Coinbase Suspends Ethereum Classic After Blockchain History Rewrites
Crypto exchange Coinbase has halted all ethereum classic transactions, withdrawals and deposits due to a series of blockchain history reorganizations on the network. Ethereum classic saw more than 100 blocks ?reorganized? during a potential 51 percent attack late Sunday, according to at least two different block explorers ? Bitfly (Etherchain) and Blockscout. Coinbase said in its blog post that it detected some 88,500 ETC being double-spent (totaling some $460,000). Media publication Coinness reported Monday that an in-house analyst had detected an abnormal hash rate (or computation energy) going into a single mining pool, potentially causing mass reorganizations (reorgs) of mined blocks. Though initially refuted by the core proponents behind ethereum classic on Twitter, the official account has now affirmed potential cause for concern, tweeting out: This posting was retrieved by us on January 07, 2019 11:28 PM. Visit www.coindesk.com for additional posts.
Coinbase halts ETC withdrawals after detecting 51% attack
Page 3 of Satoshi Nakamoto?s whitepaper, Bitcoin: A Peer-to-Peer Electronic Cash System, states the following: ?If a majority of CPU power is controlled by honest nodes, the honest chain will grow the fastest and outpace any competing chains.? The ?honest[y]? of more than half of miners is a core requirement for the security of Bitcoin and any proof-of-work cryptocurrencies based on Bitcoin. Honest action, in this context, means following the behavior described in the Bitcoin white paper. This is sometimes described as a ?security risk? or ?attack vector,? but is more accurately described as a known limitation to the proof-of-work model. This post was obtained by us on January 07, 2019 11:20 PM. See blog.coinbase.com for more.
Ethereum Classic Might Have Been Hit by a 51% Attack
Late last night on Twitter, the official Ethereum Classic team noted that possible chain reorganization and double spend attacks are ongoing. They subsequently asked crypto exchanges and ETC mining pools to require as many as 400 confirmations for withdrawals and deposits. There have been rumors of a possible chain reorganization or double spend attack. From what we can tell the ETC network is operating normally. BlockScout's "Reorg" section shows nothing of the sort.https://t.co/Yi2cXusCz9 pic.twitter.com/HdUtS0DJZK ? Ethereum Classic (@eth_classic) January 6, 2019 The team noted that, to their knowledge, the ETC network is operating normally. This piece was first found by us on January 07, 2019 10:57 PM. Check out www.ccn.com for complete listings from this source.
Ethereum Classic has experienced multiple 100 reorg attack
This piece was obtained by us on January 07, 2019 10:04 PM. Have a look at messari.io for more.
Nevada: Storing marriage certificates on the Ethereum blockchian
News and Resources For The HODLER In You Nevada?s WashoeCounty is quite ahead in the race when it comes to blockchain use in government programs. Now it?s time for marriage certificates that will be available on the blockchain. Citing specifically the use of DLT to issue digital marriage certificates, the Silver State had already integrated the technology or were running trials. In April 2018, Washoe County issued its first marriage certificate which was stored on a blockchain. In total, 950 such digital certificates, which use smart contracts on the Ethereum blockchain for security, had been issued to couples residing both within and outside Nevada. This item was discovered by us on January 07, 2019 9:56 PM. You may want to visit blog.bankofhodlers.com for additional posts.
Ethereum Foundation announces major grant to Parity Technologies
The Ethereum Foundation is thrilled to announce a scalability, usability and security grant of five million dollars (USD) to Parity Technologies. For several years, Parity Technologies has been an invaluable member of the Ethereum ecosystem for their leadership in core development efforts, their Parity Ethereum client and more. Their work has continued at a blazing pace. At Devcon4 in Prague, Parity team members presented their plans to develop a Serenity implementation, exampling an exciting direction for the years ahead. By all metrics, Parity is a major technical contributor to the Ethereum project, and they?ve notably done so as a self-financed and open-sourced effort since their founding. This information was first found by us on January 07, 2019 8:13 PM. Have a look at blog.ethereum.org to find more similar content.
I wrote an overview for Canto, a new Ethereum scaling mechanism. Let me know what you think.
This article was first found by us on January 07, 2019 7:46 PM. Have a look at link.medium.com to find more similar content.
[Part two] - Unit Testing - Build Decentralized Domain Name System on top of Ethereum
Whether you develop software yourself or hire developers to build it for you, you expect them to do everything necessary, so you can get functional and bug-free software. Sometimes, however, doing the right thing takes additional time, which is often being skipped due to all the deadlines, budget or some other reason. In blockchain development as in the traditional software development, unit testing reduces the number of bugs, making it ?a must? to effective software development. In this article, we are going to look at this type of testing ? unit testing ? and why you should not cut corners and skip this part of the software development cycle. This entry was first found by us on January 07, 2019 7:31 PM. See hack.bg for additional posts.
