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 >>
5 Fast Facts On Ether, The Ethereum Token That's Up 900% This Year - Coindesk
5 Fast Facts on Ether, The Ethereum Token That's Up 900% This Year Bitcoin isn't the only cryptocurrency that's trading at all-time highs. Lost a bit in the mainstream spotlight has been ether , thecryptographic token that powers of the ethereum blockchain . But, when compared to bitcoin's nearly 50% surge in value since the start of the year, ethereum's 900% climb is worth examining in context. From roughly $8 on 1st January to an all-time high of $82 this week, ether has comea long way since its began trading in 2015. Here are 5 things newcomers may benefit from knowing about the market. Since early 2016, ether has been the second-largest market cap of any cryptocurrency, managing to outshine more tenured alternative asset protocols such as litecoin and ripple, according to CoinMarketCap data. This sharp increase has taken place as the broader cryptocurrency space has attracted significant capital inflows, rising almost $7bn in value in Q1 2017. During this time frame, the price of ether returned more than 500%. When examined over a broader time frame, cryptocurrency's price gains have been even more impressive, as ether has appreciated more than 2,800% since it 2015. Ether's trading volume has fluctuated quite a bit during itshistory. Trading activity for this digital asset was very modest at times, with 24-hour trading volume falling below $100,000 in some cases. At other times, this activity surged, with 24-hour volume nearing $600m in March. Overall, however, the market has seen a gradual upward trending, withvolume picking up notably in March and April. What does search interest have to do with price? As CoinDesk contributor Willy Woo has put forward quite a bit given that most traders and buyers Google the price first. (Woo has even described a whole strategy a Continue reading >>
Im Not Worried About Bitcoin Scalability, But I Am Losing Sleep Overethereum
Economist & investor, Editor in Chief at Adamant Research Im not worried about Bitcoin scalability, but I am losing sleep overEthereum With the recent surge in the Ethereum price (ETH reaching 30% of Bitcoins market cap at nearly $5 billion), I find myself reassessing a number of my conclusions, to the point where Im wondering whether it could overtake Bitcoin as the dominant cryptocurrency at some point in the future. Because of various network effects, I hold a cryptocurrency maximalist position, believing that one protocol will eventually win +80% of the market. With that as a given, I currently have a binary view on the ecosystem: either Bitcoin will win, or Ethereum. Here are my assumptions about the Ethereum (ETH) blockchain, compared to Bitcoins: Turing vulnerable, i.e. has a much larger attack surface On track towards a more centralized future Its proposed proof-of-stake mining algorithm wont be more efficient than proof-of-work Will suffer more blockchain bloat than Bitcoin, leading to more risky design paths such as sharding. Based on these assumptions, I had until recently projected a path forward where Bitcoin continues to dominate the cryptocurrency market. However, the following observations give mepause: Ethereum Enterprise Alliance is making a good impression, lending the Ethereum project credibility in the highest levels of finance. Bitcoin faces a scaling bottleneck with no clear short term solution Ethereums current on-chain tx fees are much lower than Bitcoins Its great flexibility makes it attractive to developers Several projects are making the transition to the Ethereum platform, or are creating applications for it: Brave , Storj , Shapeshift . The NY Department of Financial Services (DFS) has given Coinbase official authorization to offer ETH to Continue reading >>
Why Is Ether So Popular, Despite Its Infinite Supply?
