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Discussion Starter #124 (Edited)
that's a lot of different coins. Surely most will fail?
Just like the dotcom bubble, absolutely. Most of the thousands of crypto projects out there are $$$ grab vaporware if not outright scams.

BAT, LINK, DOT, all seem like very solid projects. I don't have time to follow even a sliver of the projects out there but I'm sure there are some gems that will offer insane 100x+ returns, but for every solid project there are a hundred that won't make the cut. It's one of the reasons I've stuck with BTC and ETH. I've dabbled in others, and every time it's burnt me if I didn't get in and right out to make quick gains. I won't hold anything but BTC and ETH long term.
 

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Ethereum's use case isn't as a medium of exchange, I think that's why so many on here are having a hard time with it because it falls under the banner of "crypto currency". Sure, ETH is the currency/fuel that powers the network, but that's not the purpose of the Ethereum network
Its simple enough to grasp that it’s not so much a currency as it is a network / platform. But what I don’t get is how it is the fuel for its own network, or even why any crypto network needs a “fuel” other than electricity and fiat USD. Nonetheless, I have no doubt that crypto is the future of currency regardless of what role Ethereum plays in its establishment.
 

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Discussion Starter #126 (Edited)
Its simple enough to grasp that it’s not so much a currency as it is a network / platform. But what I don’t get is how it is the fuel for its own network, or even why any crypto network needs a “fuel” other than electricity and fiat USD. Nonetheless, I have no doubt that crypto is the future of currency regardless of what role Ethereum plays in its establishment.
A decentralized network needs to be secured somehow. With BTC and ETH currently, they are both secured, and transactions processed through Proof of Work consensus (POW). An almost unfathomable amount of computing power is securing those networks right now and it's incredibly expensive to do so. With a proof of stake consensus mechanism, securing the network is vastly less resource intensive from a hardware and electricity perspective, but significantly more capital intensive up front since it takes 32 ETH to run a single validator node.

Essentially, gas (small fractions of ETH) is what pays the people securing the network and doing the work so the network can exist in the first place. By it's very nature, a decentralized blockchain has to be expensive to run (everything is relative) in order to be secured from attack.

Edit: I get what you're saying, I guess just think of ETH is stock in a company you earn for performing work. The better the company succeeds the more that stock is worth. Miners and stakers can of course always cash out their ETH for fiat anytime they want. Nobody is going to invest a ton of time, money and resources into something without any return, so miners and stakers expect something for their investment, ETH is the "stock" they earn for securing the Ethereum network.

I was an early miner for both BTC and ETH, at the time it wasn't profitable at the current prices. Most people aren't going to invest serious $$$ into a business that loses money from day one without any payoff. Paying miners in fiat wouldn't make any sense given the costs associated with mining, so receiving BTC or ETH in return for mining, with the hope that one day it would be profitable was a great way to get early adopters to spend a ton of their own money to secure the BTC and ETH networks early on.
 

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Discussion Starter #127
New ATH of $1764 hit today. Still just the beginning. 1000x the throughput with the initial move to ETH2.0, no miners, staking, burning transactions... I'm extremely excited at what's to come, especially as more and more financial services jump on board and built on top of Ethereum.
 

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New ATH of $1764 hit today. Still just the beginning. 1000x the throughput with the initial move to ETH2.0, no miners, staking, burning transactions... I'm extremely excited at what's to come, especially as more and more financial services jump on board and built on top of Ethereum.
it sounds like you don't think it'll go down much, if at all? That something like 1500 is the floor from here forward?
 

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Discussion Starter #129 (Edited)
it sounds like you don't think it'll go down much, if at all? That something like 1500 is the floor from here forward?
I wouldn't say that at all. The crypto market is volatile and so anything is possible. I will say that BTC is looking more and more stable as institutional money gobbles it up and hoards it away for the long haul. We're just now seeing institutional money do the same with ETH but they're about 18 months behind BTC in that arena. Increased stability means that the price floor for BTC and ETH will absolutely come up, but that doesn't mean that the floor is anywhere near as high as $1,500. We could see 1k ETH again easily, it really just depends on how this bull market goes. One thing I wouldn't be doing right now is shorting BTC and ETH on margin, that's a great way to lose it all.

