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 >>
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 >>
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 >>
The Token Handbook Hacker Noon
The ICO Show (had to cancel it took too much of my time) Note December, 2017: Much of this material is now covered in a one-hour video presentation on BrightTalk.com . The slides are on Slideshare . As you can tell, this is a work in progress, I hope you find it useful There wont be millions of tokens. There will be millions of kinds of tokens. RichardOlsen In this essay, I set up the question: how should we allocate value to startups and new projects? This year, were doing it more with tokens than with stock, and theres a general token explosion. So I want to explore tokens and their design space. Ill start with a few definitions, then Ill present the major design elements, and in the final section I present a token taxonomy that breaks out six species of tokens, how they are issued, and how they are used. In the next essay, Ill discuss how to use tokens to fund start-ups. To help communicate, I use the term coin to mean a cryptocurrency. All blockchains have their own native cryptocurrency, which represents a store of value, a medium of exchange, and a unit of account within the blockchain. These are coins. There are only two things you can do with a coin: Use it to pay the transaction fees in a system. Thats all. If it does something more, its a token. Fundamentally, a token is an IOU. It is a contract. It represents rights and obligations. The only token that isnt a contract is an unissued token that is on the shelf. Once a token is issued, it represents value. Examples of tokens: a poker chip, concert ticket, stock certificate, bond, coat-check token, dinner reservation, drivers license, passport, airline ticket, etc. A dollar bill is a token, but a dollar is not. This is what a digital token looks like: This token lets me read a book, because it combines with a t Continue reading >>
Is Ether In Unlimited Supply?
The question is ether unlimited in supply? If so it undermines the whole point of Bitcoin and further conforms my fears that Ethereum is the elites response to Bitcoin. What the central banks need as well as the banks is an expandable supply, does Ethereum give them that? "Ethereum also recognizes that a system intended to serve as a distributed, consensus-based application platform for global economic and social systems, must strongly emphasize inclusiveness. One of the many ways we intend to foster inclusiveness is by maintaining an issuance system which possesses some churn. New participants in the system will be able to purchase new ETH or mine for new ETH whether they are living in the year 2015 or 2115. We believe we have a achieved a good balance between the two goals of fostering inclusiveness and maintaining a stable store of value. And the constant issuance, especially in the early years, will likely make using ETH to build businesses in the Ethereum economy more lucrative than hoarding speculatively." But 90 million ETHER in total(60% crowdsale participants 40% miners until the switch the POS. In 18 months. (Correct me if I'm wrong) Each ether is divisible down to millionths just like bitcoins but in Ethereum they are called 'wei'. I don't expect to see Bitcoin-like bubbles in ether. But a steady increase up to >$10 by the alpha release. And then $30-50 hopefully during my lifetime. I might put my ether towards a distributed Wei faucet and just make money from ads 0x8d1b4e41652eacec5715dc5c4833f6b713573de6 If you agree with me, please support a friend of mine in need. But 90 million ETHER in total(60% crowdsale participants 40% miners until the switch the POS. In 18 months. (Correct me if I'm wrong) Each ether is divisible down to millionths just like bitcoi 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 >>
Reasons To Buy Ether
Cryptocurrency Investing Reasons to Buy Ether Do you like our content? Or, do you want to test out a new wallet? Feel free to send some coins to one of our wallets public addresses. All donated funds will go toward improving the site. Bittrex EtherDelta (Token Exchange) ShapeShift Kraken Coinbase Attention New Cryptocurrency Investor, Dont Let a Correction Shake You What Will Futures Trading Do to Bitcoin and Altcoins? Suggestions on What to Do if You Bought Bitcoin at the Top Bitcoin TIP: Set Stops, Average, Buy the Dips, and Hold Beware the Bitcoin FOMO (Fear of Missing Out on Bitcoin) Coding Mishap Locks up Over $200 Million in Ether in Multi-Sig Wallets Coinone Added Litecoin; Spurring on a Price Bump GBTC Isnt Doing Itself a Favor Being Unclear on the Forks The Risks and Rewards of Being in BitCoin For the Fork Is Bitconnect a Scam? The content of this website is provided for informational purposes only and cant be used as investment advice, legal advice, tax advice, medical advice, advice on operating heavy machinery, etc. Our site is not officially associated with any brand or government entity. Any mention of a brand or other trademarked entity is for the purposes of education, entertainment, or parody. Neither CryptocurrencyFacts.com nor its parent companies accept responsibility for any loss, damage, or inconvenience caused as a result of reliance on information published on, or linked to, from CryptocurrencyFacts.com. In other words, this is a website on the internet offering free information about cryptocurrency, this is not your accountant, lawyer, or fiduciary offering you professional tax, legal, or investment advice. See our about page for more disclaimers and information. There is a Reason Ethereums Ether is the #2 Coin By Market Cap There are some com Continue reading >>
The Rise Of Ethereum Trading Could It Rival Bitcoin?
