The Case For Ethereum Maximalism
Ethereum is going to win it all, the markets just havent realized ityet I have opinions. You have opinions. Our opinions might not be the same. Thats ok. There is no need to tell me how stupid or evil I am. If you feel a visceral reaction to this blog post, you might explore the possibility that you hold a tribalist attachment to your cryptocurrency views and wonder whether this is really healthy or truth-tracking. So far, three cryptocurrenciesBitcoin, Ripple, and Ethereumhave hit a market cap of $100B. Notably, they all did so within three months of each other. These cryptocurrencies first hit market caps of $10B in 2013, 2017, and 2017, respectively. Bitcoin reached the $10B milestone almost four years before any other cryptocurrency, but the $100B milestone only three months before its competitors. At least by this one admittedly imperfect metric, Bitcoin is losing its lead. Bitcoin losing its lead makes sense to me. What doesnt make sense is that Bitcoin still has a lead at all and that it still has so many proponents. In terms of actual utility, Bitcoin is inferior in almost every way to several other cryptocurrencies, most dramatically Ethereum. I find myself inexorably drawn to a position not publicly articulated or even necessarily held by Ethereums founders and most active developersEthereum maximalism. My cryptocurrency portfolio is invested accordingly, and I dont need to justify my beliefs, but I am writing out my rationale for the benefit of friends and followers who are interested. Take it for what its worth. The economics of cryptocurrency competition My mental model of cryptocurrency competition is still the one Jerry Brito and I developed for our 2014 article on cryptocurrency in the New Palgrave Dictionary of Economics (heres an ungated version , rel Continue reading >>
Ethereum's Creator Mulls Limiting Supply In Novel Ways
Ethereum's Creator Mulls Limiting Supply In Novel Ways While the ICO craze has got out of control in 2017, the two leading cryptocurrencies Bitcoin and Ethereum have gone from strength to strength. Weve seen frequent gut-wrenching (for bulls) drawdowns, wallet freezings (Ethereum several days ago see here ), exchange closures (China) and high-profile criticism from speakers engaging forked-tongues (Jamie Dimon's famous fraud comments, etc). Nonetheless, like fledglings learning to leave the nest, a broad swathe of opinion senses that there is progress. Like the early days of the internet, investors will suffer losses on those ICOs which were poorly planned and/or poorly executed which might be most of them. As this process unfolds, however, the better cryptocurrencies will be tweaked, refined and sometimes forked to make them better suited to a range of decentralised applications which are, themselves in state of flux. Talking of tweaks, the co-founder of Ethereum, Vitalik Buterin, is mulling one for Ethereum which might happen before the end of 2017. Watching the firehose of ICOs, Buterin has been asking himself whether, with Ethereum (ether), hes creating too much of a good thing. According to Bloomberg . The 23-year-old helped sell one of the first digital currencies in 2014 when he introduced ether to the public. Three years later hes witnessed scads of other digital currencies raise more than $3 billion in 2017 via so-called initial coin offerings. The sheer number of coins now being created has made him ponder the previously imponderable: limiting the supply of ether. Im concerned a lot of these token models arent going to be sustainable, Buterin said in a rare interview last week at the Ethereum Developers Conference in Cancun, Mexico. So whats the problem? Ther Continue reading >>
January's Top Large Cap Crypto? Not Bitcoin Or Ether...
January's Top Large Cap Crypto? Not Bitcoin or Ether... Feb 2, 2018 at 09:00 UTC|UpdatedMar 21, 2018 at 18:09 UTC January turned out to be a difficult month for the cryptocurrency markets. Bitcoin, the world's largest currency by market capitalization, dropped close to 30 percent, meaning its market capitalization shaved off billions after a torrid end to 2017.Meanwhile, excitement seemed to fade as the total value of all cryptocurrencies taken together topped out at $830 billion on Jan. 7, ending the month below $500 billion. However, amid the gloom and doom, a few small-cap tokens managed to put on a good show. For instance, names like VeChain, NEO, Populous and Stellar dominated the list of gainers among the top 25 cryptocurrencies by market capitalization (as of Jan. 31). Here's a closer look at their performance. Boasting an association with enterprise firms in China , VeChain has been aiming to use an open blockchain network to revolutionize the internet of things (IoT) since late 2016. But despite the partnerships, it hadn't garnered much attention throughout 2017's cryptocurrency boom, trading under $1 as recently as December, up from as low as $0.20 in November. That seems to have now changed, as the blockchain recently announced it will be rebranding VeChain (VEN) into VeChain Thor (VET/THOR) this month, a plan of action that may have sparked the interest of investors eager to chase gains in a cooling market. To date, the project has garnered attention from Chinese state media and has also partnered with the China National Tobacco Corporation to develop and implement blockchain solutions. Sometimes referred to as "China's ethereum," neo has aimed to build a smart economy in much the same way as its larger competitor, though without the same enterprise fanfare Continue reading >>
I Was Wrong About Ethereum Because Its Such A Good Store Of Value No Wait, Let Me Tryagain.