Seems like a ponzi where the early "investors" are now benefiting from a flood of hype crazed newbie investors dazzled by "pump and dump" appreciation. We've seen that pattern 500 times on the other Alt coins. Always ends badly. The other altcoins don't offer things that even Bitcoin can't do. Ethereum provides a full development ecosystem, a Turing complete language, and a healthy development team. The inflation rate will be low, and its mandatory because ultimately, Ethereum is a computer that runs contracts in exchange of ether. Its trend now because it has good system unlike any other crypto and it is choosen to be mine by the miner because the block is not difficult to mine and so on its very profitable for miners to mine for this coin unlike bitcoin have diffuculty of blocks and same for others alts are not valuable. Seems like a ponzi where the early "investors" are now benefiting from a flood of hype crazed newbie investors dazzled by "pump and dump" appreciation. We've seen that pattern 500 times on the other Alt coins. Always ends badly. The other altcoins don't offer things that even Bitcoin can't do. Ethereum provides a full development ecosystem, a Turing complete language, and a healthy development team. The inflation rate will be low, and its mandatory because ultimately, Ethereum is a computer that runs contracts in exchange of ether. Its trend now because it has good system unlike any other crypto and it is choosen to be mine by the miner because the block is not difficult to mine and so on its very profitable for miners to mine for this coin unlike bitcoin have diffuculty of blocks and same for others alts are not valuable. Juat admit u have no idea wat ur talking about I welcome anyone to join us at reddit.com/ethtrader and join people who actually m Continue reading >>
How Infinite Are Cryptocurrencies?
23.08.2017 | in Mining | in Mining |494 Cryptocurrencies, apart from their price in fiat money and exchange rates, have many other characteristics, including the total number of coins. Whether this amount is limited, who sets these limits and why, Bitnewstoday.com figures out. When a cryptocurrency is created, its developers insert in the original code the procedure and the amount of supply. In some cases, the limit is set in advance, then the cryptocurrency is mined on a descending principle. For example, only 21 million bitcoins can be mined. According to experts, the global supply of the first cryptocurrency will reach its limits by the middle of the 2100s. In other cases, the currency is being issued at once. In addition, there are cryptocurrencies with unlimited supply. There is also a technical limit which is set to confirm the efficiency or to control the initial inflation rate, and then it is either canceled or increased. "It's not necessary (ed. that cryptocurrency should have supply limit). Dogecoin, for example, does not have such a limit and in theory produces 5 billion coins a year. Peercoin also does not have such a limit. In theory, it can be controlled by using other mechanisms for destroying coins in the network ("burning" when making a transaction, etc.), however, as I understand, the absence of a limit badly affects the coin's inflation. The purpose of this kind of coins is to achieve a balance between the loss of coins (death of owners, burning) and supply. Ether, for example, issues each year 25% of the initial supply. The difference is that the limit motivates to hold on the long term, while its absence on the contrary encourages to spend more," said George Basiladze, co-founder of the Cryptopay service, a member of the ICO Hypethon blockchain fes Continue reading >>
Cryptocurrencies - Limited Token Cap Or Unlimited Emission?
in cryptocurrency 2 years ago (edited) When attempting to value different cryptocurrencies in what can be appropriately referred to as the Wild West of the digital/tech space, one finds himself pondering upon the different properties of the wide array of cryptocurrencies. One of these has been in the forefront of analysis and some simple deductive conclusions have been made. Apart from the data analytics of different currencies from a trading perspective, there is no use in utilizing any of the base principles of stock or company analysis when sp eculating upon the long term potential of different currencies. While trend following and other traditional techniques can be utilized to make sense of the daily/weekly/monthly fluctuations in token price, some properties are simply not analogous to anything in the traditional investment world. The 3 supply classes I've chosen to examine 2. Finite supply with controlled emission 3. Infinite supply with uncontrolled emission Note: not considering infinite supply with controlled emission as no large tokens follow that emission structure. Is any system superior? Are they even comparable? The type of emission of each token can aid one in analyzing the token and one must resist the trap of attempting to apply a universal criteria. There are base implications of these systems that must be considered when examining each protocol in the short-term and long-term. Since most of us in this space share a bullish mind-state we will examine the long-term implications of these different classes. For the sake of simplicity let us examine three digital assets, all with a different supply structure. The first cryptocurrency we will examine is NEM. NEM is a cryptocurrency with the 7th highest market capitalization and has a fixed supply of 8,999 Continue reading >>
Token Standard Extension For Increasing & Decreasing Supply #621
Why Is The Price Of Ethereum Higher Than A Ripple When It Has An Infinite Supply While Ripple's Supply Caps At $100b?
