Fred wilson bitcoin mining
Give China some time to create regulations and legalities and we'll all be better of for it. I believe this will turn out for the best. If I were a big investor I'd rather inevst in an ICO knowing it passed government regulations and is therefore trustworthy, atleast in the sense that I won't wake up one morning only to find out my investment and the company behind it have dissapeared into thin air.
Yes, to all the miner-haters, another reason to learn from. Much as I like ETH, we have to admit that the flood of scamICOs is a direct result of the fact that it becoming big enough and stable enough to host ICOs is what made this explosion of unmined digital assets possible. And that turned out to be irresistible to the scamscum. I hope your definition of cool new invitations doesn't include ico scams.
I'm citing with China on the ico ban. Name 10 ico right off the bat without googling that were not scams. You can't tell it now. We'll see in the future. But ICOs are a perfect structure for scams. No regulation, no responsibility.
Um, you mean to tell me you don't believe these 15 year old keyboard warriors know what they are talking about? They grew up on the internet. Great quote but in this case I think they're banning ICOs precisely because most of them are terrible investments and we're in an "ICO bubble" right now.
The biggest drops are in Chinese tokens like Neo because at least some of their value was based on future ICOs using them as the base token. Other heavily Chinese based tokens like Qtum took big hits as well but since Qtum is technically based out of Singapore and also has support in other parts of Asia it's not as badly affected. Honestly long term I don't know how much this really matters except for Neo, most US crypto investors are "banned" from ICOs and it hasn't changed much lol.
Because it creates uncertainty. In markets that are largely speculative, this can have a massive effect. Formerly assigned new account flair. I wish I would've invested in Bitcoin when it was worth nothing, but then again, I could never bring myself to sell it. It was over 4k a while back, but who's to say it won't go to 10k?
I would never be able to sell it. Multiple Chinese regulatory bodies issued a freeze on ICOs as being unauthorized fundraising tools. They listed some ICOs for local financial regulators to inspect. China didn't ban WTC. They temporarily banned upcoming ICOs until they can get some standards in place. This post has received a 0. This post has received a Bellyrub and 0. Send SBD to bellyrub with a post link in the memo field to bid on the next vote, every 2.
Be sure to vote for my Pops, zeartul , as Steem Witness Hope you enjoyed your bellyrub! For more information, click here! Fred Wilson on Bitcoin steem Created with Sketch. Look how that turned out. And yet, investors were throwing it at them primarily because of greed.
And as with all technologies, there are growing pains. Early bitcoin was filled with inefficient companies and poor custodians. Gox resulted in individuals losing hundreds of millions of dollars collectively. Silk Road made people believe that bitcoin was only for drugs. Yet bitcoin is growing and that perception is changing. Old exchanges are dead or dying. The next stage of exchanges, such as Coinbase, takes both security and regulation seriously. Millions of dollars are spent on security analysts and individuals to work with regulators.
In many cases, companies that are incapable of building out their own secure platforms rely on BitGo, the leading provider of security software in the bitcoin space.
Further, the number of users on the network and the number of transactions they send are growing. Purse enables people to buy goods on Amazon; ChangeTip allows for micro-transactions; and ZapChain is creating an incentive for create high quality discussion. As has been covered by the New York Times and Mike Hearn, bitcoin is going through an existential crisis.
Despite the insistence from many in the bitcoin community to increase the block size, the Core development team has developed its own roadmap on how to scale bitcoin, including an implementation of Segregated Witness via a soft fork. Presently, bitcoin can only handle about 3 transactions per second TPS. For bitcoin to become the payment protocol for the Internet, it will need to be able to support more.
The proposal is to hard fork to a 2MB block size, which is double what the block size presently is. Further, the majority of the miners, including Bitmain, Bitfury, and BW.
The largest wallets and exchanges, including Coinbase, Xapo, and Blockchain. From one side, investors need to buy some ETH to acquire tokens.