Crypto OG. Talks about Bitcoin and sometimes other cryptocurrencies. I was wrong about Ethereum because its such a good store of value no wait, let me tryagain. I was wrong about Ethereum because its such a decentra nope. I was wrong about Ethereum because everyone is using it as a supercomputer No. I do admit I didnt see this Ethereum bubblecoming But, then again I wrongly assumed that no startup would need or even dare to ask $50 million in funding. I also wrongly assumed that people would use common sense and that leading developers would speak out against this sort of practice. Quite the opposite it seems. Ethereums sole use case at the moment is ICOs and token creation. Greed from speculators, investors and developers. So lets think for a minute and think what determines the price? Supply + demand. Pretty straightforward. The tokens that are available on the market, right? But with every ICO there are more tokens that are being locked up. Obviously the projects will liquidate some, to get fiat to pay for development of their project, but they also see the rising price of Ethereum. So at that point greed takes over and they think, totally understandable, We should probably just cash out what we really need and keep the rest in ETH, thats only going up anyway it seems. And obviously there are new coins being mined, but if you look at the amount of ETH these ICOs raise, at this point, its just a drop in a bucket. You have the normal investors (who are already very late to the game at this point as usual), but the buy pressure that these ICOs are creating is crazy and scary. Take TenX for example, its an upcoming ICO at the end of the month. The cap is 200,000 ETH (at current ETH price of $370) thats $74,000,000 for a startup. Heres the best part: its only 51% of the Continue reading >>
Is There A Limit To The Supply Of Ethereum?
Is there a limit to the supply of Ethereum? Quote from Vitalik Buterin, Ethereum Foundation: So here is a thought. Currently, because of the PoW ice age, the block time is scheduled to start increasing in mid-2017, and past around 2019 the increase is going to grow exponentially. The mining reward does NOT increase proportionately. Hence, there is already an exponential slowdown in the growth of the ETH supply built into the protocol; my script shows: Block 3000000, approx ETH supply 87962556, time '2017-01-16 00:38:33.067775' blocktime 14.86 Block 3500000, approx ETH supply 90612556, time '2017-04-11 18:09:34.273529' blocktime 15.27 Block 4000000, approx ETH supply 93262556, time '2017-08-15 18:20:24.642729' blocktime 30.01 Block 4500000, approx ETH supply 95912556, time '2018-11-03 05:55:48.912370' blocktime 136.71 Block 5000000, approx ETH supply 98562556, time '2025-10-02 11:47:30.658317' blocktime 835.81 Block 5500000, approx ETH supply 101212556, time '2128-03-20 09:14:16.483692' blocktime 17183.83 Block 6000000, approx ETH supply 103862556, time '5189-09-26 20:57:59.367004' blocktime 520901.19 Hence, in the foreseeable future, the supply will not go far above 100 million. Ice age is a term used to describe the difficulty increase in the network(also called difficulty bomb). With time the mining difficulty increases exponentially and will bring the network to a halt. The idea behind this is to motivate the developers to move to Proof of Stake and give them a time limit to implement the new protocol before the network stops. Slower network = longer block times = less ETH rewards Continue reading >>
Bitcoin Vs Ether Vs Litecoin Vs Ripple: Differences Between Cryptocurrencies
By now, you've no doubt heard about the massive bitcoin rally this year . And you may also have read about other cryptocurrencies, such as litecoin and Ethereum , surging too. But there are over 1,300 cryptocurrencies in existence. And while bitcoin dominates the market, several other digital currencies are making waves. CNBC has created a brief guide on how the top five cryptocurrencies by market capitalization, or value in the world, have performed so far this year, and what the differences are between each of them. All market cap and year-to-date rise figures are accurate as of December 14. But because of the frenzy around bitcoin, transaction times have spiked, which could go against the original aims of the cryptocurrency. While Nakamoto referred to bitcoin as electronic cash, many experts have called it "digital gold" and said it could be a long-term store of value. At the moment, some retailers in Japan have begun accepting bitcoin as payment and there are even instances of real estate firms accepting it too . But there is little evidence of widespread use of bitcoin for payments. Ethereum is the name of a blockchain company that has created the digital token ether. But Ethereum and ether are now used interchangeably to refer to the cryptocurrency. Ether is backed by a blockchain, much like bitcoin, but the technology is slightly different and aimed at a specific use case: smart contracts. Take a trade finance deal, for example. This relies on each party in the deal having a paper or digital copy of the contract and needing to update it individually. It's arduous and prone to error. But a smart contract is one that is written in code into a blockchain. Once the terms of the contract are met by each party, a deal will be executed. Many major organizations are exp Continue reading >>