Short term, anything could happen. We could see 20k BTC and $700 ETH, or we could see 100k BTC and 5k ETH. With stimulus finds coming, institutional money, retail on the horizon (retail always FOMOs after big money quietly buys everything up) I don't believe we'll see a bear market in crypto anytime soon, but I could absolutely be wrong.

What I can say with confidence is the long term outlook for Ethereum grows brighter each and every day and that I'm 100% confident that ETH will hit 5k by 2025, and I suspect sooner. Past that is anyone's guess, but I think we'll see a 1T Ethereum market cap fairly quickly assuming the devs deliver.

What would a global stock market all running on top of Ethereum do to the space? What would global lending, banking, credit card transactions and other financial instruments being running on the network do? Long term, things get crazy in my mind when I see the applications and potential for mass global adoption.
 

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Hopefully a simple question here... Would any of you recommend coinomi as a wallet to purchase cryptos? I have an account with them that I had set up some time ago to purchase btc, but it is super easy for a person to get lost researching cryptos, wallets, etc... online. I'd like to continue to invest a little and just want to be as safe as I can be.
 

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I picked up some polkadot and cardano.

Edit. I did misunderstand.
Unless I misunderstood, they are linked to Ethereum and will grow along with it.

I picked up etherium back when it was at 1250,a little late in the game, but, well see.
 

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New ATH of $1764 hit today. Still just the beginning. 1000x the throughput with the initial move to ETH2.0, no miners, staking, burning transactions... I'm extremely excited at what's to come, especially as more and more financial services jump on board and built on top of Ethereum.
Am I reading this right, that ETH2.0 won't involve miners?

I ask because I'm really sick of this long term graphic card shortage. My PC took a dive last month and I've been searching everywhere for a new 3D card.

I ultimately gave up trying to fine one at a fair price. So this weekend I finally paid a scalper for one. It cost me over $1100.00(with taxes) for a RTX 3070.

It's very frustrating for a lot of gamers and PC builders out there, so hopefully this shortage will end soon.
 

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Discussion Starter #133
I picked up some polkadot and cardano.

Unless I misunderstood, they are linked to Ethereum and will grow along with it.

I picked up etherium back when it was at 1250,a little late in the game, but, well see.
Cardano is a direct Ethereum competitor, polkadot is kind of in the grey area there and could be seen as a potential Ethereum competitor but could easily just work along side Ethereum. DOT was stared by some of the early Ethereum devs and seems to be a promising project.
 

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Discussion Starter #134
Am I reading this right, that ETH2.0 won't involve miners?

I ask because I'm really sick of this long term graphic card shortage. My PC took a dive last month and I've been searching everywhere for a new 3D card.

I ultimately gave up trying to fine one at a fair price. So this weekend I finally paid a scalper for one. It cost me over $1100.00(with taxes) for a RTX 3070.

It's very frustrating for a lot of gamers and PC builders out there, so hopefully this shortage will end soon.
Correct. ETH2.0 will secure the network using Proof of Stake (POS) protocol as apposed to the Proof of Work (POW) protocol that BTC and ETH currently use. The benefits of POS are many. With staking pools, drastically lower barrier to entry from a tech and money standpoint for people wishing to secure the network. Drastically lower electricity use, we're talking 1% of what is currently being used, and Proof of Stake nodes can be run on ordinary desktop hardware. Reduced sell pressure from miners having to fund hardware purchases, electricity and housing costs. Increased demand for ETH for staking. Staking ties up ETH so it effectively reduces available supply. Long term projections of .5-2% inflation, which could be even lower with dynamic transaction burning.

So yes, in around a year, the demand for GPUs will be tiny compared to today, and I suspect within another four or five months demand will taper off. Anyone paying attention knows that GPU mining has at best 18 months left in it, so purchasing expensive hardware with a six month or more ROI isn't as strong a proposition as it was when you could use that hardware for 3+ years. Shoot, I'm still using a 6x AMD 480 rig that I setup in 2016...
 

