Topic: Ethereum is in an artificial bubble - page 2. (Read 4491 times)

Quote from: Naughtid on April 21, 2016, 03:03:41 PM

I don't understand why so much money is flowing into Ethereum. Given that Ethereum is inflationary, and therefore has no fixed supply - it seems like a terrible long term investment. Can someone please explain why so much money is getting pumped into it right now?

Ethereum is going Proof-of-Stake within, oh, maybe 6 months in the Serenity release using the Casper PoS algo...
So the Ethereum Global Supercomputer (EVN) that serves blockchain features via Turing-complete custom functions...
Will have a fixed amount of "gas" to pay for cycles (ETH)... which will circulate endlessly throughout the ecosystem.

https://blog.ethereum.org/2015/12/28/understanding-serenity-part-2-casper/

It's as if there was a fixed amount of energy on earth in the form of "energy tokens"...
And the exponential increase in human energy usage MUST translate into exponential increase in the value of "energy tokens".

Right now ETH is doing > 30,000 tx/day with no large commercials apps yet released...
Exponential growth in both tx/day... and the price of Ether is a good bet due to the PoS rollout.

https://stats.etherchain.org/dashboard/db/transactions?theme=light

Bitcoin is down 50% since late-2013 and developing at a truly glacial pace...
So if you wanna speculate on a crypto-ecosystem that could blow by Bitcoin by orders of magnitude in 12-24 months... don't expect "cheap".

BombayChicken

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Quote from: Golftech on April 19, 2016, 09:04:54 AM

Quote from: Fademigo on April 14, 2016, 05:47:17 AM

Quote from: The Sceptical Chymist on March 05, 2016, 08:48:53 PM

Even knowing it's a bubble you can still make money, and the thing is that you don't know how long momentum is going to be in the up direction. Could be for a while.

Yes, telling people invest in this risky project so IPO buyers can make a fortune. Deceiving people should be made illegal.

I also made small profit. I mined the Ethereum when the price was about $0.8-$1.0. I sold all my coins at $1.4.

Your profit is too small. If you hold until today, you can even make bigger profit. But who knows future.

I am mining the Ethereum at the moment. I will hold most of my coins and sell when the price is $20.

Well you could be in for a long waiting period Wink

. Since the price is on it's return i think it will stabilize somewhere around the 2/3 dollar region.
From where another pump will happen a few months later.

Naughtid

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Quote from: Golftech on April 19, 2016, 09:04:54 AM

Quote from: Fademigo on April 14, 2016, 05:47:17 AM

Quote from: The Sceptical Chymist on March 05, 2016, 08:48:53 PM

Even knowing it's a bubble you can still make money, and the thing is that you don't know how long momentum is going to be in the up direction. Could be for a while.

Yes, telling people invest in this risky project so IPO buyers can make a fortune. Deceiving people should be made illegal.

I also made small profit. I mined the Ethereum when the price was about $0.8-$1.0. I sold all my coins at $1.4.

Your profit is too small. If you hold until today, you can even make bigger profit. But who knows future.

I am mining the Ethereum at the moment. I will hold most of my coins and sell when the price is $20.

Golftech

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Quote from: Fademigo on April 14, 2016, 05:47:17 AM

Quote from: The Sceptical Chymist on March 05, 2016, 08:48:53 PM

Even knowing it's a bubble you can still make money, and the thing is that you don't know how long momentum is going to be in the up direction. Could be for a while.

Yes, telling people invest in this risky project so IPO buyers can make a fortune. Deceiving people should be made illegal.

I also made small profit. I mined the Ethereum when the price was about $0.8-$1.0. I sold all my coins at $1.4.

Your profit is too small. If you hold until today, you can even make bigger profit. But who knows future.

Fademigo

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Quote from: The Sceptical Chymist on March 05, 2016, 08:48:53 PM

Even knowing it's a bubble you can still make money, and the thing is that you don't know how long momentum is going to be in the up direction. Could be for a while.

Yes, telling people invest in this risky project so IPO buyers can make a fortune. Deceiving people should be made illegal.

I also made small profit. I mined the Ethereum when the price was about $0.8-$1.0. I sold all my coins at $1.4.

Fademigo

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Quote from: mtnsaa on April 03, 2016, 10:03:22 AM

Quote from: TPTB_need_war on April 08, 2016, 03:44:26 AM

I don't understand why so much money is flowing into Ethereum. Given that Ethereum is inflationary, and therefore has no fixed supply - it seems like a terrible long term investment. Can someone please explain why so much money is getting pumped into it right now?

Quit your weak FUD, we all know Ethereum has a limit of 100 million coins, there's only inflation for the next couple of years and it's very low and then it switch to PoS.

We do not know the upper limit yet. It will decided early next year when the PoS phase arrives.

TPTB_need_war

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On the non-logarithm scaled chart, Ethereum broke down through the February pump support, and the next support is from the January support line which currently extends to about 0.0164 BTC ≈ $7:

https://dc-charts.com/chart_eth.php?ex=16&cu=0&tz=6&ar=1

On the logarithm scaled chart, Ethereum broken down through all support lines and there is no support.

mtnsaa

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I don't understand why so much money is flowing into Ethereum. Given that Ethereum is inflationary, and therefore has no fixed supply - it seems like a terrible long term investment. Can someone please explain why so much money is getting pumped into it right now?

Quit your weak FUD, we all know Ethereum has a limit of 100 million coins, there's only inflation for the next couple of years and it's very low and then it switch to PoS.

Golftech

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Quote from: Za1n on March 06, 2016, 07:30:53 PM

I don't understand why so much money is flowing into Ethereum. Given that Ethereum is inflationary, and therefore has no fixed supply - it seems like a terrible long term investment. Can someone please explain why so much money is getting pumped into it right now?