Good question..100 billion is quite a bit. I find different answers and opinions on how much Ether will be created but one of the most credible answers I found, after researching it, are that 60 million Ether were initially created and 15,626,576 will be created per year after. To put things in perspective, just divide 100 billion by 15,626,576 and that will tell you why. The answer is 6,400, so it will take over 6000 years to reach the Ripple supply. Even if the amount of Ether created per year is more than that it will be hard to reach the amount of Ripple. I laughed recently when I saw a question, can Ripple reach 10,000 dollars per coin? Multiply 10,000 times 100 billion lol! Hope that helps? Buy Ethereum as it is the better option. Answered Jan 8, 2018 Author has 739 answers and 2.8m answer views Price is calculated based on the Current circulating supply. ETH Price = Market Cap / Current Circulating Supply = 113,074,346,831 / 96,859,156 = 1167.41 Ripple (XRP) Price = Market Cap / Current Circulating Supply = 96,250,891,895 / 38,739,144,847 = 2.48 All data current as of Jan 08th, 2018. Market cap and circulating supply data from Cryptocurrency Market Capitalizations | CoinMarketCap Answered Jan 8, 2018 Author has 65 answers and 17.5k answer views Ethereum and Ripple operate like this: people use computers to do algorithms, which awards the owners with tokens, or coins. There are only so many coins in circulation. When it is said that there is an infinite supply of Ethereum, it means that there can be an infinite amount of coins mined. With Ripple, there can only be 100 billion coins mined. But that doesnt mean there are infinite Ethereum coins and 100 billion Ripple coins. There are currently about 38 billion Ripple coins in circulation, and a little less than 100 Continue reading >>
Forget Bitcoin And Ethereum: 3 Cryptocurrencies Of Tomorrow
Forget Bitcoin and Ethereum: 3 Cryptocurrencies of Tomorrow Today, Bitcoin and Ethereum are the two most dominant players in the cryptocurrency industry. They are currently the largest and most successful examples of the revolutionary new concept of virtual cash. I touched briefly upon the creation and rise of cryptocurrencies, focusing on Bitcoin and Ethereum, in a previous Pro Trader Today article, Mining for Virtual Gold: Bitcoin and Ethereum. Bitcoin remains in the number one spot with a market cap of over $40 billion and over 16 million BTC in circulating supply. Ethereum follows suit in second place with a market cap of over $17 billion and over 91 million ETH in circulating supply. Following the prosperity of their predecessors, many alternative cryptocurrencies, called "altcoins," have flooded the market, also seeking success. Since 2008, following Bitcoins inception, over 700 different altcoins have been introduced to the market. Many of them operate with a small market capitalization, volumes, and circulation. The following cryptocurrencies, which we will discuss in depth, have the potential to grow into profitable and secure alternatives to the original giants: Ethereum Classic is the product of an unusual phenomenon that occurred at block 1,920,000 on the Ethereum blockchain. On July 20, 2016, the blockchain split into two independent agencies as a result of what experts call the "hard fork" from a serious hack in the Decentralized Autonomous Organization (DAO). On June 28, 2016, the attacker managed to drain more than 3.6 million Ether into a child DAO that has the same structure as the DAO, resulting in a serious price drop. From that moment on, they have worked completely independently of each other , despite their similarities. Ethereum Classic offers m 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 >>
3 Very Bad Crypto Currencies
Litecoin is a pure copycat of Bitcoin. It has different mining algo, and different supply, and a few different specs, but it's essentially a copy of Bitcoin with different parameters. Unlike Bitcoin, LTC has a known inventor Charlie Lee . This is a problem, because it's more centralized if there is a ruler to rule over the coin. Besides LTC doesn't offer any real value, and it's barely accepted by merchants, and nowhere nearly as used as BTC. It used to be accepted, but it isn't anymore, and it's fading away into oblivion. The only reason LTC still exists, is because it serves as a backup if anything bad happens with BTC, and it's also a good testing lab for different software implementations, but other than that, it has no real value or demand. It's the same as Litecoin except it's much worse. It is a joke currency, I don't think you can take it seriously, and it's not just a joke because it was based on an internet-meme, but it's also a joke because it has infinite supply, and endless inflation. It's essentially a fiat currency, backed by nothing, with a fading demand as the meme fades away into oblivion. I can hardly believe anybody uses this currency other than some 10 year old kids, but I hardly believe it has serious investors backing it. It is just pure trash from any point of view you look at it, and I don't see how anyone can invest in such thing. Ethereum started out as a good project with high expectations, and then it fell into a cesspool. The idea of Ethereum was pretty much un-accomplishable, since it promised a Turing Complete system, you know a system that can run any malware on it, essentially making it a live botnet. However they quickly scaled back from this promise and put safeguards against this in the code, making the system very bloated and ineff Continue reading >>
The Ethereum Bug That Could Have Made You Rich!