Bitcoin ethereum CLASH: War of words ERUPTS between cryptocurrency big hitters - Express
Ethereum mastermind Vitalik Buterin fired the first salvo as he turned his guns on Bitcoin Cash breakaway ?Bitcoin SV?, branding the project as ?a dumpster fire?. The Russian-born programmer, who now lives in Canada, hit out at the people behind Bitcoin SV (Satoshi Vision) after being asked about bitcoin?s involvement in the Lightning Network. ?I have my disagreements with the bitcoin roadmap, proof of work etc, but they?re trying to do something that?s genuinely cool tech,? answered the 24-year-old before bizarrely turning his ire to Bitcoin SV by adding: ?BSV is a pure dumpster fire.? His ?dumpster fire? comments have now prompted a stern rebuke from one of the leading figures behind Bitcoin SV ? Dr Craig S Wright. This entry was first found by us on January 07, 2019 7:02 PM. Browse www.express.co.uk for more similar content.
CANTO - Scaling Ethereum through ephemeral economies -- Trenton Van Epps
To date, scaling Ethereum has taken two forms: Layer 1 client improvements (L1), or Layer 2 (L2) mechanisms. While L1 scaling is realised through incremental code upgrades, L2 comes in the form of higher level external systems that leverage the greater security of the basechain. Canto?s unique value proposition emerges as a hybrid with a foot in both camps. Simply put, client changes in the form of a new L1 subprotocol would enable L2 mechanisms to bloom more easily. The spec was recently released to the ETH Magician?s forum, check them out below: I highly recommend reading both in full, as most of the information in this overview is taken in some form from there. If you?re short on time or technicals, follow along as we jump into what makes Canto an idea worth pursuing. This information was discovered by us on January 07, 2019 6:48 PM. Check out medium.com for more similar content.
Raiden: Ethereum s Payment Channel Network --SurferFC
The Raiden Network (RDN) is one of the first generic scalability solutions released on the Ethereum mainnet. Built as Layer 2, it is a Payment Channel Network, or a network of individual payment channels that can connect with each other like the internet to allow payment from Party A to Party Z. This network runs connected to but more importantly off the Ethereum main chain. But before we continue let?s understand how it interacts with Ethereum. To get funds onto the Raiden Network you need to deposit (lock up) funds (ERC20 tokens) off the Ethereum chain. This is done via the Raiden Network Smart Contract which has an API so that any app creator can easily plug in this feature into their app. This item was discovered by us on January 07, 2019 6:20 PM. Have a look at medium.com for additional posts.
Japan s FSA Considering to Approve Crypto-Backed ETFs - Assessing interest in Ethereum-backed ETF.
Please check your inbox for our authentication email. Thank you for registering to Finance Magnates. Please open the email we sent you and click on the link to verify your account. The Financial Services Agency, Japan?s financial market watchdog, is exploring the idea to allow cryptocurrency-based exchange-traded funds (ETFs), according to a recent Bloomberg report. This comes almost a month after the market watchdog shelved its plans to allow crypto-backed futures in the Japanese market. The regulator even abandoned its plans to revise the existing securities laws of the country which would have paved a path for crypto options and derivatives. This entry was found by us on January 07, 2019 5:45 PM. Browse www.financemagnates.com for more.
Popular Ethereum DApp EtherGoo Has Converted to TRON With New TronGoo DApp
EtherGoo, a popular decentralized app on the Ethereum blockchain has now entered the Tron blockchain with a new DApp called TronGoo. Tron Arcade announced recently that TronGoo, a revitalization of the popular Ethereum game EtherGoo, is coming to the Tron network. The goal for players in the game is to gather as much Goo as they can, either by producing it themselves or by stealing it from others. The more Goo players collect the more TRX they earn. EtherGoo was the first competitive idle game that used the blockchain, and after it launched, it quickly overtook CryptoKitties as the #1 DApp regarding daily active users and total transaction volume. This share was discovered by us on January 07, 2019 4:51 PM. See blokt.com for complete listings from this source.
Ethereum s PoS could potentially cut power consumption by 99%
One of the biggest backlashes against cryptocurrencies is the huge amount of power they consume. Bitcoin itself consumes as much power as the country of Iceland, and Ethereum is no different, even though the cryptocurrency is a quarter of what Bitcoin is. According to IEEE, ?A typical Ethereum transaction gobbles more power than an average U.S. household uses in a day? Ethereum?s founder Vitalik Buterin, has expressed his concern over this. With the slowing of Ethereum?s transaction speed and the rising energy consumption concern, developers from the Ethereum foundation plan to test out the PoS (proof of stake) algorithm which in theory could reduce power consumption by 99%. This piece was first seen by us on January 07, 2019 3:36 PM. You may want to visit blockmanity.com for complete listings from this source.
Daily Market Recap - 01/07 - Monday Morning Climb For The Crypto Market, Bitcoin Retakes Initiative From Ethereum
Monday morning came and the crypto markets awoke from their long sleep. The board is back to a vibrant green as most coins in the Top 100 moved with Bitcoin and the market climbs 5% on the day. After hanging around the $130 Billion over the weekend, the total market capitalization has increased to $136.6 Billion during the past 24 hours. The trading volume is still pushing up and is currently at $18 Billion. The BTC dominance is beginning to kick back again at 51.7%. Bitcoin threw one big green candle this early morning. Although the jump has almost reached as high as $4100, it has been rejected. Currently, it is defending the level and is at $3965 on Binance (Tradingview). It has earned 5.20% on the day and the trading volume has pumped to $5.7 Billion from yesterday?s $4.9 Billion. Its total market cap is also growing back at $70 Billion at the moment. Should it continue correcting, $3920 is still supported. This item was first found by us on January 07, 2019 3:29 PM. Visit dna.coinve.st for more from this source.
