Topic: ETH price soaring. Are you going to move some BTC into ETH? - page 82. (Read 198829 times)

But it will take some time for the miners to adjust the gas price they will accept. So there could still be some risk the trade will not go through.

 

As someone above already posted. All the info is in this link.


https://www.reddit.com/r/ethereum/comments/499a7w/gas_prices_are_already_kinda_down_to_20_shannon/

If I am a miner, where do I set the gas price in the geth software? If I mine a block, can I reject the contract with low gas?

Miners set the gas price that they will pay. So they can set it to whatever they like. It will adjust to reflect to the real world costs of running the mining equipment (so if ETH goes up, the gas price will decrease).

Laugh mate laugh...

bankster pump altcoin ... much surprise.

That is quite good. So the Ethereum price does not affect the transaction cost at all if there is market for the smart contracts.

Yes, transaction cost is the product of [gas amount * gasPrice], with gasPrice being measured in ETH. Miners can accept lower gasPrice, so in the end, it doesn't matter what is the price of ETH.

Vitalik explains here:
https://www.reddit.com/r/ethereum/comments/499a7w/gas_prices_are_already_kinda_down_to_20_shannon/

I don't know much but I think the price adjusts of course, it did with Homestead. The price is negotiated with the miners too. It's logical because having "only" 77 million (if you buy 77 ETH you will join the million club hehe) and being highly divisible kinda gives away that it was meant to have a "high" price. How high we don't know, but $10-15 is extremely cheap if this gets adopted by companies, banks, institutions worldwide...that's why there's so many speculation around it.

If the Ethereum rises a lot in value to say $100 each, can we use less Ethereum to fuel the transaction, or the gas required in Ethereum is fixed?

Eth lab is also supported by a Chinese company. It will spend $500,000 on projects related to Ethereum. So the financial backing is good.

I get where your coming from. But it would have to be astounding to be able to top the ethereum dev team. They have over 70 active devs and the brain behind this sort of tech aka Vitalik. I honestly do not see Ethereum being brushed under the carpet.

Well it isn't the same with Ethereum IMO actually.

The Ethereum token is not a bearer token like Bitcoin. There isn't the same advantage in being first adopted because it isn't a monetary asset, it's a technological one. This is a very profound difference that I don't think most people appreciate. If companies build Daaps and want to move them to another blockchain they can - and the value will travel with them. It's a whole lot different from the type of network effect that an inherent monetary medium gains from early adoption.

Bitcoin was reproduced many times but none of the forks ever surpassed bitcoin.

Its the same with Ethereum. There will be copies no doubt,  but Ethereum is the godfather of its own Tech.

I don't disagree, but it's also amazingly reproducible, just wait and see. There's always network effect and hashpower but that's much easier to reproduce (and less important) with a technological asset than with a monetary one. That was all I was pointing out.

Of all the "alt-coins" that have appeared since bitcoin, none of them accrued value based on technology. They were mostly way more advanced technologically than bitcoin as well in all kinds of ways. All I'm saying is that this aspect of the valuation is way under-discussed and under appreciated. I think most people investing just think it's another crypto thats doing a monetary job like bitcoin when in fact it isn't and the value will come from a different source.

The question is, what is that source and how do you value it objectively ?

 I was just about to point this out but you beat me to it,  i have to laugh at all these posts from people who see themselfs as experts on Ethereum but still do not actually understand the Ethereum core and how it was designed.

Fomo happens all coins,  but the underlying technology in Ethereum is amazing, I remember reading the whitepaper before Ethereum was even built and said to myself theres no way they can pull it off,  fast forward a few years and here we are. The development is consistant and everytime Vitalik delivers what he proposes. It is for this fact that I bought a small portion of Ethereum and continue to mine it,  but make no misteak its a different beast to bitcoin and for different use.

GAS is just a way to represent the cost of transaction independent of ETH price right? If ETH price increases too much, to let's say $1,000, it's possible to reduce gasPrice, so I don't see this scenario you describe of the Ethereum network becoming uncompetitive because of ETH price.

Excellent post mate

For your info: Homestead release will lower gas price by ~60% so whatever the price is, it won't kill some project.

How to lower gasprice on your miner to accept even cheaper transactions: https://www.reddit.com/r/ethereum/comments/499a7w/gas_prices_are_already_kinda_down_to_20_shannon/

I don't know what basis you use for your valuation - and you could be right or could be wrong - but it might be time to start basing valuations of Ether tokens on sober calculation rather than drunken hysteria.

For a start, you can do quite a lot in terms of open source code development for a billion dollars, including reproducing the Ethereum service paradigm probably several times over.

Secondly, what is it we’re investing in actually ?

Ethereum is not like Bitcoin whose tokens carry a monetary premium due to their “bearer property". i.e. the bitcoin IS the asset. On the other hand, in a smart contract network, the assets are only recorded in the blockchain. They are not the actual tokens themselves. The tokens are simply a medium for charging transaction fees and for paying miners to secure the network. (See Simon Dixon's commentary for more info).



Right now, what people are investing in looks like this.


But later it will start to look like this…..



What happens when people start shifting their capital from the token layer to the asset layer ? (For a preview, see the history of the NxT valuation once assets started appearing on that network). Or even shifting their assets off your blockchain to another, less expensive one ?

Thirdly, what happens when the price of GAS gets too expensive and the network becomes uncompetitive ? One of 2 things:

a) other smart contract networks start appearing which are more competitively priced and featured (since they have the advantage of watching the mistakes in the first one)

b) the Ethereum network simply issues more GAS tokens to lower the transaction fee to a competitive level (that's my assumption but better confirm this as I'm not quite sure about how this mechanism works)

So I don’t really agree with you that it will reach $20 per token because it’s probably a good 10 to 100 times past its book value already. Also, the capital it would take would be enormous from here and people WILL start to look at the genuine commercial case for investing in tokens rather than assets, at which point some will get a bit of a fright.

The power of FOMO is strong with this one, (full disclosure - I left some skin in the game for this reason) but people should be clear about what they’re investing in - other people’s hysteria, not an advanced technology with a book value that’s genuinely manifesting in the market. Be advised that such FOMO can disappear as fast as the froth on a cappucino and everyone’s waiting nervously for that moment, with fingers on mouses at the ready.

b.t.w. I’m not posting this to malign the product. I think it’s a promising and exciting technology. Also, Vitalik is a visionary guy who I like listening to and to his great credit has stayed away from hyping the token price with complete professionalism. But I think people buying at this price should be aware of what they’re purchasing and it might be irresponsible to be encouraging folks to do so any longer now.

Wherever the top is, some investors are about to loose a very large amount of money - or at least it looks like that to me when I watch the size of some of those trades going in at all-time-highs. It just depends on who's at the front of the queue at the wrong moment.