Ethereum Creator Wonders Whether His Currency Should Be Scarcer
Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Ethereum Creator Wonders Whether His Currency Should Be Scarcer In a rare interview, Vitalik Buterin frets over ether supply Notes voodoo economics of digital tokens with no limits Vitalik Buterin, the inventor of the ethereum blockchain, may have created too much of a good thing. The 23-year-oldhelped sell one of the first digital currencies in 2014 when he introduced ether to the public. Three years later hes witnessed scads of other digital currencies raise more than $3 billion in 2017 via so-called initial coin offerings. The sheer number of coins now being created has made him ponder the previously imponderable: limiting the supply of ether. Photographer: David Paul Morris/Bloomberg Im concerned a lot of these token models arent going to be sustainable,Buterin said in a rare interview last week at the Ethereum Developers Conference in Cancun, Mexico. So whats the problem? Theres a hard limit -- 21 million coins -- on the supply of bitcoin, the first successful cryptocurrency, that helps underpin its value. Buterin isnt mulling a cap like that, but hes intrigued by the idea of imposing fees on applications built atop ethereum. Those fees would destroy -- or burn, in Buterins parlance -- ether tokens over time. If the token is being burned, then you have an eco Continue reading >>
What Is Ether?
Ether is a necessary element a fuel for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources). If you just want to test the technology, you probably don't need real ether. Download the latest Wallet app and switch to the Test Network Check your ether presale balance safely here: The total supply of ether and its rate of issuance was decided by the donations gathered on the 2014 presale. The results were roughly: 60 million ether created to contributors of the presale 12 Million (20% of the above) were created to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation 5 ethers are created every block (roughly 15 seconds) to the miner of the block 2-3 ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn't included (called uncle/aunt reward) Note that after the Byzantium update is implemented, the mining and uncle reward is reduced to 3 ethers and 0.625-2.625 ethers, respectively. No. According to the terms agreed by all parties on the 2014 presale, issuance of ether is capped at 18 million ether per year (this number equals 25% of the initial supply). This means that while the absolute issuance is fixed, the relative inflation is decreased every year. In theory if this issuance was kept indefinitely then at some point the rate of new tokens created every year would reach the average amount lost yearly (by misuse, accidental key Continue reading >>
Why Does Ethereum Not Have A Cap : Ethereum
So I am fairly new to this space. Been following since May 2017. Why does Ethereum not have a cap on the coins like BTC? My understanding is they do not want to cap the growth and all the DAPS that are using ETH technology/ smart contract concept. My other question is couldnt they just flood the market with ETH and then the price would go way down due to the ownership %? Continue reading >>
Ethereum Price, Network Value, Market Cap, Supply Details | Onchain Finance
See an error, or have a suggestion? Email info at onchainfx dot com. OnChainFX is a research tool, and should not be considered investment advice. This is a number ranging from -1 to 1, which represents the degree to which movements in the two assets are historically correlated. Specifically, OCFX is calculating the Pearson Coefficient over the daily returns of the two assets. This is calculated over the time-range the chart is set to, and will be re-calculated if the chart's time-range is changed. A negative number indicates that if asset A moves in one direction, asset B has historically most likely moved in the opposite direction. Similarly, positive values indicate prevelance of same-direction moves. Bletchley provides a number of indexes which we feel are consistent and well-constructed. We list three Bletchley indexes today: the daily versions of the Bletchley 10, Bletchley 20, and Bletchley 40. These indexes track large-cap, mid-cap, and small-cap cryptoassets, respectively. These indexes together provide easy to understand insight into the day's cryptoasset price movements: The Bletchley 10 is composed of 10 of the largest cryptoassets, weighted by marketcap. As such, it tends to track the 'large-caps'. The Bletchley 20 is composed of 20 medium-capitalization cryptoassets. The Bletchley 40 is composed of 40 small-capitalization cryptoassets. Together, these indexes give good at-a-glance understanding of how large-caps are performing relative to medium/small-caps over the past 24 hours. For further detail on Bletchley index construction, asset eligibility, rebalancing, and weightings, see the Bletchley Indexes methodology detail page . Continue reading >>