Ethereum, TRON, Iota Lead in Peformance Adjusted for Risk by Sharpe Ratio, Bitcoin Underperforms
Ethereum, TRON, and Iota have outperformed most other major cryptocurrencies by the 30-day Sharpe ratio, a measure developed by Nobel laureate William F. Sharpe to evaluate the return of an investment relative to its risk. Meanwhile, Bitcoin?s performance was dismal. Within the last 30 days, the market has experienced a robust recovery after bottoming out in December. One indicator, the Sharpe ratio, calculates the performance of an investment adjusted for the risk-free interest rate per unit of volatility. To calculate the Sharpe ratio, first, the risk-free rate is typically determined using U.S. Treasury Bills as a zero-risk benchmark. Then, over a given period of time, the rate of return of an investment is calculated. The risk-free rate is subtracted from the rate of return of the investment to produce the amount of excess return. Finally, the excess return is divided by the standard deviation (volatility) to produce the Sharpe ratio. This publication was first found by us on January 07, 2019 2:50 PM. Check out cryptoslate.com for more.
ETC under 51% attack
Latest news About Crypto Currency The news or the ?unconfirmed rumors? that Ethereum Classic is undergoing chain reorganization and was under double spend attack seems to be coming true. This was first reported by the security firm SlowMist and, over the last couple of hours, the blockchain has undergone several block reorganizations as reported by Ethereum Classic explorer BlockScout. Earlier today, a certain section of the media send out news that according to Chinese security firm SlowMist, the Ethereum Classic (ETC) network is prone to a possible 51% attack and crypto exchanges with ETC listings are advised to strengthen guards. This news even led to a sudden drop in Ethereum Classic prices. This item was discovered by us on January 07, 2019 1:26 PM. Have a look at www.cryptonews24x7.net for more similar content.
Nevada Issues Almost 1,000 Marriage Certificates on Ethereum, But Gov t Acceptance Varies
Blockchain is facing some obstacles to acceptance at local government level in Nevada despite proactive policy. Despite a proactive policy, blockchain is facing hurdles to acceptance at local government level in Nevada Blockchain technology has already found its way into local government services in the United States, but Nevada particularly is proactive, the AP reported on Jan. 7. Citing specifically the use of blockchain to issue digital marriage certificates, the publication found that two counties in the Silver State had already integrated the technology or were running trials. In total, 950 such digital certificates, which use smart contracts on the Ethereum blockchain for security, had been issued to couples residing both within and outside Nevada since April 2018. This article was found by us on January 07, 2019 12:42 PM. Check out cointelegraph.com for more similar content.
Ethereum Price Uptrend Stalls Following Steep ETH/BTC Losses
After enjoying a rather positive wave of momentum it seems the Ethereum price action is stuck in sideways momentum again. Despite a minor gain in USD value, the losses in ETH/BTC are piling up fairly quickly. This has some users concerned, even though it seems no real changes should be expected prior to the upcoming Constantinople hard fork. A lot of Ethereum enthusiasts are looking forward to the upcoming Constantinople network upgrade. This new development will create another hard fork of Ethereum, although one that also paves the way for reduced block rewards and an eventual switch to proof-of-stake. Despite a failed test launch of Constantinople earlier, it appears most of the kinks have been ironed out in recent weeks. This information was first seen by us on January 07, 2019 12:41 PM. Have a look at nulltx.com for complete listings from this source.
Kicking off 2019 STRONG as Bitcoin rises above $4000, transaction fees drop, and Ethereum retains it's 80%+ gains and keeps on rising...
About Global Crypto Press Association Global Technology News Network. The cryptocurrency market's are off to a great start in the new year, and while there's been countless predictions saying 2019 i... This article was obtained by us on January 07, 2019 11:43 AM. You may want to visit www.globalcryptopress.com for more.
Digital marriage certificates being secured by the Ethereum blockchain
In April last year, the Washoe County in Northern Nevada announced it was partnering with blockchain startup, Titan Seal, to offer digital marriage certificates. Since then, around 950 digital certificates have been secured using the Ethereum blockchain, according to a report by the Reno Gazette Journal. ?April 10th was the first time a person got (a digital marriage certificate from Washoe County)? The person had no idea that it was part of a pilot program,? Titan Seal Co-founder Phil Dhingra told the Reno Gazette Journal. Before Washoe County?s marriage certificates are emailed, Titan Seal generates a secure cryptographic hash representing the certificate on the Ethereum blockchain. This information was first seen by us on January 07, 2019 8:55 AM. See micky.com.au for more.
Ethereum Price Analysis - ETH is consolidating recent gains against USD and may soon break the $160 resistance to move higher.
-Bitcoin news, price, information & analysis Ethereum price is consolidating recent gains against the US Dollar and bitcoin. ETH/USD may soon break the $160 resistance and continue to move higher. Recently, there were bullish moves in ETH price above the $145 support against the US Dollar. The ETH/USD pair traded above the $150 and $154 resistance levels to move into a bullish zone. It even spiked above the $160 level and traded as high as $160.12. Later, it started a downside correction and traded below the $157 support. It also moved below the 23.6% Fib retracement level of the last wave from the $147 low to $160 high. This data was first seen by us on January 07, 2019 7:31 AM. Browse www.newsbtc.com for complete listings from this source.
