Author

Topic: Ethereum post-PoS scenario (Read 367 times)

legendary
Activity: 2366
Merit: 1624
Do not die for Putin
October 29, 2017, 11:01:19 AM
#7
Firstly, you will need to own 2000 eth to be a node and to be able to generate a profit once PoS kicks in...

That requirement was set when eth was $7 per coin...will most likely be under 100 coins if price remains where it is.
Are you sure it is related to price?

It's not related to price, its related to the scalability of the Ethereum platform prior to sharding being implemented.  They just wont be able to support a huge number of stakers who are staking small amounts of ETH.

I believe the minimum threshold is likely to be in the ~1000-1500 ETH range initially.  There will be 'staking pools' to enable participation by those who hold less than the minimum threshold (RocketPool as a leading example).

At the end of the day there will be options to syndicate, it is particularly easy with smart contracts. I would not worry too much about the minimun requirement, as it would be agains the value of the currency to loose the small currency owners.
kjs
full member
Activity: 188
Merit: 105
October 26, 2017, 05:29:48 PM
#6
Firstly, you will need to own 2000 eth to be a node and to be able to generate a profit once PoS kicks in...

That requirement was set when eth was $7 per coin...will most likely be under 100 coins if price remains where it is.
Are you sure it is related to price?

It's not related to price, its related to the scalability of the Ethereum platform prior to sharding being implemented.  They just wont be able to support a huge number of stakers who are staking small amounts of ETH.

I believe the minimum threshold is likely to be in the ~1000-1500 ETH range initially.  There will be 'staking pools' to enable participation by those who hold less than the minimum threshold (RocketPool as a leading example).
newbie
Activity: 32
Merit: 0
October 26, 2017, 01:06:10 PM
#5
Firstly, you will need to own 2000 eth to be a node and to be able to generate a profit once PoS kicks in...
So in generally we can earn etherum by Proof of Stakes system ? Not Proof of Work?
full member
Activity: 312
Merit: 104
October 26, 2017, 12:51:09 PM
#4
Firstly, you will need to own 2000 eth to be a node and to be able to generate a profit once PoS kicks in...

That requirement was set when eth was $7 per coin...will most likely be under 100 coins if price remains where it is.
Are you sure it is related to price?
legendary
Activity: 2174
Merit: 1401
October 26, 2017, 11:04:13 AM
#3
Firstly, you will need to own 2000 eth to be a node and to be able to generate a profit once PoS kicks in...

That requirement was set when eth was $7 per coin...will most likely be under 100 coins if price remains where it is.
full member
Activity: 312
Merit: 104
October 26, 2017, 10:09:00 AM
#2
Firstly, you will need to own 2000 eth to be a node and to be able to generate a profit once PoS kicks in...
legendary
Activity: 2366
Merit: 1624
Do not die for Putin
October 25, 2017, 06:32:23 PM
#1
My two cents. Ethereum price is driven by a market like any other: offer and demand meet and form a price. In this case, it is a market with very small obstacles to the entry of producers (miners).

PoW Era

The demand for ethereum is driven, unfortunately, by speculation and news but not (at the moment) by real use as store of value, commerce vehicle /payment method nor per the utility to execute smart contracts. As anything speculative, DEMAND WILL MOVE BY NEWS (adoption, bans, projects, posibility to pay in stores, competing alternatives, expectations of increase in value...)

The offer of Ethereum is fixed at 3 EHT per block, that is whatever per minute.


As far as miners are concerned, they go in or out the market if the price makes operations profitable, but the supply does not change.

So price is just driven by DEMAND, mostly especulative.


PoS Era

We do not know yet if the supply is going to be fixed o variable (at least I don´t). Let us say it remains fixed to avoid inflation. Then the price will still be driven by demand, just as it was before.

However, from the miner (now staker) perspective, things change a lot because their production cost is a cost of opportunity (for those who don´t know, that is the cost of not using the money for alternative investments such as shares of companies or bonds) or if you borrow to buy ethereum the cost of your capital (interest rates).

The price of ethereum will be given by the ability of the network to produce profits for the stakers (interests) and that will be related to the real use of the network and ether as a coin for commerce and store of value.

As a share, prospective investors will compare risk and profit and that will determine the price. Also, keep in mind that it will have to compete with other crypto assets.


WILL THE PRICE RISE LONG TERM??? It will depend on the real applications in the long term, particularly if it goes mainstream or a few "unicorns" are built on the ETH network generating many transactions. Also, depends on the competing alternatives like NEO or NEM.

WHAT DOES THIS MEAN TO ME? That when PoS comes into effect you are efectively a shareholder of the Ethereum network. Help it grow, promote it and be active and we will all profit from it (think of Apple).


Does this make sense?
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