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Discussion Starter #136
so will there be a 2.0 crypto or will ETH, as-ish, remain the primary 'gas'? (am i using 'gas' correctly?)
Right now there is the original ETH blockchain and an essentially BETA ETH2.0 blockchain (launched in Dec 2020). Once development on the ETH2.0 blockchain is complete all current ETH coins will be migrated to the ETH2.0 chain and will be on one shard. Sharding (terrible word, LOL) is pretty much like a really complex raid for hard drives where instead of every node having a copy of the entire chain, it only has a fraction of it, which is one of the areas that L1 scaling/throughput will improve dramatically.

ETH will still be the gas that powers the Ethereum network, that doesn't change at all, just the method for securing the network and a fundamentally better, more scalable blockchain protocol.
 

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Essentially, gas (small fractions of ETH) is what pays the people securing the network and doing the work so the network can exist in the first place. By it's very nature, a decentralized blockchain has to be expensive to run (everything is relative) in order to be secured from attack.

Edit: I get what you're saying, I guess just think of ETH is stock in a company you earn for performing work. The better the company succeeds the more that stock is worth. Miners and stakers can of course always cash out their ETH for fiat anytime they want. Nobody is going to invest a ton of time, money and resources into something without any return, so miners and stakers expect something for their investment, ETH is the "stock" they earn for securing the Ethereum network..
Do all the individual currencies also fuel themselves in the same manner?
 

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Discussion Starter #139 (Edited)
If it becomes that much easier to produce, wouldn't value go down?
Great question. The price of crypto in general is speculative based on a ton of different factors. BTC proponents have taken the "Digital Gold, Hedge Against Inflation" store of value mantra which is based on shared faith in the asset, and since it's scarce, the more people who have faith, the higher the price.

In the case of a utility bases valuation the a blockchain network like Ethereum comes from it's potential application and ability to scale to address demand. I believe that the Ethereum network is both a store of value, and a utility.

In general, Metcalfe's law applies to blockchains, so as network effect grows, so does the valuation of the network.

Proof of Stake requires way less capital investment and much lower electricity than Proof of Work but it also requires 32 ETH to run a full validator. The overall inflation rate of ETH2.0 (issuance) will be more or less static/fixed, and the more validators on the network, the lower the issuance (profit) per validators. It's a similar setup to mining, where the more hash power on the network, the higher the difficulty to mine so that overall issuance is stable. You're dealing with essentially fixed profits, distributed to a variable amount of stakers/miners under either protocol. Put simply, there's just one pie, and the more people at the table, the smaller the slice of that pie they get.

Because of this, difficulty to secure the network is only relevant to the security of the network, not the value of ETH. The difficulty in attacking the network under Proof of Stake is extremely high and very risky because to attack the network you'd need to have control over at least 51% of validators, which at this point is over 2.5B worth of staked ETH and will eventually be much much higher as the price of ETH climbs and the number of validators grows. Any attack on the network is punished with burning of staked ETH by attacking validators. Additionally, validator nodes that go offline lose ETH at the same rate they would have gained ETH via staking to provide incentive for up time.

The economics surrounding Proof of Stake should increase the price of ETH since it increases demand for ETH, and reduces the need to sell ETH to cover expenses by those securing the network. Since ETH2.0 will initially have 1000x the L1 throughput/scaling of ETH1.0, both a utility and store of value based valuation should dictate a significantly more valuable network than Ethereum currently has.
 

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Discussion Starter #140
Do all the individual currencies also fuel themselves in the same manner?
Are you talking about other crypto currencies like BTC and LTC? All decentralized blockchain based networks need some form of security and reward for securing the network. Proof of Work (GPU/ASIC mining) or Proof of Stake are the two major methods of securing decentralized networks. BTC, LTC and ETH currently use Proof of Work consensus. ETH2.0 will use Proof of Stake consensus.
 
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