[TEXT] Eth2.0 Implementers Call #9 Notes (01/03/19)
GitHub is home to over 28 million developers working together to host and review code, manage projects, and build software together. This piece was discovered by us on January 07, 2019 6:30 AM. Visit github.com for more similar content.
All-Time Volume Weighted Average Price of Ethereum
This piece was discovered by us on January 07, 2019 5:29 AM. You may want to visit christianott.co for more from this source.
The Stealth Takeover of Ethereum
Ethereum's Hard Fork Constantinople: What You Need to Know Before January 16th
The long-planned Ethereum fork is coming on Jan. 16th. With Constantinople going live within weeks, here?s what is important to know. Constantinople is one of the key milestones in Ethereum?s roadmap to version 2.0, which moves the protocol from proof-of-work (PoW) to proof-of-stake (PoS). Compared to the larger plan, Constantinople?s changes are minor. The update introduces a few new opcodes?pieces of logic programmers use to develop smart contracts, delays the intensity of the mining ?difficulty bomb? and reduces the reward for finding blocks, and alters and optimizes the way gas is consumed. This data was first found by us on January 07, 2019 12:26 AM. Have a look at cryptoslate.com for more.
Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) & ZCash (ZEC) technical analysis - 7th Jan - XRP NEWS ONLINE
Everything about XRP Ripple Coin Everything about XRP Ripple Coin Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), ZCash (ZEC): 24th Dec NOTE: xrpnewsonline bears no responsibility for any losses incurred on the reliance on the information in these buy/sell signals. Please be informed about the risks and costs of trading in financial markets. Cryptocurrencies are an extremely risky investment. It is a long established fact that a reader will be distracted by the readable content of a page when lookin This piece was first found by us on January 06, 2019 11:32 PM. Have a look at xrpnewsonline.com for more from this source.
CoinFi Crypto Research - Cryptocurrency Trading Signals - Episode 003: Is Ethereum Overvalued
All Categories ?>? Crypto Trading Podcast ?>? Episode 003: Is Ethereum Overvalued? It?s a question that everyone has an opinion on, yet has no definitive answer?is Ethereum overvalued? CoinFi?s Chief Data Scientist Alex Svanevik and co-founders Tim Tam and Han Chang dig into and attempt to answer this burning question in this episode of the CoinFi Podcast. Tim: As a trader, generally you can sell one third of the market volume without impacting the price, so 6.2 billion of Ethereum dumping should not move the Ethereum price at all, given that it trades two billion a day. I mean, over 10 days, people would just be able to sell it. ------------------------------- Nate: Welcome to the CoinFi podcast. We have a lot of random conversations about crypto in the office, and we thought it would be interesting to just hit the record button and riff on whatever topics come to mind. The idea is that you get to be a fly on the CoinFi office, giving you an inside perspective on how the team members of a fast growing crypto start up look at this crazy new industry. The CoinFi team has an interesting mix of backgrounds, from co-founding a hedge fund, to launching a Bitcoin exchange in Shanghai, back in 2013, to heading algo development for major banks, to managing data science for online brands with hundreds of millions of pages a month. And on each episode, we're pulling different team members to talk about areas where they have professional expertise, or maybe even just a strong opinion. Han: What's up CoinFi fans? Welcome back to another episode of the CoinFi podcast. Thanks so much for joining us today. Today we're going to be attempting to answer a question that's basically impossible to answer. It's a question that everyone in crypto, not to mention the mainstream press, has an opinion on. We're asking and attempting to answer the question today, is Ethereum overvalued? Han: I'm your host Nate Tsang, and with us today are CoinFi co-founder, CEO and former hedge fund trader turned crypto trader, Tim Tam. With us also is CoinFi co-founder, CTO and ex-co-founder of defunct Chinese Bitcoin exchanges Bit Excess, Han Chang. And finally, with his first ever appearance on the CoinFi podcast, our very own Chief Data Scientist, Alex Svanevik. Say hi to the audience, Alex. Alex: Hello guys. What's up. Nate: I'm gonna kick this episode off by quoting Vitalik's tweet storm from December 2017. Back then, he said: "So total crypto coin market cap just hit .5 trillion today. But have we earned it? How many DApps have we created that have substantial usage? How much censorship resistant commerce for the common people have we enabled? How many unbanked people have we banked?" Nate: As of today's recording, in June 2018, Ethereum has a market cap of roughly 50 billion, and a price of roughly $500. Now there are obviously a lot of different ways to value Ethereum and crypto in general, but here Vitalic brings up a common criticism of crypto's market cap, which is that the market cap far outweighs the practical and economic value currently being generated by the blockchain. I just wanted to get each of your reaction to Vitalic's comments, and then more generally your answer to the initial question: Is Ethereum overvalued? Alex: So I think it's hard to disagree with Vitalik in general, right? I would probably say that he's probably spot-on in the sense that money generally moves faster than how fast people can build products. So I think that's very much the case with Ethereum. You spend a lot of money invested in this space, I don't think developers have had enough time yet to produce the products that they are thinking about producing, and I think the result of that, we've kind of seen in January where you saw a big spike in many of the crypto prices, and then it's cooled off in the last couple of months. So I think, at a high level, Vitalik is pretty much spot on in his assessment there. Tim: Yeah, it's interesting you mention that, Alex. I guess mostly with what Alex says, but in terms of the broader question I've always thought of when you mention that name is when you talk about value, what is the definition of value? Are we talking fundamental, or are we talking how, I think what a lot of people in the crypto markets are looking at, is is the price of Ethereum going to be higher