Very suitable analogy imo Lamborghini was established in 1963 for the self interests of the founder so he could make a car for himself rather than buying a Ferrari, it then went bankrupt in 1978, Chrysler took over but couldn't make it work either and it was sold off to Malaysian investment group Mycom Setdco and Indonesian group V'Power Corporation in 1994, also failing to make a profit out of it was sold it to Volkswagen in 1998. Now with dismal sales figures, a global slowdown and engine recalls Volkswagen is trying to find a way to dump this lemon. Chrysler's recent sales of Ferrari shares are showing that Volkswagen is likely going to take a big hit in order to move this one on. Meanwhile Ford was established in 1903 and is still going strong today.
Ethereum is good stuff, guys. We'll have to see if it will survive the attack of the clones, including those prepared by IBM and other powerhouses.
What do you guys think of the Ethereum based reserve bank Maker DAO? https://docs.google.com/document/d/1FAEbR8RCC0JgFnSgmwr8BAYNMSMbsnLPg4ZD5L7l8RY/edit
Looks quite complex at first glance. Why are you interested in that stuff? If you only want to use a blockchain to exchange tokens pegged to a fiat currency, take a look at Tether.
I'm interested in being a market maker for Augur and I think betting in USD makes more sense than betting in Ether. I dont think Tether can be used in Ethereum smart contracts. Maybe one bitcoin has smart contracts or if bitcoin side chains to Ethereum, can Tether transactions be SPV verified?
Tether is just a "colored" Bitcoin transaction, i.e. a transaction with special meaning for those who understand it. The special meaning is: a certain amount of USD, EUR, or JPY with the actual currency backing the transaction in 1:1 fashion (no fractional reserve) Those who understand it are: Tether wallet and some exchanges (like Poloniex and Bitfinex) It's basically used to convert crypto currencies into something equivalent to fiat currencies without going through the banking system thus avoiding all the KYC crap, something you might want to do for example if you think that Ether will go down soon and you want to park the equivalent value in let's say USD to buy back later at lower levels. EDIT: I checked the Augur website and they say that they want to "create a global market by employing cryptocurrencies including bitcoin, ether, and stable cryptocurrencies." This means that Ether will not be the only way to bet, but also Bitcoin and other "stable"(?) crypto. The only way to allow users to bet in USD without being exposed to fluctuations in USD/crypto exchange rates is to use a pegged crypto like Tether. If there is enough demand for bets in USD I'm pretty sure that they will also implement compatibility with a pegged crypto. Edit 2: The eDollar in the document you linked is indeed a crypto pegged to the dollar, but only at the beginning. And the mechanism to keep it pegged to the dollar seems to be inflation/deflation of the underlying crypto makercoin, backed by various assets in a slightly obscure way (to me, at least). Not sure what they want to achieve with that complex arrangement, but surely that thing is not made to just have a simple peg to a fiat currency because this can be done in a much more simple way like Tether does: just back the issuance of 1 Thether with 1 real USD.
I've never seen a personal Tether wallet, but I don't see why not. They use normal Bitcoin addresses starting with 3 (pay to script hash) so as long as the wallet understands the underlying script there should be no problem.
I think the main problem is that since bitcoin nodes dont verify coloured coin metadata you need the entire history of the transaction going back to the genesis of the coloured coin vs trusting that the output is verified when its bitcoin because it is always verified and secured with each confirmation. This becomes a problem for when bitcoin get upgraded with segregated witness + script versioning to allow for the full range of script primitives because you dont want to have to include all this data (the equivalent of doing a BTCRelay on data that is right there but because of the way its tacked on not easy to integrate) I guess any colored coin provider at that point should give up on colored coins in favor of coloured subcurrencies implemented directly in the scripting language. Since you are trusting a 3rd party that can steal the assets anyway it should be trivial for them to transfer ownership from the colored coin to the colored subcurrency so it can be used in smart contracts. Anyway I'm not against colored coins, they have their place and I dont mean to be down on them. I do think they have a lot of counterparty risk that a CFD based product does not but then a CFD based product has its own catastrophic failure modes. I guess its up to what you think is more likely to happen: private asset banks getting raided or turning corrupt or a systemic devaluation of the specific backing assets of a CFD based currency beyond whats manageable by selling down positions automatically.
My bad, I said colored coin but after further reading a Pay 2 Script Hash transaction is not a colored coin since it does not rely on metadata within the transaction. Nodes will fully verify that the output is spent on a script hash without the need to understand the script itself. There is really no difference between p2 public key hash and p2 script hash for nodes so SPV should work normally. Regarding the counterparty problem observation, yeah, both scenarios look bad and equally likely to me. That's why Bitcoin has been invented, to remove a lot of these trust problems. At the end, that's probably why it makes more sense to do Augur bets in a pure crypto currency rather than in something pegged to USD.
It reached $9.30 last night and seems to be getting lots of good mainstream press. Apparently Microsoft are interested in using some of its features as well as Samsung. They're two very big names to have endorsing your product. I also read somewhere else (unverified) that 80% of the new money coming into ether is via people directly converting their Bitcoins (which has been dropping at about the same time Ether started its bigger gains) Question is do you jump ship and take tidy profits now or could this be the new coin to take on BC? It now has a higher market cap than ripple and LC combined. I think it's just starting to gather momentum and could easily bust out to much bigger gains. If it's a P&D then it's going to be one hell of a dump.
This is not a P&D , this is a well crafted platform by some of the best minds in the Crypto world. Do some research on ETH and you will find out why big companies are looking into it. http://forum.ethereum.org/index.php?p=/
How's that very, very slow pump and dump theory going for you now Tozak and others ? Disclosure on my part I don't own a single ether.... Never have.
I cant get into ETH. played around with it early but now Just waiting for the all mighty dump, They can create more, there is no limit to them. and it's only a blockchain token not shares in Etherium itself., I dont see what the actual value of the currency is. Though the price is wild!!!
Totally agree, I think it may take some time before true price discovery of them, there is a lot of hype to wear down that may take months (I'm personally staying clear of them until the end of this year to see where the chips fall). They may go higher from here for a while but I think give it time for the hype to pass and they will normalize to fair value. Like many other coins people seem to think by bidding up the price they are buying into something. What ever revolutionary idea is incorporated into a new coin a few things are almost always the same (#1) Any special functions of the coin is independent of the price (#2) anyone can clone or improve on a new idea (#3) the same people tent benefit from hyping a coin up to take their profit before letting it crash
i think ethereum is different. its the first time the block chain technology has been used in this way. looking at the support from microsoft, the big banks and bigger business i think theres no stopping the price hitting $100usd. as for fair value, price discovery phase is happening at the moment. i expect start ups to also drive the price like slock.it where buying into their crowdsale will be done by crypto.