The Ethereum Bug That Could Have Made You Rich! By Shobhit Seth | March 23, 2018 10:10 AM EDT You may have missed a great opportunity to become a Ethereum millionaire! A major bug, filed under the title Ethereum account balance manipulation, allowed for accessingan unlimited supply of ethers in your wallet by following a series of steps involving a smart contract execution with a faulty transaction or a faulty address wallet. But the opportunity is gone, as the bug is now fixed. (See also, $150 Million+ in Ethereum Accidentally "Frozen", May Need Hard Fork .) A Dutch fintech firm called VI Company identified and reported the vulnerability to Coinbase during December of last year. The largest cryptocurrency exchange of the U.S. promptly took action, but it took almost a month to fix the bug by the later part of January. (See also, Coinbase: What Is It and How Do You Use It? ) The VI Company was rewarded by theCoinbase exchange with a bounty amount of $10,000 for its candid reporting of the issue, and the issue was publicly disclosed. How did the Bug AllowUnlimited ETH Supply? Ethereum uses smart contracts as an integral part of its network. The vulnerability existed during fund transfer through smart contracts in the following scenario. Say, a user used smart contracts to distribute ethers over a set of multiple wallets. This standard exercise would result in multiple transactions on the Ethereum network. If one such intermediate transaction fails, all the other transactions prior to it will also be reversed due to the working mechanism of the smart contracts.(See also, Ethereum Smart Contracts Vulnerable to Hacks: $4 Million in Ether at Risk .) However, the problem occurs on the Coinbase account where these transactions will not be reversed. That allowed for a person t 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 >>
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 >>
Vitalik Buterin: Ethereum Issuance Whatever It Needs To Be For Security
Vitalik Buterin: Ethereum Issuance Whatever It Needs To Be For Security Vitalik Buterin has defended Ethereums supply style and said issuance rates could reduce in future. Ethereum co-founder Vitalik Buterin has confirmed his reasoning behind Ethereums issuance and the unlimited supply of coins. In a Twitter exchange with Ethereum Classic fund creator Barry Silbert and cryptocurrency enthusiast Kalle Rosenbaum, Buterin said the issuance of ETH tokens is whatever it needs to be to ensure reasonable [level] of security. Buterin continued that he considered the Ethereum camp had been consistent regarding issuance, as Rosenbaum reiterated the perspective that the altcoins intended purpose is not as a money system. Ethereum has come under pressure in recent weeks as trading activity served to choke the network and create volatility. The sheer popularity of ICOs using its Blockchain has also raised questions about Ethereums ultimate value, the number of tokens being uncapped with billions of dollars at stake. Responding to Silbert, meanwhile, Buterin said that a future issuance rate for Ethereum could go below 0% once additional features became live. Once Casper comes out, ~0.5-2% annual seems feasible. Once we add partial tx fee burning and if fees go up, may go to 0 or lower. Continue reading >>