or lower in a year's time, in a month's time, in a five year's time, or is it an academic argument? Just kind of an open ended question. Like how do we determine value? Is it just a measurement of the price, or is it a measure of fundamentally how we should be looking at what the price of Ethereum is? Han: I'm gonna go out on a limb and I say, regardless of the definition, Ethereum is undervalued in my strong opinion at the moment. I mean, obviously, the recent SEC decision to have Ethereum not be classified as a security has helped the price a bit, but even then, Vitalik's statement in 2017 saying, hey guys, we really should be building more, I definitely agree with. There needs to be additional technological progress, but in terms of what Ethereum is capable of today, and the maturity level that it's at, as well as kind of the roadmap that is in place, that they're still working towards, I think that actually unlocks a ton of value. Han: So just for example, just the fact that we're able to tokenize anything, assets, basically anything, is already kind of the killer feature. Everyone's saying, oh, there is no killer DApp. CryptoKitties is the best that we've got, and I would really beg to differ, because, obviously as CoinFi, we raised money through an ICO to fund our platform, and that is a pretty killer feature in my book. Tim: Yeah, so Han, I think we've kind of had internal debates about this. Look I agree with you that Ethereum is valuable, but again, putting my finance hat on, what number do you associate with that? There clearly is value in the ability to raise money by an ICO on the Ethereum blockchain, but is that value 50 billion? Is it 500 billion? Is it 5 trillion? I mean, how do we quantitatively look at that? I think, with respect from an engineer's point of view, I think it is definitely valuable, but how do you prescribe an actual value to it? Because in finance, we traditionally, there are very concrete measures to measure this. Like people use like a discounted cash-flow model, or a price-earnings model. There's some association with revenue and profit, right? So how do you come up with a number on how to value Ethereum? Alex: Yeah. I agree with that in the sense that I think you can take kind of an academic approach, look at the fundamentals. The other thing you can look at is just the change over time. Which is probably what most people do when they think about the price of Ethereum. Is something going to happen in a couple of months that will increase the demand for Ethereum? Perhaps, we can say that there's a third way to try and come up with an assessment of the price of Ethereum and that's relative to other crypto projects, relative to other block-chains for instance. We have EOS that came out quite recently. It's valued, I think, a fifth of the price of Ethereum. Is that a fair assessment? Alex: Of course we run into issues, because then how do you value EOS, right? But you can look at the relative differences as well. I think that's another angle you can take, to compare it to other block-chains. Han: No, great point guys. So I guess part of my argument is that, because of all of these different blockchain projects who are raising money in Ethereum, they need operational capital to actually run their businesses, and build the products that they promised their supporters, and so as a result, they need to sell off their Ethereum to fund their operations. And as a result, I feel like a lot of the price changes in Ethereum has been partially been because of all of these projects needing to sell-off their Ethereum back into fiat to handle operational expenses. That's kind of artificially keeping Ethereum prices down. Tim: So I think that's a fair point, Han, and high level I agree with you. That's a logical argument. But when I actually dig and look at the numbers, I think ICOs raised last year on EOC 20 raises, is like 5.6 billion in 2017, if I remember correctly. And the first quarter, 2018, it's 6.3 billion. But the reality is, if everyone in the ICO market this year dumped and converted their Ethereum into US dollars, which obviously is not true, but let's take that argument if it is. That's only 6.2 billion US notional worth of Ethereum to sell. Tim: Ethereum trades 2 billion a day across all markets, and I'm not sure if this is the right way to look at it, but as a trader, generally you can sell one third of the market volume without impacting the price. So 6.2 billion of Ethereum dumping should not move the Ethereum price at all, given that it trades two billion a day. I mean, over 10 days, people would just be able to sell it. Tim: So for me I'm always interested in looking at the quantitative side rather than just the high level argument. Now I think, whether a lot of that Ethereum volume is real, and arguably you can sell on some exchanges that are maybe more impactful, but the high level numbers seem to me that even if everyone sells Ethereum, and they're doing it in a not-panicking fashion, then it should not dent the price. Alex: Maybe we can move into the fundamentals of Ethereum, right? When people try to assess the value of Ethereum, one approach to take is to look at ... One approach they take is to look at the equation of exchange. So, essentially, this is the equation you might've seen: mv = pq, monetary base times the velocity is equal to the price of a good times the quantity of the goods. It sounds a bit technical, but another way you can think about that is essentially, you can reshuffle the equation and you can say, actually the monetary base, so the total market cap of Ethereum is equal to the total Ethereum economy, if you think of it as a country or an industry or something like that, divided by the velocity. Alex: So if we think about those two factors, like how big can the Ethereum economy potentially become, if we assume that the market is following this kind of logic -- I'm not saying they do, but we can assume that they do -- then the velocity, let's say it's at 10, for instance. This is similar to a US dollar roughly. That means that the total economy that the market price is orienteering economy is roughly 500 billion US dollars. If you're thinking of the market caps, maybe 50 billion. Alex: So is that realistic if we assume that velocity is correct. Half a trillion dollars economy for Ethereum. Tim: And the economy is defined, so it's 10 multiplied by 50, that's where we get the 