From the other side, projects try to hedge themselves by dumping collected Ether on the secondary market. In the long-term, such projects as Melonport will attract even more people into Ethereum ecosystem. The more we use Ether as a currency, the more value it has. This situation kind of evens out everything.
In the future, Proof-of-Stake protocol will be adopted by Ethereum. What does it lead to? There will be simply no miners, only validators. You will be able to stake ethers and receive transaction fees as a reward. Ethereum Enterprise Alliance is a very big deal for our blockchain, because in the end it leads companies to adopt Ethereum public chain.
This will dramatically increase Ether price. If you want details, just watch my video about EEA , I was one of the first youtubers to report on this new organization. Finally, we have price discovery. We are a very young blockchain and we need time to understand the true value of ETH. I am sure that we will not get disappointed when we find the way to value cryptocurrencies. From my point of view, critical bugs are what can bring Ether to its knees. Developers from Ethereum foundation understand it too, so they test their code very meticulously before letting people use it.
A lot of projects that collect funds and dump ETH on digital exchanges for other assets. This hedging really suppresses ETH price. Then, we have competition. Well, ETH has certainly advantage here. We have working blockchain which is already capable of smart contracts. Also, our community has a lot of developers who will be reluctant to move to any other chain if Ethereum satisfies their needs.
What if the developers will be divided by different future vision for Ethereum? That may be a giant problem, actually. It may lead to hardforks and creation of new chains. It will certainly be a negative event for Ether price. I hope that in case Ethereum developers will have different views, they will turn to community to decide. That can be done by voting with ether. Finally, what if governments start banning cryptocurrencies.
Yes, I get it that cryptocurrencies have no borders. Still, if the main countries, which buy and sell crypto, like USA, Germany, Russia declare cryptocurrencies illegal, there will be negative consequences for ETH price.
I hope it will not ever happen, but risk still remains. Decentralized applications will be the gateway of ordinary people to Ethereum blockchain. The more DAPPs are used, the more transactions there will be, the bigger positive effect it will have on the price.
This way you can find whether shares are overbought or oversold. How can I compare those two assets? They both have limited supply after ETH Proof-of-Stake adoption , they are means of exchange even though, gold is not very popular at the moment , both assets are valuable to society. This is the closest comparison, because the only thing VIZA does is it accommodates cashless transactions between people to organizations and people to people.
This is what ether also can do. Can Ether absorb value of a national currency? Well, Ethereum capitalization is already higher than the money supply of Ukraine.
Right now, Russian government is so frightened by cryptocurrencies, it wants to create cryptoruble. They understand that cryptocurrencies are a direct threat to national currencies. It is a threat to any currency. That is why Ether can absorb the value of national currencies if it becomes scalable enough. Some tokens on Ethereum blockchain are already called securities, I do not think we are too far away when money from financial institutions will flow into our blockchain.
It is actually already happening. Maybe Ether is not a security itself, but I am certain that there will be a lot of money infusions into Ethers from Wall Street. What about capitalizations of the assets mentioned above? When will we overcome Bitcoin? It will happen when the capitalization of Ethereum will exceed the capitalization of Bitcoin. Even though, Ethereum currently is twice as big as Bitcoin was in March , it is still behind Bitcoin.
Here you can see the current market cap of Bitcoin. I doubt a ban on cryptos would happen as many of these regulators and politicians are probably already invested in the space. If they decided to do draconian ban, the backlash from their constituency will be quite severe.
I think it's too late for a ban as there is already too much VC money invested in various crypto startups, and those VCs have lobbyists. The one thing that bother me about ETH going into POS is that nobody knows what the long-term inflation rate is going to look like!
BIG question right there. Always good to read one of your in-depth article. Because there is sooo much work done on it right now. It has to pay somehow in the future. Now, as you say, there are risks. Competition might be the biggest for me. But let's take the example of Bitcoin. As Bitcoin was the first coin, it managed to keep its advance a very long time before a concurrent gets close to it.