The Rise of Ethereum Trading Could it Rival Bitcoin? Cryptocurrencies are the most intriguing creations of modern times. When Bitcoin was first created in 2008, nobody really thought it would ever become a mainstream currency, but today, you can pay for all kinds of things in Bitcoin and there is even a property currently for sale in London that can only be bought using Bitcoin. Most people have heard of Bitcoin, but Ethereum is less well-known . But, this looks like it will be changing very soon. Ethereum came into being in 2014, thanks to the success of blockchain development. It is a decentralised platform running contracts and applications. These transactions are not free, so they are funded by Ether, a small piece of code. Like Bitcoin, Ether are mined, so when a bundle of transactions is discovered, Ether are created (around 5 every 12 seconds, which is 18 million per year). Transactions are safe, secure, and free from third-party interference. Bitcoin has doubled in value this year, but Ether, which runs on the Ethereum blockchain, has shot up in value by more than 2,400%. The Ethereum Enterprise Alliance (EEA) was formed in 2017. This has allowed individuals, startups, and other interested parties to work together using the latest technology. Founding members of the EEA include Microsoft, Santander, Intel, Credit Suisse, and JP Morgan. The formation of the EEA, backed by some of the biggest names in finance and technology, proves that Ether is here to stay. There is growing interest in cryptocurrency trading, but cryptocurrencies are highly volatile, this is not an investment for the faint-hearted. Nevertheless, it is possible to make serious money investing in Ethereum and other cryptocurrencies. Many people remain suspicious of cryptocurrencies because they a Continue reading >>
Why Ethereum Has Value?
BuyUcoin a Cryptocurrency Exchange platform in India. An entrepreneur at heart, currently, he is working on Blockchain technology to make most out of it and Love to build new products. Although there are many cryptocurrencies out there competing with Bitcoin to get the market share, none of them have been able to challenge the latter but one of course named Ethereum, which has become the second most popular crypto in the world. But what is Ethereum and how it is different from Bitcoin? Ethereum is often touted as a world computer. What that fancy language really means is that Ethereum is a platform for the creation of decentralized applications (dapps), using what are known as smart contracts. Smart contracts are bits of code that automatically execute an action after certain requirements have been metsay, sending a slice of an apps profits to investors after a predetermined date has passed. Bitcoin has smart contracts too, but Ethereum makes them really easy to use since theyre baked into the systems design. All of this takes place on a blockchain, which Bitcoin uses too. All ablockchain does is act as a public ledger that lists everything that goes on in the network in real-time. Its the tool that makes the whole thing possible. The blockchain, and thus the Ethereum network, is distributed across thousands of computers (or nodes) around the world. Its also Turing complete, which means that smart contracts on the blockchain can handle most computational functions, allowing them to be pretty sophisticated. For example, say that I want to send my colleague Jordan some money. I would register this contract between myself and Jordan on the blockchain and the Ethereum network would automatically facilitate the exchange of money. Since the blockchain is a public ledger, any Continue reading >>
How Many Bitcoins Are Yet To Be Mined?
The galloping growth of price of Bitcoin and Ethereum increases the hype around digital currencies. There is a growth of both money supply and investments in both BTC and ETH. More and more often we see questions on how much bitcoins and ether have been mined and can the supply meet everybodys demands. Bitnewstoday aims to answer these questions in the following article. Cryptocurrencies with limited and unlimited supply Digital currencies can be divided into two types: with fixed supply, when a limit of coins emission is pre-installed in their structure, and with uncontrolled supply, when coins, contrariwise, can be mined forever. Among the 25 most capitalized cryptocurrencies, 17 (or 68%) of them have a limited supply. These are: Bitcoin (BTC), Bitcoin Cash (BCH), Ripple (XRP), Litecoin (LTC) etc. Remaining 8 cryptocurrencies of the list have no emission limits for example, Ethereum (ETH), Monero (XMR), NEM (XEM) etc. You can check out the chart below to see the distribution of mined coins which have a limited supply. Table 1 Emission of 25 most capitalized cryptocurrencies Source: Bitnewstodays calculations based on Coinmarketcap data At the press time, more than 16.7 mln of bitcoin already circulate on the digital currency market, which makes 79% of established bitcoin supply limit. In other words, only 4.3 mln of bitcoins remain to be mined. Bitcoin supply speed is written in its code and is strictly limited. Every 4 years, the mining halves. Apart from this, as the stats below show, every new block is harder to mine every new month. Somewhere around 2140 the last 21 millionth bitcoin will emerge, and it is hard to predict what happens next. Some experts believe that at that time the price of Bitcoin will be more than a thousand times larger than the current one d 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 >>
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 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..why You Need To Invest
Simply put it that ethereum is a public blockchain platform like bitcoin which comes with programmable transaction functionality. It also provides a decentralized online machine that can carry out peer-to-peer contracts using what we call Ether, a crypto asset. Some ICO investors see Ethereum as potentially overtaking Bitcoin as its price goes high in the coin market. What makes Ethereum different from other cryptocurrencies? What makes Ethereum different from other cryptocurrency is its technology. Ethereums coin value is referred to as Ether, and just like Bitcoin, it is bought, sold and used by those that invest into ICO opportunities. Ethereum also allows faster transactions, its block time is set to twelve seconds, and it does this successfully using the ghost protocol. Ethereum uses a different method for transaction charges depends on its bandwidth use, storage needs and computational complexity, this function can be called Gas in Ethereum and it is limited per block Ethereum allows decentralized mining by individuals using their GPUs and also uses Ethash, a memory hard hashing algorithm that abate against the use of ASICS Ethereum provides platform for every field application that runs on blockchain which is why it is said to be the backbone of the crypto world. The only drawback it has is having an unlimited supply, so it would always have sufficient supply for the demand yet its utility is exceptional and it would continue to rise in future. Here are few reasons why you should make future investment with Ethereum; With prices going higher, ethereum is said to have build up on organic growth, without incessant large spikes, and it seems to be stable and if possible even predictable. Ethereum blockchain remains in demand despite the cyber attacks and history of 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 >>