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GrowingFromScratch.com
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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.
You had mentioned that Eth is the fuel for the Eth Network, which made it sound like it was another quality of Eth that made it distinct from other crypto. My question was inquiring what then fuels the BTC network? It sounds like each crypto fuels itself via the earning incentive for helping secure the networks.
 

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Discussion Starter #142
You had mentioned that Eth is the fuel for the Eth Network, which made it sound like it was another quality of Eth that made it distinct from other crypto. My question was inquiring what then fuels the BTC network? It sounds like each crypto fuels itself via the earning incentive for helping secure the networks.
Ah. Ok, so with BTC or LTC they serve one function, to move BTC or LTC from one account to the next. That's it. When you move your BTC/LTC/ETH from one account to the next, you pay a fee. That fee can be set by the platform you're using like Coinbase, but for wallets you control you can decide how much to pay for the transaction. The more you pay, the faster the transaction. So yes, in this way, fractions of BTC and LTC are used just like ETH to perform transactions. POW miners are paid to secure the network AND to process transactions. The transaction fee is the "fuel". For BTC it's satoshis or "sats", for ETH it's gwei. They're just fractions of BTC or ETH as a fee.



The difference with Ethereum is that smart contracts mean the types of transactions are numerous and the vision for the platform is that smart contracts/applications can be ran upon it. To make this happen, the "fuel" needs to be really cheap, and at the moment they aren't and the scaling isn't there to make it happen.
 

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GrowingFromScratch.com
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$1900+ .... nice to see after hodling for several years in the $300’s
 

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Discussion Starter #146
$1900+ .... nice to see after hodling for several years in the $300’s
With more and more ETH staked and large exchanges like Coinbase offering easy staking, I think we'll see price climbing steadily over the long run. Right now the waiting list for staking validators is a month long and that's before Coinbase hits the market with their 8.5M ETH. There's an ETH tsunami headed our way and nobody is paying attention because the spotlight is on BTC.
 

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Discussion Starter #149 (Edited)
Can you explain staking? Is some form of collateral?


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I won't go into detail since I've posted a bunch in here. There are currently two ETH chains, the original Ethereum chain that is currently being used, and the beacon chain which was launched in Dec 2020 and will evolve into the ETH2.0 chain. Once ETH2.0 is live the original chain will be migrated over and merged with the ETH2.0 chain.

ETH2.0 brings with it a move from proof of work (POW) consensus to secure the network to proof of stake (POS). With POS you lock up ETH in validator contracts. Validators handle transactions the way that mining does now, just with a fraction of the electricity and better scaling. When you stake your ETH, it's locked into a contract and you can't move it or use it. While it's staked you earn interest on it as a reward for securing the network. If your validator, or the validator you pay someone to run with your staked ETH goes down, you lose ETH. If you act maliciously, your ETH is slashed and your validator is kicked from the network.

Right now staking rewards are around 9% but that will continue to drop until around 5-6% and will level off around there.

355014
 

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Discussion Starter #151 (Edited)
$2,000! What a run
355196


Still very early with a long term strategy, and I believe even early in this market cycle. Next stimulus checks could easily put BTC at 100k and ETH at 5k by the end of the year, especially if large corporations sitting on cash decide to move into BTC as a hedge.
 

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Discussion Starter #152
$2042, new ATH. Again, this was with BTC dragging ETH up. ETH can still gain quite a bit on the ratio, and I don't believe this is ETH's run up. If ETH gains on the ratio back up to .046, we'd be looking at $2,600 ETH in the short term.

Also, anyone that is interested in crypto trading, I strongly suggest you subscribe to Benjamin Cowen. Dude is very smart, holds a PhD, and I'm a fan of his technical analysis. He's very anti-hype and very conservative and careful.

 

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GrowingFromScratch.com
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That was fun while it lasted! I had no intention of selling unless it really took off, but it was encouraging to see for a second time that it does indeed have the potential to do so.
 

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Why is this happening? I’m not scared cause I’m in long term.


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Discussion Starter #157
Why is this happening? I’m not scared cause I’m in long term.
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Look at the last bull run and zoom in. All along the way up there were 30-40% dips yet the bull run continued. We haven't had a significant dip this bull run until now. I think it's away too early to call the bull run over. ETH is up 153% over the past three months still. BTC is up 162%. If support is found and things continue to climb in the next few weeks that confirms the bull run is still on. Also remember that stimulus checks will be going out soon and they will be larger this go around. I suspect plenty of $$$ will flow into crypto. As always time will tell.

As far as Ethereum goes, I'm still as bullish in the long run as ever. Again, the major milestones of ETH2.0, EIP-1559, staking, etc aren't even here. If ETH can hit 2k on it's legacy chain with massive congestion, few L2 onramps, high fees and low transaction count, what can it do when scaling and staking are in place? If anything, BTC and ETH headed down is an opportunity to dollar cost average in and grab even more for the long term, these two coins will continue to be strong and trend upward over time.
 

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Discussion Starter #159
Buying more as it falls is exactly the plan
I would be careful not to go too hard too fast. There may be more pain to come, which again, presents a better entry. This is why I am a huge fan of dollar cost averaging (DCA) and accumulation (HODL) for long term assets. If you're comfortable with the volitivity and can hang on long term, there's little risk in my opinion. If we look at the big institutions, this is exactly what they are doing. They DCA and accumulate and just continue to increase their holdings.
 
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