500, but that 500 is like expenditure or ... ? Alex: So the insurance market, for instance, is many trillion dollars worldwide. So that's the large chunk of money that Ethereum can eat into, and where you can use smart contracts, for instance, to serve some of that market instead of the insurance companies. That's all I'm doing here. So 500 billion to me sounds like, actually, assuming that velocity could be a lot bigger than that, when you think about all the new industries, the new businesses that Ethereum could enable. Tim: Right. That's true. Alex: So I think I agree with Han in the sense that I think Ethereum could be huge. But I also think there is a risk factor here, that perhaps, we're not ... Maybe a lot of the market is not considering that much. There's a probably Ethereum just fails as real world project, that it's overtaken by a competitor, many of these other risk factors. I think it has huge potential, but there's also many risk factors that can make it fail. Han: Actually, no that's a great point Alex. I think there are substantial risk factors. In terms of another project kind of overtaking it, I'm very much on top of that, at least on the technology side, where any contender to the smart contract throne, I will be evaluating quite closely for a variety of reasons. But at the moment, there's nothing really on the horizon yet, and just the amount of developer community/developer resources available for Ethereum, to me at least, make it fairly confident that that is not going to be a failure point. But I definitely agree that that possibility absolutely exists, and anyone who has financial interests or otherwise, and Ethereum does need to pay attention to that. Han: But on the other point, where there's other points of failure, I think the one that I am most concerned about is the proposal to switch from proof of work to proof of stake, aka like the Casper protocol or whatever. And so, if that transition goes poorly, that could definitely have a very negative impact on Ethereum price, and that's kind of the big tipping point, where in my book, this is absolutely a risk factor. Tim: And then, Han, when you say that there's no obvious incumbent that can potentially takeover Ethereum, do you look at it and ... Sorry, this is probably my way of looking at it. Do you look at Ethereum where over time, as there's more ICOs launching on it, there's more people using the blockchain, it becomes a defensible mode, almost like how it's almost impossible for a social network to overtake Facebook. Is that a good analogy? Han: It's a similar analogy. I guess, obviously, the track record that Ethereum has with regards to smart contracts is unparalleled at the moment. But the other thing is really just developer mindshare. So in order for you to actually build on the Ethereum or other blockchain, it requires a bare minimum of developer tools. And the tool chain for Ethereum is the most mature out of everything else. And that being said, by the most mature, I mean it's still got a long ways to go. I mean, stuff is broken, to be perfectly honest, right? But that just means that everyone else is even further behind, which means that those communities are actually not able to ship anything fairly reasonable. Literally the only thing that I'm aware of that's remotely close is NEO, and NEO has its own interesting problems that we can discuss later. But that's where I have the confidence where, if you can't even build on top of the blockchain that you want to compete against Ethereum, in my perspective, that's probably not even a threat at the moment, right? Tim: So would it mean that one good thing to look at for a non-technical person to potentially spot someone being a legitimate competitor to Ethereum is that you start spotting like tool chains are being developed very rapidly for that block-chain. So I'm throwing it out there, could someone else fork Ethereum and have a tokenized incentive system to incentivize developers to improve the tool-chain. Han: I would say a fork absolutely not, because any sort of fork would require substantial community buy in why that fork is superior, otherwise there's no reason to switch. So yeah, forks I'm absolutely not concerned about. But yes, I would say that any other project, aka, maybe like a Cardano or Stellar who has the capability to really deliver on much developer experience, then that is absolutely a threat to Ethereum long term. Alex: I think this actually kind of brings us back to Vitalik's point, right? Which is essentially that we need to build, and there's a lead time in building. So for these other potential contenders to go up and challenge Ethereum, you're probably looking at months, if not years, of lead time before these projects can actually ship DApps and all these other things that you want to be built on top of their blockchain. Han: Yep. And one other thing that I thought of recently is, a lot of Bitcoin price action back in the day was a result of say, Bitcoin futures being released and all that kind of stuff. That hasn't happened for Ethereum yet. These additional financial products that allow for more liquidity, allow for more hedging to induce the institutional players to come in, and so that's where a lot of my bullishness comes in as well, where when there is a Ethereum futures market that I feel like that should only improve the price, basically. Alex: Right. I just want to go back to one point that you mentioned, Han, about proof-of-stake. Because I agree with you that's a risk factor, but it's also, there's a reason why they're doing it, why it has some very potential benefits for the technology. And actually, when you look at the equation of exchange again, staking could potentially lower the velocity, because you have more of the supply that's being staked. Han: Indeed. Alex: And therefore being taken out of circulation. So that's something that could actually increase the value, just from the fact that you're reducing the velocity. Han: Absolutely, yeah. And so if proof of stake is actually executed well, and that transition goes very smoothly, absolutely, I think price of Ethereum as a result will also increase. Not only do you get the reduced supply because of people staking, but also just in terms of the transaction volume that's possible in terms of the transaction confirmation times being reduced dramatically as a result, all of those should only improve the Ethereum