Mining - What Is The Total Supply Of Ether? - Ethereum Stack Exchange
In Bitcoin, the total supply is capped at 21 million BTC. Is the total supply of Ether capped? How much will be mined before the Proof of Stake (POS) transition, and how will POS affect the issuance model? I'm not sure anyone really knows the answer, as it hasn't been decided, AFAIK. Tjaden Hess Jan 25 '16 at 20:42 Thanks. Was afraid of that. Hope that gets decided soon - would vastly prefer a fixed money supply at time of Proof of Stake with mining paid for by transaction fees only. Matthew Light Jan 25 '16 at 21:02 To clarify, homestead and PoS start are not necessarily the same milestone. Makes things a little close, but in my mind that means these are not the same question. Jeff Coleman Jan 26 '16 at 5:39 60 million + 12 million + 18million = ~90million60 million - is the Pre-sale.12 million - is the dev fund, 0.2coins per 1 coin sold in the crowdsale.~18 million - 1 million coins mined per month for 18 months prior to going from POW to POS. Update #1: 91,018,773.78 (April 25, 2017). After a while, 15,626,576 ether won't represent much of the total ether available, making the system dis-inflationary (i.e., inflation perpetually trending towards 0 but never reaching it). is there inflation after all coins are mined? Patoshi Feb 2 '16 at 20:55 @duckx i dont think, because the value will be high and it will keep increasing hopefully niksmac Feb 3 '16 at 2:34 @NikhilM we've seen this story before: if it doesn't take much Ether to actually create a contract then absent other drivers for demand the value will plummet. The rallies are driven purely by the low float, which is great for perception, but one must look at the risk factors for both the economics and their associated investment. Cryptocurrencies make this difficult due to the need to own them as an asset thereby Continue reading >>
Is It Possible That Ethereum Is Not In A Bubble?
Is It Possible That Ethereum Is Not in a Bubble? By Nathan Reiff | November 15, 2017 10:00 AM EST Hydropower: The Key to Bitcoin Mining in the Future? Despite ethereum's meteoric rise in 2017, some experts say it is not in a cryptocurrency bubble. The cryptocurrency space has grown at an astonishing rate in 2017, and ethereum is a prime example. The world's second-largest digital currency by market cap started off the year at just $8 per coin. As of this writing, it is hovering around $333 per coin. This is a gain of nearly 40 times in the span of less than 12 months. By many analysts' estimates, ethereum may be a sign that the cryptocurrency world more broadly is in a bubble. (See more: Ethereum Founder on ICOs: "We Are in a Bubble, A Lot of Projects Will Fail." ) The fact that bitcoin keeps setting new price records and that numerous other cryptocurrencies have made similar gains only adds fuel to the fire. And yet, a recent article by Forbes suggests that ethereum may not be part of a bubble. Although ethereum, bitcoin, and other leading digital currencies have made tremendous gains this year, by some measure they are actually in a bear market . This is because several of these cryptocurrencies have dropped about 20% from a 52-week high. This is one factor that supporters of the movement point to as a sign that ethereum may not be in a bubble. Although the cryptocurrency market climbed to roughly $200 billion in market cap this year, that still pales in comparison to the tech bubble of the early 2000s. The tech bubble grew to about $1.7 trillion before it burst. By comparison, ethereumappears relatively tiny considering its total market cap hovers around $30 billion. Sizing ethereum up against other markets also shows that it's not so big. The U.S. market for rare c Continue reading >>
Ethereum Not Having A Supply Cap Is Not Such A Big Deal