For the PoS coins, if the inflation is less than 1% a year, or the interest is less than 1% a year, it is fine with me.

pliv84

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I don't understand why so much money is flowing into Ethereum. Given that Ethereum is inflationary, and therefore has no fixed supply - it seems like a terrible long term investment. Can someone please explain why so much money is getting pumped into it right now?

mrcashking

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Quote from: chesthing on March 06, 2016, 10:39:05 PM

Yes, everyone knoves that it's a bubble. What I am saying is that it's totally artificial. I realised it looking at coinmarketcap charts.
Almost all of the trading volume goes trought Poloniex and Kraken. On poloniex there's almost ONLY eth/btc volume, no eth/usd volume at all. Kraken actually has eth/usd volume but much smaller than eth/btc.
For me it means than NO FIAT MONEY is flowing in ethereum market cap, it's only that a few btc whales are shorting bitcoin to make money on ethereum pump and then to buy more btc with the profit.
AAAnd, one more time noobs will be fooled.

This is probably due to the fact that Poloniex does not trade in fiat currencies, only in crytpocurrencies. They offer USDT (Tether) which is not fiat, and if you have to exchange to tether to trade most people would probably just as soon exchange into BTC to begin with.

While Kraken does offer trading in fiat, keep in mind that there are withdrawal limits in place for how much fiat you can withdrawal daily based upon your level of verification. There are no limits on withdrawing cryptocurrencies once you are verified to Tier 2. So for people who trade in large amounts (where most of the volume comes from), there are benefits for keeping the funds in crypto.

Also they only allow it for a handful of countries and i don't think most of the people are really impressed with the verifications and all that stuff.

ETH pumped, and soon dumped. Of course it's artificial, is anyone naive enough to think it sat at 200k sats for 3 months then the buying public decided it was worth 15x that in a few days?

There could be a significant amount of volume being traded by Traders.Not all of the volume is bought by people? Tongue

willope

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Quote from: willope on March 05, 2016, 10:46:57 AM

Quote from: stoat on March 05, 2016, 07:24:23 AM

Lol sour grapes.

Thanks OP posts like these are a massive bullish indicator for the ETH price. And make very pleasurable reading.

It's the same feeling i get if i read that someone i hate got run over by a bus or my favourite team won the FA cup.

Keep em coming

It's a pleasure to be hated by you, a hater.
Anyway, I am very interesed in ethereum, but this is a bubble. So... Come here in a month and read only my last sentence:

I TOLD YOU SO Grin

Only to remember:

hv_

legendary

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Clean Code and Scale

Hat - Bubble seen

https://www.tradingview.com/chart/ETHUSD/UcCzL0Mb-ETHUSD-BUBBLE-CYCLE/

edmundduke

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Yes, everyone knoves that it's a bubble. What I am saying is that it's totally artificial. I realised it looking at coinmarketcap charts.
Almost all of the trading volume goes trought Poloniex and Kraken. On poloniex there's almost ONLY eth/btc volume, no eth/usd volume at all. Kraken actually has eth/usd volume but much smaller than eth/btc.
For me it means than NO FIAT MONEY is flowing in ethereum market cap, it's only that a few btc whales are shorting bitcoin to make money on ethereum pump and then to buy more btc with the profit.
AAAnd, one more time noobs will be fooled.

The real question is does anyone actually care if it is a bubble or not ? Most of the volume is from whales true but trades are contributing a whole lot also, and traders are in there with only one goal, to make profit. And have to say ETH is excellent for trading right now, a lot of easy profit from trades. The only ones who will get hurt are the fanboys, but hey, someone has to take a loss also because everyone cant be in profit.
Most altcoins are just bubbles anyway, its the knowledge of how to trade them that counts.

chesthing

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ETH pumped, and soon dumped. Of course it's artificial, is anyone naive enough to think it sat at 200k sats for 3 months then the buying public decided it was worth 15x that in a few days?

Za1n

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Quote from: btcbug on March 05, 2016, 06:30:44 PM

Yes, everyone knoves that it's a bubble. What I am saying is that it's totally artificial. I realised it looking at coinmarketcap charts.
Almost all of the trading volume goes trought Poloniex and Kraken. On poloniex there's almost ONLY eth/btc volume, no eth/usd volume at all. Kraken actually has eth/usd volume but much smaller than eth/btc.
For me it means than NO FIAT MONEY is flowing in ethereum market cap, it's only that a few btc whales are shorting bitcoin to make money on ethereum pump and then to buy more btc with the profit.
AAAnd, one more time noobs will be fooled.

This is probably due to the fact that Poloniex does not trade in fiat currencies, only in crytpocurrencies. They offer USDT (Tether) which is not fiat, and if you have to exchange to tether to trade most people would probably just as soon exchange into BTC to begin with.

While Kraken does offer trading in fiat, keep in mind that there are withdrawal limits in place for how much fiat you can withdrawal daily based upon your level of verification. There are no limits on withdrawing cryptocurrencies once you are verified to Tier 2. So for people who trade in large amounts (where most of the volume comes from), there are benefits for keeping the funds in crypto.

Nxtblg

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Agree with OP.

I mentioned elsewhere that if you look at Poloniex volume for the top 10 alts, they've all shot up around 10 - 40 times in volume in the past month or two. To me this means that there is simply massive speculation going on across the board. Regardless what anyone thinks of ETH fundamentals and long term, it's clear that right now it's way too high. It's due for a huge correction any time imo.

Maybe - but to my eyes, it looks like we're early in a new bull market. As the old adage says, "Markets climb a wall of worry and slide down a river of hope."

I survived the river-of hope phase of last year and '14, but barely. Wink

Now, I'm seeing "wall of worry."

fortunecrypto

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Quote from: owm123 on March 05, 2016, 07:24:18 AM