they will get rich even if their product doesn't even work, lol..  I think ill wait to invest, even if it costs me more.. cant PPCoin do the same thing? proof of work? or even NXT? Why do we need these weird alt coins? PPCoin, I can see the logic, but not too many of the others..

[franky1]

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

[franky1]

I noticed that they announced that they were going to sell a few thousand BTC on August 8th or so, I wonder if that had anything to do with our current downward trend. but you are right, they will get rich even if their product doesn't even work, lol..  I think ill wait to invest, even if it costs me more.. cant PPCoin do the same thing? proof of work? or even NXT? Why do we need these weird alt coins? PPCoin, I can see the logic, but not too many of the others..

ill explain myself better. ethereum sale did not cause a price drop that day, infact because bitcoins were not being sold for fiat by day traders but instead actually taken away from the sell orders of the fiat<->btc exchanges and used to buy ether... the ether purchases helped bitcoins fiat price..

now imagine there is a magical wall that separates the actions of investors buying Ether "presale" on one side. and on the separate side of the wall as a completely different event, is the actions of ethereum inventors deciding to hoard bitcoin to cover future labour costs. or to sell out and run..

now this separate event of the ethereum inventors, instead of drip feeding small amounts of bitcoin to staff as normal wages to cover the next year of work they NEED TO DO. and those staff making personal decisions to hoard their weekly/monthly income or to sell when needed, instead they dumped bitcoin as fast as they could at any cost.

which to me, doesnt look too promising.  

[B1tc01n5]

IPO etherum was too big so scared me from investing.

[jcoin200]

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

I fully agree, and my opinion is that every dollar that goes into an altcoin, is a vote against BTC.  

I also think there is no real reason for BTC to rise largely.  Whales can make loads of money just by knowing when to get in and out, no price increase necessary.

[pawel7777]

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

[rdnkjdi]

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

Basically the first 4 years supply was mined and sold to people buying future ethers.  .26 of initial supply to be mined every year.

... There will be a big price drop at their launch as current investors will book profit.

This makes no sense.  If the price is less than original IPO price of 2K ether per btc then ... "current investors" didn't profit.  I'm confused.

[Nullu]

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.