Bitcoin Development Should Not Hinge On Contributors' Identities Ethereum Not Having A Supply Cap Is Not Such A Big Deal Although the Ethereum ecosystem is attracting a lot of positive attention, some questions still linger. For example, there is no supply cap on the ETH tokens, which leads to constant inflation. Switching to proof-of-take would reduce that inflation, but there wouldnt be a concrete supply cap per se. This is one question a lot of investors should think about. Unlike Bitcoin , with its 21 million coin cap, Ethereum has no particular currency supply limit. That may seem after unusual, but in the world of cryptocurrency, that is not uncommon. At the same time, this brings up the question how the value of individual ETH tokens should be calculated. After all, with no fixed supply, these tokens may as well be worth next to zero. According to a Reddit post , the number of issued ETH is linked to the value of a single token. In a way, this means the more tokens are created, the less valuable they become. Such a principle exists in traditional finance as well when central banks print more money. In this case, however, that value is decided by the free market. Some people may wonder what would happen if a rogue developer would try and double the supply overnight. While it is unlikely this will happen, it is a genuine question. Without the majority of network miners approving this change, it will not go through. Moreover, new Ethereum clients would need to be developed to accommodate this change. Even though there is no fixed supply cap for Ethereum right now, there are certain limits. The number of coins added per year varies a bit and is currently roughly 20% of the supply cap. That number can go down, assuming there will be a block reward halving in the futu Continue reading >>
Etc To Limit Token Supply, Become Store Of Value This December
ETC to Limit Token Supply, Become Store of Value This December Ethereum Classic has had a theoretically unlimited supply of tokens, with nearly 13 million created each year. However thats about to change this December, as Ethereum Classic implements a new policy to limit the supply of tokens. The goal is to make the asset a better store of value. ETC prices have exploded in the last few weeks in response. Join the Bitsonline Telegram channel to get the latest Bitcoin, cryptocurrency, and tech news updates: Ethereum, and by extension Ethereum Classic, was created with the idea that there should not be a maximum limit on the amount of tokens. This is in contrast to Bitcoin, which has a hard cap of 21 million. The idea behind the unlimited supply is that tokens would be used to pay for services from the network. Ethereums ether was created not as a currency, but as fuel that powers the network. An overly limited supply could make it impossible to pay the network to operate, which could cause it to fail.Too fewtokens, and the price would not be economical for real world use. An unlimited supply means that prices will always drop as more and more tokens are created and put on the market. Earlier this month, Vitalkin Buterin considered implementing various way to burn, or destroy ether, to control its supply. This means that whenever a certain type of transaction occurs on the network, a small amount of Ether would be permanently destroyed. Ethereum Classic, on the other hand, has a different solution to the problem. The solution Ethereum Classic will use is in its upcoming ECIP 1017 monetary policy. The rules stipulate that starting at block 5 million, or on December 12th, the block reward will drop from 5 to 4 ETC. This downward trend will continue until eventually the blo Continue reading >>
Top 4 Reasons Why Ethereum May Ultimately Fail
Top 4 Reasons Why Ethereum May Ultimately Fail Top 4 Reasons Why Ethereum May Ultimately Fail JP Buntinx July 21, 2017 Featured , Viral Even though weve highlighted some of the criticisms directed toward Ethereum before, theyare not the only issues thenetwork has to address. It is disappointing to see such a prominent ecosystem hindered by technical issues, ideological decisions which can easily backfire, and other factors which may eventually spell disaster for Ethereum. Below are some of the downsides of which Ethereum users and investors alike should be aware. Even though virtually every company or project looking to raise money wishesto conduct an Ethereum-based ICO, these crowdsales can have negative repercussions. Alot of these projects will eventually liquidate the amount of ETH raised and dump it all on the market. Not only will this affect the Ether price negatively, but it also shows Ethereum is merely a facilitator to raise funds, rather than technology in which these companies believe. It is only a matter of time until the influx of cryptocurrency ICOs backfires on the Ethereum ecosystem. There is no guarantee that anyof these projects have legitimate intentions, and any bad PR will automatically taint Ethereums reputation further. While it is true that Ether allows people from all over the world to invest in ICOs, there is never a guarantee for success. Even though many companies have joined the Ethereum Enterprise Alliance , they are not necessarily aware of the issues this network has. We have seen two major exploits discovered and used, both of which resulted in massive amounts of funds being stolen. The first exploit wasthe DAO smart contract bug, andthe second exploit showed how Ethereum has no secure multisignature wallet solution currently. Immature Continue reading >>