experience. Alex: So I think one big downside for me, at least when I want to think about the valuation of Ethereum, at least in the short term, is that there are actually very few people using Ethereum. And when you think about the DApps that are built on top of Ethereum, if you just look at the statistics, the most popular DApps have perhaps a few thousand daily active users. If we assume that wallets are more or less the same as users. CryptoKitties was very popular, now it has only a couple of hundred users daily. So for me this is one area where I feel like I buy into the long term vision of Ethereum, but right now I think there's a strong argument you could make that it's overvalued right now, when you think about the actual usage of the blockchain. Han: I actually have a counter argument to that. I find it interesting that everyone focuses on DApps as the killer feature, killer app or whatever of Ethereum, but I actually truly do think that it's the ability to tokenize existing assets, or issue some sort of value to people that wasn't available before. That already is a killer feature in my book, and so I kind of think that, as a result, it justifies it obviously, or Tim has a great point where I'm able to put a number on that, but I do feel like the emphasis on DApps is maybe a little unwarranted. Han: But that being said, with the advent of proof of stake, perhaps by reducing the transaction confirmation times, DApps will be more plausible in the future. Tim: So Han, I guess you know for me, Bitcoin is very simple to understand, or easier to understand more when I transfer one Bitcoin from my wallet to another, there is a deduction in Bitcoin price. There's a transaction fee charged in Bitcoin, right? Han: Yes. There's a, yes, there is a deduction of Bitcoin that's part of the transaction fee that you pay to the miners for the privilege of recording your transaction on the blockchain. Tim: Sure. So let's say, I mean Bitcoin is obviously way too solvent, but let's say it really took off, everyone uses Bitcoin to transfer, there's gonna be a certain amount of Bitcoin that's going to get ... Let's say the Bitcoin transaction fee is not 1% for the simple math, keep it as 10%, so if I needed to transfer $100 in Bitcoin, then I will need $101. So there's effectively, if I was doing a lot of transfers a day, that company doing a lot of transfers needs to buy a bunch of Bitcoin in advance and not use it. Similar to how BNB right now, the fact that people are holding it for commissions, there's a natural demand for that, because people know they're actually going to be spending it. Tim: So I'm trying to quantify in Ethereum's case if you're doing say, 10,000 transfers a day, how much Ethereum do I actually need to pay for those transfer fees. Han: I think there are confounding factors to the answer of your question where it doesn't make sense to do the analysis in the way that you're proposing. And this is why: number one, the transaction confirmation time can differ. So you can choose to pay less, and have your confirmation take much longer. So you can theoretically pay very little, but your transaction can just take a long time to confirm. So it really depends on what you prefer in terms of the confirmation time, as part of the function of cost shown. So as a result then, it may not be an accurate representation of the amount of usage that's being gained in the blockchain if that makes any sense. Han: And then the other part is, it really depends on how many miners there are as well. So the more miners there are, the less you have to pay for a faster confirmation. So with those two variables in play, it's hard to get that valuation that you're hoping for from that metric that you're proposing. Tim: But is it also correct that I understand there's confluence of factors which drive the cost, because the transfer cost is a dynamic variable. However, is it accurate to assume that if transactions really take off, people are gonna need to hold ... Like for instance, right now, people need to hold a small amount of Ethereum whether they like it or not if they're transferring ERC20 tokens. I know anecdotally, it's a very small amount, but I'm trying to think, like I understand we can't pinpoint exactly what that amount is, but can we do a high level analysis where, if Ethereum transactions, because people fundamentally to me, people need to pre-buy Ethereum in order to facilitate transfers on the Ethereum blockchain. Alex: I think, I mean what you're talking about here is the supply and demand science. And I think with Ethereum you can think of two services or goods. One is Ether in itself, right? The demand for that, for instance, if you're investing in ICOs that increases the demand for Ether in general. The other is the supply and demand of just executing smart contracts in general. And if, let's say, you have a lot of these DApps, or you have other services that are built on top of the Ethereum blockchain, it's natural to assume that that will increase the demand for executing smart contracts. Right? And in order to serve that, yeah, you're going to have to stock up on Ether to pay for smart contract executions, because that's how you pay for it. So there is a very natural, I think, connect to the supply and demand sides. Alex: And that, just a side note here, because many people talk negatively about Bitcoin and the costs of transferring something on the Bitcoin blockchain, but actually when you think about it, that's kind of a success metric as well. Because it means that it's actually serving ... People are willing to pay for that service, and it's really filled up its capacity. Bitcoin is a failure because it's so expensive to actually do transactions on it, but you can look at it as, from the totally opposite view, I think, and say that this actually shows that there's a lot of demand for this kind of service out there. And I think it's similar in the Ethereum case. Ethereum from a technical perspective is a bit different because it has variable block sizes, not exactly in the same way as Bitcoin. But of course, the more demand there is for smart contract executions, the more demand there will be for Ether. Han: No, that's an excellent point, Tim. So actually, yes. You're right in that there is a metric that we can measure to see what the increase in usage is, and that's really the amount of GAS that's spent. But in terms of how the GAS gets