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I think it's a good question. And you're being polite. Not sure why you're being downvoted. My interest in Ethereum is twofold: 1) I got into open source soft
by erikpukinskis 10y ago
I think it's a good question. And you're being polite. Not sure why you're being downvoted.
My interest in Ethereum is twofold:
1) I got into open source software at a time when you ran software locally. An OSS project could just post a tarball and users could download it, modify it, and use it. That meant hosting costs were low for the developers, and most of the computational cost was born by the users. This system has broken down in the X-as-a-Service era. If an open source developer wants to build a web service, they have to basically pay the entire computing bill for their users, which can get exorbitant if your software is popular.
Ethereum is a way to socialize the hosting costs. I can write software as an Ethereum contract, put it onto the network, and then users can pay for their own hosting. I can do the work of setting up the necessary software infrastructure, and they can pay for it without having to do the work of maintaining their own server instance. Something like Ethereum is needed to bring about a resurgence in end-user open source software.
2) Bitcoin has value because it can do some useful tasks, but not very many. You can keep a ledger, transfer funds to another person. That's about it. That's an advantage: it's the first mover, and it is very narrow in scope. It's easy to reason about, and offers a clear value proposition. It is useful the way Western Union is useful, or the way your savings account is useful. Those are big markets, and Bitcoin is worth whatever amount of value it takes to float some large number of transactions from the time of purchase to the time of sale.
Ethereum does function as a currency, but that's almost a side effect. Instead of just burning cycles on transaction processing the way Bitcoin does, Ethereum actually does valuable work. It is useful the way Google is useful, or the way Microsoft Word is useful. And those are really big markets, and growing. Ethereum is potentially worth whatever amount of value is required to float that computational power between the time of purchase and the time of execution. That could be a quite large number.
I think there will be a lot of projects like Ethereum, which do valuable work in a decentralized way and use a currency to float the running computational costs. Ethereum is the first credible such system we've seen and appears to be fairly general purpose. Whether it is The One, or just The First One leaves to be seen.
But as a speculator in currencies, I think it's a great diversification after you've invested in Bitcoin. And I am quite certain there will be another down the line.
- chx 10y ago1) Ethereum is a clear scam after this. Your contracts say one thing unless someone posits a vote where a miniscule fraction of the userbase votes one way and from that point on your contract suddenly say something else. 2) Bitcoin is a Ponzi scheme. It never was anything else and it will never be anything else. That temporarily you can trade shares in a Ponzi scheme without being badly burned is certainly a novelty but beyond that, it's a typical, very old scam.