mapped onto the Ethereum price for each operation that the GAS represents, that's the part that I'm not entirely sure is an accurate representation. But yeah, if we look at just GAS usage in general, that gives us at least a trend of, yeah, the usage of the Ethereum blockchain in general, if that makes any sense. Tim: And Alex, I think you raised an interesting point when you mentioned people complain about transaction fees on Bitcoin. But I have a slightly different view on that where, I think view and vision of Bitcoin originally was it to be a replacement kind where you could transact forward to buy coffee or something like that. So the cost does become prohibitive on that aspect. So I take the point that if people are willing to pay the fee, it means there's demand for that. However, the demand I would say, largely in last year's market is driven by speculation, not usage. So I look at it slightly differently as, yes, people are willing to pay that price per transfer, but as they have the view that Bitcoin's gonna go up, not willing to pay. But it's different, if someone was willing to pay that transfer fee to buy a cup of coffee, then it's different, because that really shows that people want the convenience, and pay that fee for the convenience to get that cup of coffee, versus I'm paying a dollar fee because I think Bitcoin's gonna double in price. Alex: Yeah, yeah, that is a difference. And I think this boils down to, what is the purpose of Bitcoin? What is the purpose of these blockchains. You can have many different views on that. We don't have to enter the Bitcoin versus Bitcoin cash, and all that stuff. Tim: That's another podcast, right? Alex: That's another podcast. But I think you can think of blockchains as open marketplaces, and the participants in these marketplaces decide what gets executed on them. And so maybe, from a marketplace perspective, buying a cup of coffee doesn't really make sense when you have such limited supply of transactions that can be made. Nate: Yeah. Maybe this is a good spot to wrap up. Been a very interesting conversation. We have a lot of different views from different backgrounds. Maybe all of you can go through and just summarize your view in a few sentences. Do you think Ethereum is overvalued or undervalued, and why? Han: Buy now, buy now, buy now. Alex: It's undervalued guys, pick it up. Tim: I think I always defer to Han for technical opinions, always defer to Alex on the data side and the analysis side. I mean, for me, I strongly think that from a profit point of view of whether Ethereum prices are gonna be higher in a year, I say with high confidence that it is. Because, I mean, just from a trading point of view, it's trading at the low end of the range. They're still at the start of a multi-year, all cycle. Ethereum's the second largest market cap coin. Institutional investors who come in are only gonna buy Bitcoin and Ethereum. In size everything else will double in, so all those factors to me, indicate that Ethereum is a good ... I hesitate to say undervalued or overvalued, because value is a very subjective thing. I think the price is low, and it will be higher. I think that's a better way I would put it. Alex: I probably say that I think Ethereum might be slightly overvalued in the short term, because of the usage metrics, but I do think that it's undervalued in the long term. Nate: Great. Thanks for the awesome discussion guys. We'll see you guys next time. Nate: Thanks for listening everyone. We hope you got something out of this conversation looking at the valuation of Ethereum from the point of view of a hedge fund trader, a technologist, and a data scientist. Thanks to Tim, Han and Alex for taking time out of their busy day to share their thoughts. And we'll catch you guys next time on the CoinFi podcast. Nate: Thanks for listening to the CoinFi podcast. If you enjoyed this discussion and want to hear more, we'd really appreciate it if you took a moment to leave us a review on iTunes. That helps others find us, and let's us continue to record more episodes for you guys. If you don't think the podcast is worth a five star review, we'd love to know why so we can improve for next time. Please hop on over CoinFi.com and leave us a comment. We love to hear how we can do better next time. Nate: If you're still listening at this point, you might be wondering what exactly CoinFi is. CoinFi is a market intelligence platform for crypto investors, powered by the CoinFi token, which is available for trading on Kucoin.com and Gate.io. Find out more about the CoinFi platform and the COFI token, go to CoinFi.com/about. Also, keep an eye out for the launch of CoinFi News. CoinFi News give crypto investors like you an informational advantage. Be the first to know the news that moves the markets, including when a token gets listed on a new exchange. To get early access to CoinFi News, go to CoinFi.com/news-beta to sign up as an exclusive beta tester when the product launches later this summer. We're only accepting 500 beta users, so sign up now to reserve your spot. Nate: That's all for this episode. See you next time. This information was found by us on January 06, 2019 10:41 PM. Have a look at www.coinfi.com for more.
The Crypto King's Ultimate Bitcoin Comeback, Plus Ripple and XRP, Tron, EOS, Ethereum, IOTA, Cardano, Nano: Crypto News Alert | The Daily Hodl
From Bitcoin?s long-term outlook to new progress at Tron and outreach for Ripple and XRP, here?s a look at some of the stories breaking in the world of crypto. The head of digital assets at one of the world?s largest investment firms is crafting the perfect argument to counter Bitcoin and crypto naysayers this Thanksgiving. Bart Smith of Susquehanna International ? also known as the Crypto King on CNBC ? explains why he?s still bullish on BTC. ?Satoshi Nakamoto designed this algorithm so that the last Bitcoin would be mined in 2140 for a reason. This is supposed to be a long game, right? So there?s a lot of talk today about the Thanksgiving table a year ago. And yes, Bitcoin was at $8,000. But the Thanksgiving before that it was at $750. And the Thanksgiving before that, it was at $350. And in 2010 someone bought two pizzas for 10,000 Bitcoin that today would be worth over $40 million. This information was retrieved by us on January 06, 2019 10:36 PM. See dailyhodl.com for additional posts.
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